Some salaried or exempt workers in California do not qualify for overtime payment. Their eligibility is usually based on their salary threshold and job duties. The problem comes if you are wrongly listed as salaried or exempt, so your employer does not pay overtime as legally required. If you are a salaried worker, you must earn at least twice the minimum wage. You must also meet some executive, administrative, and professional duties. If you do not meet these criteria, your employer should classify you as non-exempt, which makes you eligible for overtime.

Determining your eligibility for overtime payment can be tricky without legal help. Our employment law experts at Stop Unpaid Wages can help you decide whether or not you are correctly or incorrectly classified as a salaried or exempt worker. If you qualify for overtime payments, we can guide you through all necessary legal processes until you receive the full payment you deserve.

Exempt Workers Under California Employment Law

Exempt workers in California are not covered under meal break, minimum wage, and overtime laws because they earn at least twice the minimum wage, and their job must align with a specific exemption classification. Specifically, the employment law classifies exempt workers as employees who meet these conditions:

  • They have a fixed salary that is predetermined before employment
  • They earn twice the minimum wage or more
  • They are hired for full-time employment
  • Their duties fall into a particular exempt category, specifically executive, administrative, or professional categories. These categories are clearly outlined under the employment law.

Being exempt means that you are not entitled to additional pay if you work more than eight hours a day or 40 hours a week. You are also not compensated for missed rest and break times. A salaried or exempt employee only receives the pay they are entitled to, with no additional pay for additional services rendered. Here are the main categories of exempt workers in California:

Executive, Administrative, and Professional Employees

This is also called a white-collar exemption for workers who are ineligible for overtime payment. You must meet the following specific requirements to be exempted from overtime if you fall under this category:

  • More than half of your duties should revolve around professional, executive, or administrative work
  • Your job description includes making independent judgments or decisions from time to time
  • You must earn the minimum wage twice or more for workers who work at least 8 hours a day, or 40 hours a week.

The common misconception is that any worker who engages in executive, administrative, or professional duties and earns a fixed salary is exempt from overtime payment. This is the misconception most employers apply when denying non-exempt workers overtime payment.

Registered Nurses

Most registered nurses fall under the non-exempt category of workers entitled to overtime payment. However, nurses who engage in executive and administrative work, and whose salaries meet the required threshold, are categorized as exempt.

Computer Software Engineers

Engineers whose work is mainly in computer hardware and software can be exempted from overtime payment if they meet the salary threshold for exempt or salaried employees. These include software engineers, computer system analysts, and program designers or developers. However, the following must be true for them to be exempt:

  • Their work should be mainly intellectual or creative, meaning they must work independently and have the discretion to make sound judgments.
  • They must be skilled or proficient in applying special information to computer programming, software engineering, and computer system analysis.
  • They must earn at least twice the minimum wage, which translates to a minimum of $94,603.25 yearly, or $45.42 hourly.

However, exemption under this category does not apply to entry-level employees and trainees who have not yet mastered the skill to use highly specialized skills and information. You are also not exempt if you engage in computer manufacturing, maintenance, hardware repair, and other computer operations. Content writers and computer specialists who create visual effects for the film, television, or theater industries are generally considered non-exempt.

Doctors and Surgeons

Some licensed medical professionals are exempt, especially those needing a license to provide services. However, this exemption does not necessarily apply to interns, residents, and physicians protected by collective bargaining contracts.

As a medical professional, you meet this exemption requirement if you earn at least $82.72 hourly.

Private Teachers

Teachers in private schools are also generally exempted from overtime payment. However, you must meet the following criteria to fit in the category of salaried or exempt workers under California employment law:

  • You should be fully dedicated to teaching
  • You must customarily and regularly demonstrate independence in decision-making and judgment.
  • You should have valid credentials for the teaching profession, or have a higher degree or a bachelor’s degree from a recognized university.

Additionally, private teachers who should be exempt earn 100% of the minimum amount paid to credentialed teachers by the state school district or at least 70% of the minimum pay of what a credentialed teacher earns in a school district or city where your school is located.

California Government and University Employees

Most people working with the local and state governments and the University of California are exempt from overtime and meal break laws. Some public employees, like the police and firefighters, have unique overtime laws.

Employees on Commission

If you work on commission, your pay is usually based on your sales or performance rather than hours worked. Thus, you are exempt from overtime and meal break laws. This mainly applies to workers who make more than 1.5 times the state minimum wage, or at least half of whose compensation comes from commissions.

