California Exempt Employee Classifications: Are You Entitled to Overtime?

California wage and hour law, more commonlyassisting the proprietor or other exempt individual
referred to as California overtime laws arein "servicing" a business in matters of significance.
designed to ensure that employees are not takenThe California Executive Exemption applies to
advantage of by their employer and that theyemployees that spend over half their work time
are being paid properly for their job. In order toeither managing businesses or the departments of
do this, California wage and hour law providesa business. There are six key areas where this
regulations that classify California workers ascompliance is tested to determine if an individual
either non exempt or exempt from overtime. Anmeets California Executive Exemption
employee that is paid hourly is a “non exemptrequirements. Lesser known categories of
employee” and is therefore entitled toexempt classifications are the California
overtime pay when applicable. An “exemptCaregivers Exemption and the California Public
employee” is typically paid by salary and/orFacility Caregivers Exemption.
commission, and is considered exempt fromThe California Salesperson Exemption is a
overtime pay. Thus, an exempt employee’scategory which can be more easily covered if it is
compensation is not a function of the number ofsplit into the two “sales types.” There is
hours they work as it relates to overtimethe California Outside Salesperson Exemption and
compensation.the California Inside Sales Exemption. Both these
Fortunately for California employees Californiaexemption categories have been an area
overtime laws are quite specific when authorizingfrequently abused by employers and often require
what jobs may be considered exempt fromthe assistance of skilled California labor law
overtime pay. The most important factor inattorneys to pursue potential claims. The California
determining the exempt status of an employeeoutside Salesperson Exemption concentrates on
are the duties that employee actually performsthe duties and the place where those duties are
on a daily and weekly basis. Employers often fallperformed, with a focus on over half of the day
victim to the myth that if they just provide a jobbeing engaged in sales activity away from the
title of “manager” or “supervisor”employer's office. In contrast, the California Inside
then they are in compliance with classifying thisSales Exemption applies to salespersons making
employee as exempt from overtime pay. That ismore than 1 ½ times the minimum wage, with
not the case, and whether it is intentional ormore than half of their compensation being
unintentional on the part of the employer, thederived from commission pay. There are additional
employer will bear the burden of proving therequirements about the industries in which these
exemption pursuant to California wage and hourworkers can be employed. California commission
law. Experienced California labor law attorneys areguidelines, whether for inside sales or outside
best suited to review the details of job tasks andsales, provide that employers must pay
duties and assist in making a legal determination ofcommissions earned but uncollected at the time
exempt or non exempt status.of employment separation.
California overtime laws outline several categoriesCalifornia wage and hour law affords many
for exempt employee status. The majorprotections to California workers. Very often the
exemption categories are the Californiamost important regulations are those California
Professional Exemption, the Californiaovertime laws which prevent employer abuses
Administrative Exemption, and the Californiarelated to misclassifying employees as exempt
Executive Exemption. Many of the most commonfrom overtime pay. This area of California wage
jobs that are exempt from overtime areand hour law can often be complex. If you are
classified under the California Professionaluncertain if your employer may be in violation of
Exemption. These are jobs that typically require athese overtime laws, contacting experienced
license to practice, such as doctors, attorneys,California labor law attorneys is a wise course of
registered nurses, pharmacists and teachers. Theaction to get sound legal advice about a potential
California Administrative Exemption deals withclaim.
employees who spend over half their work time