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Exempt Employee or Non Exempt Employee That is the question!

Misclassification

Many noteworthy class action lawsuits have come down to an employer misclassification of nonexempt employees. Let’s look at the facts.

In the US, generally there are two types of employees- ‘exempt employees’ and ‘non-exempt employees.’ The difference? The most significant differentiation is with the issue of overtime work. The Fair Labor Standards Act (FLSA) is the federal law that regulates these distinctions. The FLSA states that employers are obligated to pay at least minimum wage for up to 40 hours per week as well as overtime pay. It also specifies that exempt employees are not entitled to overtime pay.

CALIFORNIA LAW

“While California law has more rigorous standards than federal law, federal law still warrants some attention. For one thing, the Department of Labor Standards Enforcement (DLSE) has indicated that, although there are differences between the state and federal exemption standards, the federal regulations may serve as a guide where there is no conflict.”https://www.calchamber.com/california-employment-law/pages/exempt-nonexempt-employees.aspx

California law is based on the premise that every employee is a non-exempt employee. This means that they are entitled to overtime pay, meal and rest breaks, and minimum wage, per our federal labor laws. Exempt employees are ‘exempt’ from certain wage and hour requirements as they pertain to their pay and duties. Essential to understand and be aware of is that the employer bears the burden of proof in regards to an employee’s exemption.

Exempt Employees in California

In many cases, there are three simplistic requirements that determine whether a worker is an exempt employee under California law:

“Minimum Salary. The employee must be paid a salary that is at least twice the state minimum wage for full-time employment.
White Collar Duties. The employee’s primary duties must consist of administrative, executive, or professional tasks.
Independent Judgment. The employee’s job duties must involve the use of discretion and independent judgment.
If all three requirements are met, the employee will usually be classified as “exempt” from overtime, minimum wage, and rest break requirements (but not meal break requirements). There are, however, many caveats to this test.” https://www.calchamber.com/california-employment-law/pages/exempt-nonexempt-employees.aspx
In Conclusion- Understand your Rights as an Employee

If you have any questions about your status as a worker in California it is imperative that you talk to an expert. The rules and regulations pertaining to exempt and to non- exempt status are not simple to navigate and employers have often used the complexity of the rules to their advantage.

CONTACT A PERSONAL INJURY ATTORNEY, CONTACT KJT LAW GROUP

Working with a professional who understands the complexities associated with employment law will improve the chances of you being protected. Let the professionals at KJT LAW GROUP help. Call us at (818) 507-8525 or email us at info@KJTLawGroup.com for a free consultation.

Insights on artful litigation

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