Protections under the Fair Labor Standards Act

The Fair Labor Standards Act, or FLSA, is a law that protects workers' right to receive fair pay. The law sets overtime requirements, defines the number of hours a week a regular employee should work, and sets the minimum wage.

This law protects workers in companies that deal in interstate trade or have an annual minimum income of $500,000. However, this does not necessarily mean that FLSA only protects workers in big corporations; it generally protects all workers in all kinds of workplaces because "interstate commerce" is a broad term, referring to different types of businesses. For example, any company that sends or receives mail, makes phone calls, or has internet connections with other companies across the state is covered by this law.

If you work for a company under the FLSA coverage, you are eligible for overtime payment for all the hours worked above your regular working hours. Your working hours should sum up to forty hours per week, which should be paid according to the regular rate by your employer (it should not go below the state’s minimum wage). Any additional time you work in a week should be paid at 1.5 times the regular payment rate.

There is usually no limitation on the number of additional hours you can work in a week, as long as you are 16 years or older. Also, FLSA does not apply to hours worked on your regular rest days, holidays, or weekends, unless you worked overtime.

Basically, FLSA works every week, meaning that consideration for overtime is based on a recurring fixed period of seven consecutive days, with each day having 24 hours, which translates to 168 hours a week.

What To Do if Misclassified as Salaried or Exempt

Remember that your employer can misclassify you as salaried or exempt, yet you do not meet the criteria for this classification. This means that your employer owes you overtime back payments and possibly other benefits you have not received. Start by finding out whether you are correctly classified as provided under FLSA. Then, determine how much your employer owes you in back payments. Once you have enough information, you can contact an employment law attorney to help you understand your rights and the legal processes to follow to recover the back payments.

Sadly, many employers deliberately violate employment laws, particularly FLSA, to avoid meeting the legal payment requirements. Some employers take advantage of workers who are unknowledgeable about labor laws to avoid paying them the amount they deserve for the time they put into the work. Others trick their workers into taking on extra work or forgoing their meal breaks without offering anything in compensation.

If you fall into any of these categories, you can recover back time payments for all the additional hours you have worked without pay. A competent employment law attorney can help you. They can file a wage claim against your employer on your behalf to receive full compensation for the unlawfully denied payment.

You can also claim compensation for work done off the clock. Off-the-clock work is generally the work you do for which you do not receive compensation. For example, you deserve compensation if you must revise a project, complete medical charts, or handle some paperwork or administrative work after completing your regular assignment. However, some employers do not pay for these extra duties, which is a gross violation of the employment law.

If you are a salaried worker but do not meet the criteria for classification as an exempt worker, you deserve compensation for any work you do outside your regular schedule. However, you must prove the following to file a successful claim against your employer:

  • You offered some services to your employer that you did not receive payment for
  • Your employer was aware that you were working at that particular time
  • Your employer did not do anything to ensure you are paid for the work, or to stop you from engaging in additional work

Here are some steps you can take in recovering compensation from your employer:

Gather Evidence to Support Your Claim

Before filing a claim against your employer for misclassification or unpaid overtime, you must gather solid evidence to support the claim. You can provide your pay stubs, a document detailing your job description and duties, employee handbooks, and work schedules or time records. This will prove that your employer has classified you wrongly as an exempt employee, yet you deserve payment for all the overtime you have rendered to their business.

Research About FLSA and Exemptions

Understanding the employment law and exemptions provided under FLSA is essential to ensure you have a valid claim against your employer. Remember that the various exemptions include professional, administrative, executive, and computer exemptions. You are exempt from overtime payment if you fall under these categories. However, if your job description does not meet the criteria, you are eligible for overtime for any additional time you render to your employer.

Determine How Much Your Employer Owes You

If, from researching about FLSA exemptions, you discover that your employer has misclassified you as exempt, yet you are eligible for overtime payment, determine the amount. You must include this in your claim, as it is the amount you want your employer to compensate you for all the additional time you worked without pay. Remember that your overtime eligibility is determined mainly by your daily duties, not your job title.

Hire a Competent Employment Law Attorney

Although you can file a claim against your employer without legal help, an attorney increases your chances of obtaining the compensation you deserve. First, consult with a skilled attorney to understand the viability of your claim and options. They will also help you understand your rights and navigate all complex legal processes. An attorney will investigate the matter further and file the necessary paperwork before the deadlines provided under the statute of limitations. They will also fight alongside you for the best possible outcome.

