Exempt vs. non-exempt employees: California law explained!
In order to be considered an exempt employee in California, an employee will generally need to meet a strict duties test. For most exemptions, more than fifty percent of an employee's time must be spent performing exempt job duties. Job Title Irrelevant. Job titles do not determine a California employee's exempt or nonexempt status. Jul 03, · As of January 1, , California law requires nonexempt employees that work for an employer with 25 or fewer employees to be paid a minimum of $ per hour. ? 5 Employees that work for an employer with more than 25 employees are entitled to be paid $ per hour.
Determining correct exemption status for Jn employees is one of the most challenging, complicated and risky tasks nonexmpt by human resources professionals. Generally, employees are to be considered non-exempt hourly unless they meet the specific requirements for exempt status.
Most employees in a company will be non-exempt, as it is usually more productive to have more people actually doing the work than capifornia and supervising the work. Employfe is common to want employees to be exempt because it makes so much of administration easier and can be more conducive cwlifornia managing employee costs.
This is however, not at all in line with California requirements, which are very prescriptive and must be followed in all cases. It does not califprnia what the employer or the employee want. It is strictly and only a matter of following the California requirements for determining exempt or non-exempt status. For a detailed overview of the qualifications for exempt status in California, and a cxlifornia of each of the exemptions, please continue to our blog.
There are three factors which must all be in place in order for an employee to be classified as exempt from overtime in California:.
Salary Threshold — The salary threshold in California is two times the state minimum wage. If an employee is not paid correctly according to the salary basis, they cannot be considered an exempt employee. It is not determined by the job title or by the job description. It is determined by what the employee actually does during the work day.
Exempt employees are classified under a specific exemption. In California these are the Administrative exemption, The Executive exemption, the Professional exemption including Computer Professionalthe Outside Sales professional and the Inside Sales professional.
When evaluating the actual work an employee does for how to sew a wallet exempt or non-exempt status, the first critical, yet difficult, point of understanding should be that the importance of the work to the organization is not what qualifies a cqlifornia as exempt. All jobs are important, but that does not mean that they will meet the how to reinstall sound card what is a nonexempt employee in california requirements included in the California duties test.
Exempt work specifically includes, for example, all work that is directly and closely related to exempt work and work that is properly viewed as a means for carrying out exempt functions. In general, the exercise of discretion how to acne free face independent judgment involves the comparison and the evaluation of possible courses of conduct, and acting or ni a decision after the various possibilities have been considered.
The exercise of cqlifornia and independent judgment must be more than the use of skill in applying well-established techniques, procedures or specific standards described inn manuals or other sources. The exercise of discretion and independent judgment implies that one has authority to make an independent choice, free from immediate direction or supervision. However, discretion and independent judgment can be exercised even if the decision or recommendation is reviewed at emmployee higher level.
Factors to consider when determining whether an employee exercises discretion and independent judgment with employde to matters of significance include, but are how to enlarge font in outlook limited to:.
This needs to be a genuine primary duty and responsibility, not something random or occasional. To be exempt, an administrative employee must earn a monthly salary equivalent to at least two times the state minimum how to use a top load washer for full-time employment.
The employee must be primarily engaged in duties that meet the test of the exemption. The activities constituting exempt work and nonexempt work are construed in the same manner as those terms are construed under the Fair Labor Standards Act FLSA and federal regulations.
Exempt work includes, for example, all work that is directly and closely related to exempt work and work that is properly viewed as a means for carrying out exempt functions. Administrative vs. An area of confusion for workers is determining whether work is administrative or production work.
Production work is nonexempt. The California Supreme Court in Harris v. Superior Court, 53 Cal. The qualitative component requires the work to be administrative in nature; it includes work done by white-collar workers engaged in servicing a business. To be exempt, an executive employee must earn a monthly salary equivalent to at least two times the state minimum wage for full-time employment. The activities constituting exempt work and nonsxempt work empkoyee construed in the same manner as those terms are construed under the FLSA and federal regulations.
Please see the national Exempt Personnel section. Note: The federal regulations for the executive exemption are not as strict as California law and, therefore, have little effect on California califognia. Because California law is stricter than federal law, California employers should follow state law. An employee who merely applies his or her memory in following prescribed procedures or determining which required procedure out of the company manual to follow is not exercising discretion and independent judgment.
To be exempt, a professional employee nonexrmpt earn a monthly salary equivalent to at least two times the state minimum wage for full-time employment. Note: The federal regulations for the professional exemption are generally not as strict as California law and, therefore, have little effect on California employees. The exempt duties requirements in California are specifically required to be interpreted in accordance with the similar requirements of californis law.
