California overtime laws can be challenging to comprehend. It might be difficult to determine whether you are entitled to overtime pay and, if so, how much you could receive. It is essential to speak with a skilled employment and labor attorney if you think that your status as a salaried exempt employee is incorrect. If your employer has refused the overtime pay you are due, our team of legal professionals at The Workers Compensation Lawyer Law Firm could advise you on the steps to take. We will also guide you through bringing a lawsuit against your Los Angeles employer.

Who are Exempt Employees in California?

In Los Angeles, CA, overtime laws do not apply to exempt employees. If you are an exempt employee and work over eight hours daily or forty hours weekly, your employer should not pay you time and a half. Additionally, your employer is not required to provide you with lunch and rest periods.

The following types of workers are classified as exempt workers under California employment law:

Administrative, Executive, and Professional Workers

This is the most significant and comprehensive category of exempt personnel, also known as a "white-collar exemption." If you fall under this particular category and are exempt, you must:

  • Be at least 50% employed in managerial, executive, or professional positions.
  • Regularly and generally use your judgment and discretion at work.
  • Receive a salary for forty hours per week of full-time employment that is twice California's minimum wage.

To qualify for this exemption, workers must make at least $45,760 annually. This amount is current as of January 2019 and keeps rising owing to inflation. It is a prevalent misconception that everybody with a desk job or a salary qualifies as an exempt worker under the white-collar exemption category.

Registered Nurses

Registered nurses typically earn overtime compensation because they are non-exempt employees. There is, however, one exception. If they devote their time to administrative or executive duties and satisfy other criteria for the administrative, executive, and professional worker exemption category, they are eligible for the exemption.

Computer Software Experts

Additionally, the Labor Code exempts computer software specialists who focus on designing computer hardware or software, analyzing computer systems, or developing or designing programs. However, the following information should be accurate:

  • The employee primarily focuses on creative or intellectual work that demands individual judgment.
  • The employee is knowledgeable and experienced in using technical information for computer system analysis, programming, and software engineering.
  • The computer software specialist earns more than $94,603,25 a year, or $45.41 per hour, paid monthly.

It is important to note that the exemption does not cover the following:

  • Trainees and entry-level employees who are still learning to use highly technical information.
  • Workers who lack the knowledge and abilities necessary to function independently.
  • Individuals who develop, maintain, or repair hardware for computers.
  • Writers who produce material for computers and software.

Those who develop imaging effects for TV, the theater, or movies use computer programming and system analysis.

Surgeons and Doctors

Doctors and licensed surgeons who carry out tasks requiring a license are likewise free from overtime regulations. Notably, this exception does not apply to residents, interns, or physicians covered by collective bargaining agreements. The professional must earn more than $82.72 an hour for this exemption status.

Private School Teachers

Teachers working in private schools are another group free from California's overtime regulations. To be qualified for the exemption, the teacher must:

  • Primarily devote yourself to teaching.
  • Consistently and typically use your judgment and discretion.
  • A degree from a reputable university, a higher degree, or relevant teaching credentials.

Teachers who earn more than the following sums are excluded from the rule:

  • An accredited teacher receives 100 percent of the minimum wage in any California district school.
  • 70% of the lowest wage a school district in the city or county where the school is located will pay an accredited teacher.

The University of California and Government Employees

The all University of California and local/ state employees are exempt from overtime laws.

Workers Earning Commissions

The final group includes workers who:

  • Earn more than 1.5 times the minimum salary.
  • Make more than 50% of your income from commissions.

Calculating Salary under the California Law

California labor laws direct that employees receive compensation double the amount outlined in the state's minimum wage for full-time workers. As a result, the worker is eligible for exempt status. A full-time employee is expected to work 40 hours a week.

The minimum wage levels changed as of January 1st, 2018. There are two minimum wage options available to an employee. Employees who work for companies with 25 or fewer employees are entitled to a minimum salary of $10.50 per hour. The minimum wage for an employee is $11 per hour if the firm employs 25 or more people.

Based on the foregoing, the minimum pay expectation should be multiplied by two and the recommended number of hours per week, which is 40, to determine the salary for exempt employees. In California, a salaried worker receives twice the minimum wage requirement weekly.

