1(C).↥, See Cal. This includes being subject to … An employee might also be considered administrative if they perform “functions in the administration of a school system, or educational establishment or institution, or of a department or subdivision thereof, in work directly related to the academic instruction or training carried on therein.” (Id. Those include: This article explains these exemptions in greater detail, as well as what happens when employers fail to property classify their employees under California Law. This calculation gives us a monthly salary that is equal to twice the state minimum wage for full-time employment.22. Executive employees receive little direct supervision. Code of Regs., tit. 3.↥, Cal. This penalty often arises when the employee isn’t sure how much back-pay they might be owed because the employer mistakenly classified the employee as exempt. 8, § 11050, subd. This website contains "communications" within the meaning of rules 7.1–7.3 of the California Rules of Professional Conduct. (a) [“Eight hours of labor constitutes a day’s work. If the employer failed to keep proper records of the employee’s work, the employer may be obligated to pay the employee a penalty pay stub penalty.83 The amount of the penalty depends on the number of pay periods that the violation lasted. Code of Regs., tit. When an employer willfully fails to pay an employee’s wages on-time as requirement by the Labor Code, they can be subject to a waiting time penalty. (e) [“For the purposes of this section, ‘primarily’ means more than one-half of the employee’s worktime.”].↥, Labor Code, § 515, subd. Exempt from overtime provisions Order 14 Any employee who is engaged in work that is primarily intellectual, managerial, or creative , and which requires exercise of discretion and independent judgment, and for which the remuneration is not less than two times the monthly State minimum wage for … If you require legal advice, you should contact a lawyer to advise you personally about your situation. Occupations to which special overtimes rules apply include: In many cases, there are specific legal definitions for these kinds of jobs. California courts narrowly construe the exemptions explained above. 8, §§ 11010–11170 [wage orders of the California Industrial Welfare Commission].↥, Cal. is responsible for all communications made on this website. Certain unionized employees that are subject to a collective bargaining agreement., Workers in specific occupations that have special overtime rules., The right to a minimum wage (provided, of course, that they met the minimum salary requirement).. § 541.602(a).↥, Conley v. Pacific Gas and Elec. Employees usually have three years in which to make a wage claim under California law.88, The clock begins to run at the time the wages first become legally due. California exempts executive employees from its minimum wage and overtime requirements. (2)(R).↥, Cal. Working for over 6 days in a single workweek also qualifies a worker for overtime. Forcing overtime (3)(D), 11070, subds. Under California overtime law, workers are entitled to earn 1.5 times their regular wage when they work more than 8 hours a day, unless they fall into one of the California overtime exemptions. (2)(M).↥, See, e.g., Cal. If the salary requirements are met, the next question is whether the employee is employed in an administrative, executive, or professional capacity.23 This is sometimes called the “white collar duties” test. 8, § 11040 [providing that, for each exempted category, the employee must earn “a monthly salary equivalent to no less than two (2) times the state minimum wage for full-time employment”].↥, Labor Code, § 515, subd. Overtime Exemptions More workers will be exempt from California’s specific, and generous, overtime wage provisions. Call (619) 234-2833 today to schedule your free consultation with a California employment law attorney at the Mara Law Firm. Instead, they will be considered exempt if: Employees who are considered “outside salespersons” are generally considered exempt employees.54 An outside salesperson is defined as someone: Some truck drivers are exempt from California’s overtime laws (but not other employment rights, like meals breaks or the minimum wage).56 This exemption applies to interstate truck drivers and drivers who transport hazardous materials.57, In those situations, the drivers’ hours are controlled by either: federal regulations,58 or California’s motor vehicle regulations.59, Union employees are sometimes exempt from California’s overtime laws.60 To qualify as exempt, the employees must be employed under a collective bargaining agreement that expressly provides for the wages, hours of work, and working conditions of the employees.61, The collective bargaining agreement must also provide premium wage rates for all overtime hours worked and a regular hourly rate of pay of at least 30 percent more than the state minimum wage.62. (11)(B), (12)(B).↥, United Parcel Service, Inc. v. Superior Court (2011) 196 Cal.App.4th 57, 69.↥, Labor Code, § 226, subd. There are three types of professional employees that can qualify for exemptions: The professional employee exemption is fact-specific and depends on the nature of the work that the employee primarily undertakes. In general, an employee is only exempt if they are paid on a salary basis (rather than an hourly wage).11 The salary must be at least at least twice the state minimum wage for full-time employment.12, A salary, for these purposes, is an unvarying minimum amount of pay.13 The employee’s pay must be predetermined, and cannot change based on the number of hours worked or the quality of the work performed.14, Courts have suggested that employers can deduct from an employee’s pay for full-day absences and still consider the employee to be paid on a salary basis.15 But the employee would no longer be considered “salaried” if the employer deducted for partial-day absences.16, If the employee’s pay is based on the number of hours worked with no minimum guarantee, the employee will be treated as being an hourly employee (an thus nonexempt).17, As mentioned above, California law requires the employee to be paid a monthly salary of at least twice the state minimum wage for full-time employment to qualify as exempt. California employees are entitled to recover unpaid overtime plus interest against employers. So not all employees will qualify as exempt. Licensed physicians and surgeons are sometimes exempt for the purposes of overtime compensation. Code of Regs., tit. Sections 3 through 12 of the Orders (3 through 11 for Order 16-2001) do not apply. As of January 1, 2008, minimum wage in California is $8.00 per hour. For the first pay stub violation, the employee is entitled to a $50 penalty.84 The employee is then entitled to a penalty of $100 per pay period for every violation after that, up to $4,000.85. Eligible employees must be … In a commission-based arrangement, the size of the employee’s compensation depends on the amount or value of the thing that was sold.41, A discretionary payment that an employer can choose to pay or withhold, such as a performance bonus, is not a commission even if it is computed as a percentage of sales or profits.42. The more common exemptions are discussed below. 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