A special exemption from overtime requirements applies to certain very highly paid and highly skilled professional computer employees, even though they are paid on an hourly basis CA Lab.
Code Sec. An employee qualifies for this exemption only if all the following requirements are met:. Pharmacists and registered nurses employed to engage in the practice of nursing are not exempt professional employees in California unless they meet the criteria for exemption as executive or administrative employees. Certified nurse midwives, certified nurse anesthetists, emploeye certified nurse practitioners may qualify for the professional exemption.
The exemption does not apply to an employee in a medical internship or resident program. The Division of Calofornia Statistics and Research will adjust the rate of pay required for the iis every year, to be effective the following January 1, by an amount equal to the percentage of increase in the California Consumer Price Index for Urban Earners and Clerical Workers CA Lab. Outside salespeople do not need to meet the salary requirements that must be met by exempt executive, administrative, and professional employees in California.
Basic Distinction Between Exempt and Non-Exempt Employees
Jan 15, · What Is a California Non-Exempt Employee? Non-exempt employees in California are given certain rights, including minimum wage, overtime, and breaks. Minimum Wage. Non-exempt employees are required to make at least minimum wage. Jun 27, · Employers that misclassify a non-exempt employee as exempt engage in wage theft by depriving the misclassified employee of the minimum and overtime wages, meal and rest breaks, and other privileges of California law afforded to non-exempt employees. The consequences of misclassifying a non-exempt employee as exempt can be significant. Feb 12, · In California, if an employee is not performing exempt level work more than 50% of the time, they cannot be considered an exempt employee. Exempt employees are classified under a specific exemption. In California these are the Administrative exemption, The Executive exemption, the Professional exemption (including Computer Professional), the Outside Sales professional and the .
Home » Legal Blog » Non-Exempt vs. However, California law does not require employers to comply with these requirements with respect to exempt employees. As you might expect, the distinction between exempt and non-exempt workers leaves some room for abuses by employers.
These employers can withhold thousands of dollars of wages and other benefits from misclassified employees. At Custis Law, P. To learn more, please call or visit our online contact form to set up a free case assessment. Our employment lawyers can explain your legal options after reviewing your situation. The Executive, Administrative, and Professional Position Requirement: The California Department of Industrial Relations has established three categories of exempt employees based on the duties that they perform as follows:.
In addition, there are some jobs that are specifically designated as being exempt, including outside salespeople and certain employees of computer companies if they comply with additional requirements. The Discretion and Judgment Requirement: When considering whether the employee exercises sufficient decision-making and discretion in performing job-related tasks to be classified as exempt, the focus is on how much independence you have when doing your job.
You would be properly classified as an exempt employee if you:. If you are classified as an exempt employee in California and your salary is less than the preceding amounts, you are likely misclassified as exempt. Employers are obligated by California law to provide all non-exempt employees with the requisite minimum wage, overtime pay, and off-duty meal and rest breaks. Employers that misclassify a non-exempt employee as exempt engage in wage theft by depriving the misclassified employee of the minimum and overtime wages, meal and rest breaks, and other privileges of California law afforded to non-exempt employees.
The consequences of misclassifying a non-exempt employee as exempt can be significant. If Sarah worked on average 50 hours a week, her employer would be depriving her of 10 hours of overtime each week.
If Sarah were to bring a lawsuit against her employer for misclassification, she could seek all unpaid minimum and overtime wages, among other damages. Under California law, employees can seek up to four years of unpaid minimum wages and overtime. Those unpaid wages can be considerable. You can reach our firm by calling or by using our online contact form. Ley de California sobre licencia por enfermedad con goce de sueldo: 10 cosas que los empleados deben saber.
If you would like to schedule a free, no-risk consultation with Custis Law, P. If we cannot answer you inquiry immediately, we will be in touch within 24 hours. You would be properly classified as an exempt employee if you: Exercise your own discretion and judgment in making job-related choices; Implement strategies without having to get approval; Are free from direction or supervision in deciding a course of action; and Have authority to make key decisions in how you perform your job.
Employers Engage in Wage Theft by Misclassifying Non-Exempt Employees as Exempt Employers are obligated by California law to provide all non-exempt employees with the requisite minimum wage, overtime pay, and off-duty meal and rest breaks. Recent Blog Posts. Contact Custis Law, P. Send Keith a Message.
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