The individual must work in the appropriate category and meet the payment requirements to be exempt. Typically, exempt workers are assigned to perform "white-collar duties." These could be executive, clerical, or professional responsibilities.

So, to identify if a job requires executive, administrative, or professional responsibility, we must consider the individual's tasks. No matter the job's title or the position's description, functions must be carried out. It is significant to highlight that the responsibilities test for white-collar employment focuses on the employee's principal tasks. According to California's labor rules, an employee must spend more than half of each workday on core or major responsibilities to pass the test.

An employee will be excluded from many rights if they pass the white-collar duties test, including the following:

  • Remuneration for additional or overtime hours completed.
  • A 10-minute rest interval during the break
  • Receiving a minimum payment as long as the minimum wage standard is met

An employer must confirm that the employee satisfies the criteria for exemption. Understanding one's job rights are also crucial for employees. To ensure that you receive your due payments and fundamental rights, ensure you are in the appropriate category.

Who Is Covered Under the Fair Labor Standards Act (FLSA)?

The FLSA is another comprehensive regulation that safeguards employees’ rights to compensation, imposes minimum wage requirements, establishes overtime requirements, and defines the forty-hour workweek.

Employers Coverage

Companies operating in interstate commerce or with yearly sales of at least $500,000 are subject to the Fair Labor Standard Act. You might believe that the FLSA only applies to those who work for large organizations. The reality is that this law covers practically all workstations. This is so because the definition of interstate commerce is so broad.

For instance, businesses are deemed engaged in interstate trade if they occasionally send letters to and from other states using the United States mail. Additionally, employees who make or receive business calls on corporate phones or computers are subject to the FLSA, as is their employer. Small farms and employers with few outside hired workers are excluded from the FLSA.

Employees Coverage

You must be paid overtime for all hours worked unless you fall under one of the excluded categories mentioned above. Over forty hours should be worked in a workweek at a rate equal to one and a half times the hourly wage. The number of hours anyone over 16 can work in a workweek is unrestricted. If no overtime is worked on weekends, scheduled rest days, or holidays, the FLSA does not mandate paying extra earnings for such tasks.

This law is effective during the workweek. The workweek is a defined period of seven consecutive twenty-four-hour days that occur regularly (168 hours). It need not begin on the first of the week; it may begin at any time of the day. Workweeks are established differently for each employee.

What Can You Do if Your Boss Misclassifies You as an Exempt Employee?

Any seasoned employment law professional will tell you that they have seen plenty of instances when employers mistakenly identify non-exempt individuals as exempt. This is done to avoid complying with labor law requirements.

Employers frequently count employees unaware of labor laws as exempt because they perform a desk job and receive a salary rather than an hourly rate. In other cases, the worker may even be requested to sign a contract exempting them from overtime requirements before receiving a ton of work off the clock.

Your attorney should assist you in filing a wage or hour suit against your supervisor so you can receive overtime compensation that was wrongfully withheld from you.

Work Off the Clock

Working when you are not supposed to be known as working off the clock. Perfect examples could be administrative tasks, such as finishing medical charts and paperwork or reworking or revising a project at your employer's request.

Additionally, there are times when you should be paid at your hourly rate for the tasks you do. Although most salaried employees fall under the white-collar exception, others do not. So, if you put in more time without receiving more compensation, you can file a lawsuit against your company.

You must demonstrate the following to effectively launch a claim against your employer for work performed off-hours:

  • You performed services for your employer without being paid.
  • You worked, and your supervisor was aware of it.
  • Your manager did nothing to ensure you were paid or prevent you from working on the project after hours.

Filing a Wage/Hour Claim for a Small Amount in Overtime Pay

Most workers believe filing a lawsuit is unnecessary if their employer owes them little overtime compensation. However, in unpaid overtime cases, the employee is entitled to receive underpaid overtime compensation, attorney's fees, and interest.

According to federal law, a corporation that violates the Fair Labor Standards Act (FLSA) and overtime pay regulations are responsible to the impacted worker(s). The employer must give the workers their full overtime pay or unpaid minimum wage. The boss can also be liable for further liquidated damages equal to that.

You should still bring a case even though your overtime pay is not a large sum of money. The business must be held accountable for breaking and violating laws. In addition, the employer might be exploiting other employees.

