Do My Employees Qualify for Overtime Exemptions in California?
You may be wondering if your employees are exempt from overtime. Few employees meet the qualifications for these exemptions, but they do exist. Here, we will cover the overtime exemptions in California to help you decide if your employees are covered.
What are the Overtime Exemptions in California?In California, overtime exemptions follow common rules for other states in the U.S. The State of California Department of Industrial Relations (DIR) specifies the following common employment exemptions for overtime: ? Executive, administrative, and professional employees as defined by the state, ? Hourly-paid computer software employees meeting all requirements set forth in the DIR's Wage Orders, ? Directly-employed state employees, including city and county employees, ? Outside salespersons, ? Employees whose work is primarily creative, intellectual or managerial, and whose remuneration is not less than two times the state minimum wage, ? Professional actors, This is not a comprehensive list, but it does cover the most common overtime exemption situations in the state. Many of these exemptions are specific and depend on other situations, as well. The laws for overtime exemption are detailed and should be examined thoroughly prior to determining whether or not your employees are exempt.
When Employees Challenge ExemptionEmployees who work over 8 hours in a day or 40 hours in a week often feel they should receive the standard time-and-a-half overtime compensation, even if they are exempt. They may not understand the laws which make them exempt from overtime pay, or they may not agree with them. This may lead to long and costly investigations by the California Labor and Workforce Development Agency (CLWDA). This is why it is important to make sure your employees are exempt from overtime pay prior to declaring the position exempt, and otherwise, pay overtime as required to positions who qualify for overtime pay. When an investigation has been launched by the CLWDA, it is best to have quick and diligent representation by a knowledgeable attorney. If your company is found in violation of overtime law, you may be responsible for back pay to your employees on top of fines. If you are unsure of your current and future employees' overtime exemption status or feel you may be facing an investigation or lawsuit in regards to overtime pay, contact Garcia & Gurney, ALC right away. We will guide you through your case and offer meticulous, educated representation.