It’s not uncommon for workers to be paid on a salary basis in California. Nor is it uncommon for an employer to automatically assume that their salaried employee is exempt from overtime and applicable laws.
But did you know that just because your employer may say you are “exempt,” it is not necessarily true? The misclassification of nonexempt employees– and subsequent loss of wages– has led to many class action lawsuits here in California.
What is the Difference Between Exempt and Non-Exempt Employees?
In the simplest of terms, an exempt employee is not eligible for overtime pay, while a non-exempt employee must be provided with overtime pay.
Typically, an exempt employee is one in management or one who meets certain qualifications for things like sales or creative work– but don’t let a fancy job title fool you. Just because an employer may create a position with an important-sounding name, does not mean it’s automatically classified as exempt. Rather, the state has rigorous standards that must be met for an employee to truly be considered exempt.
Some of the most common exemptions are:
- Administrative Exemption
- Executive Exemption: Someone whose duties involve management duties, over at least two other employees, and has the ability to hire and fire or advance others.
- Professional Exemption
- Computer Software Field Exemption
- Salesperson Exemption
- Artist Exemption
- State Employee Exemption
A full list of exemptions from California overtime laws can be found here.
If you’re not included in one of the very specific exemptions, then you are entitled to many more legal protections. That’s because when an employee is exempt, California states they are excluded from certain aspects of the Industrial Welfare Commission wage orders including:
- Section 3, California overtime premium;
- Section 4, California minimum wage;
- Section 5, California reporting time pay;
- Section 7California requirement of records under the IWC Orders (but not records required by the Labor Code);
- Section 9, California requirement that employer furnish uniforms and equipment (except, of course, that any expenditure by an employee is recoverable under Labor Code Section 2802).
- Section 10, California requirement that meals and lodging amounts be limited;
- Section 11, California meal period requirement; and
- Section 12, California rest period requirement.
You May Be Owed Overtime Pay: Free Review
The California employment law experts at Lauby, Mankin & Lauby LLP are well-versed in the true differences between exempt and non-exempt status of California workers. Our employment attorneys are offering a free review of your compensation schedule to determine if you’re currently classified and being paid properly under California law. They will also let you know if you are entitled to back overtime pay and may be able to help you claim those wages.
Contact Lauby, Mankin & Lauby LLP for a no-cost consultation and our lawyers will fight for your legal rights as an employee. You can reach us online or call our toll free phone number at 888-959-8508.