You can file a claim against your employer even if you are owed only a small amount. What matters is that your employer failed to compensate you for the additional time you worked for the company. Additionally, you are entitled to back payment plus interest, which can amount to a significant figure, depending on how long your employer has failed to pay you according to the law.

Filing a Wage Claim Against Your Employer

Once you are ready to file a claim against your employer, your attorney will help you obtain and fill out a DLSE Form 1, or the initial claim form. You must complete it correctly before filing it with the Department of Labor Standards Enforcement, or DLSE. The form requires you to provide details about your claim, employer, and the wages or penalties you claim. You can also offer other information supporting the claim, including your regular working schedule and job description. A skilled lawyer will ensure you fill out the claim form correctly to improve your chances of a favorable outcome.

You can submit the form to the department in person or by mail when it is filled out. Ensure it reaches the office by the required deadlines, according to the statute of limitations. Additionally, you must attach the necessary documents to support your claim. The documents needed, in this case, will verify your claim and provide the information the department needs to decide your case. Although DLSE conducts independent investigations, you can strengthen your claim by providing all the supporting documents.

The department will also ask for additional documents if the information it is interested in is not included in the claim. Here are some of the documents you must submit with your claim to start the legal process:

  • A time record, or document, showing how many hours you have worked during the duration where your claim falls. This can be recorded in a journal or a calendar entry.
  • A record of your pay during the period where your claim falls. You can provide your pay stubs to verify this information.
  • A notice of employment, or the notice your employer gave you after hiring you. The notice usually contains details about you, the employer, and the hourly rate.

Additionally, the department can request more documents from your employer to verify the information you provide. The employer can give even more information than you have, which can be helpful in your case. If you have an employment contract, provide a copy of it in your claim or any other document containing your payment rate.

According to the statute of limitations, such claims must be prepared and filed within a particular timeline. In this case, you have up to three years to file a wage or overtime violation claim with the DLSE. If the violation continues, the DLSE will investigate three years after submitting your claim.

If the basis of your claim is an oral promise by your employer to pay you more than the minimum wage, you have two years to file a lawsuit against them if they violate the wage law. However, if the claim is based on a written contract, you can file a lawsuit against your employer within four years.

Either way, filing a claim immediately after you notice the violation is helpful. Act quickly, with the help of your attorney, to ensure that you have everything needed to file your claim with DLSE. If the department grants your claim, you could recover the amount your employer owes you in unpaid wages, legal costs, court fees, and accrued interest on unpaid wages.

If DLSE or a court finds that your employer willfully violated federal labor law, you may be entitled to recover unpaid wages plus additional damages equal to the amount owed. Additionally, you are entitled to double damages if your employer did not act in good faith or made a deliberate mistake.

The Benefits of Working With an Attorney

The employment law is complex and challenging to understand on your own. The legal processes involved when filing a claim against your employer are also challenging to navigate without help. An employment law attorney is your best companion if you have just discovered that your employer misclassified you as salaried or exempt from overtime payment. Here are some of the benefits you will enjoy from engaging a skilled attorney:

Expert Legal Advice

A competent attorney understands employment law better than anyone. Thus, they are better positioned to offer the right legal advice for effective decision-making. If you have a strong case against your employer, your attorney will advise you to pursue compensation and help you through all legal processes involved.

Legal Representation

A competent attorney will also serve as your legal representative when preparing and filing your claim with DLSE and during all hearings. They will represent your best interests and fight with you for the best possible outcome. They will also present evidence to support your claim if your case goes to a hearing.

Navigating Complex Matters

Some wage claims are more complex than others. You need legal help to navigate even the most complicated matters in your case. For example, if part of your work is administrative, executive, or professional, a competent attorney can determine your overtime eligibility based on other details, including your particular duties and pay. They can also dig deeper into the employment law, particularly FLSA, to prove a violation by your employer.

Find an Experienced Employment Law Attorney Near Me

If you are classified as a salaried or exempt worker in California, you could be ineligible for overtime payment. However, the classification could be wrong, making you eligible for overtime, off-the-clock payments, and other benefits to which non-exempt workers are entitled. You can find out about your eligibility for overtime payment by reviewing exemptions under the Fair Labor Standards Act.

We help salaried or exempt workers determine their overtime eligibility at Stop Unpaid Wages. If your employer has wrongly classified you as exempt, but you do not meet the salary threshold, or your job description does not meet the requirements, you could have unclaimed wages or benefits. We can work with you to prepare a valid claim and file it with the DLSE to start a process through which you can recover full compensation for your unpaid wages. Call us at 424-781-8411 to review your case with us and learn more about our services.