Unpaid Overtime

Employers who incorrectly designate their employees as non-exempt will not compensate them for overtime. According to California law, employees must be accurately classified to be eligible for overtime pay if they don't fit any of the criteria mentioned above.

Employees have the right to seek back pay for their overtime wages but were not paid if they were wrongly classified and refused extra pay. Even though an employee's pay is modest, these salaries can pile up quickly and total a sizeable sum.

Aside from the back pay, an employer may also be required to cover the worker's legal fees incurred while pursuing their lawful overtime payments.

The statute also calls for paying $100 to $200 for every pay period, during which the employer disregarded the overtime regulations. The state receives payment of the fines. However, in other circumstances, the employee may be eligible to receive only 25% of the penalties.

Mealtime and Rest Break Penalties

Non-exempt workers are mandated by law to take rest and lunch breaks. Incorrect employee classification may prevent a business from offering these breaks. The law permits an employee to get additional compensation for an hour at the usual hourly rate if they skip a meal or a rest period.

If an employee consistently skips their meal and rest breaks, they are entitled to an additional hour's pay every day for each missed break and another hour's pay for each missed meal break. Due to the missing break and meal periods, if the employee were working an 8-hour shift, the company would need to pay them for 10 hours.

How to File a Wage Claim

As a plaintiff, you must complete a DLSE Form 1- Initial Claim or Report - and submit it to the Department of Labor Standards Enforcement. You will be asked to provide information about your boss, the fines or wages you are claiming, and your regular work schedule on the DLSE Form 1. Along with other supporting documents, your attorney should be able to help you complete the form. Both in-person and mail submissions of these forms are accepted at the adjacent DLSE office.

Essential Documents to Attach

The Department of Labor Standards Enforcement may request the following records even though you might not be required to attach any paperwork to the claim. The following documents will be employed to determine the amount your employer owes you:

  • Time records are copies of official paperwork detailing the number of hours you've worked. They might consist of entries made in a journal or dates on a calendar.
  • Copies of the paystubs you received for the time frame you are claiming unpaid payments.

A copy of the Notice to Employee—the notice your employer is required to give you after hiring you. The notice has information about your job, like your name, address, and hourly wage.

The DLSE will also demand that your business submit the papers, as mentioned earlier. So, you should not be concerned if you do not have any evidence to back up your allegations. A document from your employer promising to pay you at a specific rate, such as your employment contract, may also be attached.

Statutes of Limitations for Bringing a Lawsuit

Claims for overtime violations should be made within three (3) years of the offense, just like claims for other wage infractions. The Department of Labor Standards Enforcement would go back three years from when you filed the claim if the violation was still occurring.

You have two years to file a case if it is based on your boss's verbal promise to pay you more than the minimum wage. Moreover, you have four years to file the claim if it is based on a signed contract.

It is advisable to file your lawsuit right away in both situations. In this manner, obtaining witnesses and supporting evidence for your claim would be simple.

How Much Will You be Awarded for Your Unpaid Overtime Lawsuit?

In a lawsuit over unpaid overtime, the amount of compensation is based on the facts surrounding the case. Commonly awarded damages include:

  • The total amount of salary owed
  • Attorney fees
  • Interest on due pay.
  • Court costs

Liquidated damages may also be given to you if your employer breaks the federal labor laws set by the FLSA. These damages are twofold damages, or the complete amount of missed payments.

On the other hand, if your employer broke the law and it wasn't a mistake made in good faith, California labor laws say that you should get twice as much money. Liquidated damages are comprised of a sum equal to unpaid wages plus interest.

Can Your Employer Fire You for Bringing a Due Overtime Claim?

In California, it is against the law for a manager to punish an employee for standing up for their rights. Your manager is participating in unlawful termination if they act in retaliation against you, such as terminating you for filing the case or bringing up wage/hour issues.

According to wrongful termination law, you are entitled to the following compensation:

  • Lost Wages: This is the back salary you would have earned if you hadn't been wrongly terminated.
  • Compensation for loss of enjoyment in life, embarrassment, worry, physical pain, and mental suffering resulting from the unlawful termination is included in the emotional pain or distress and suffering category.
  • Punitive damages—These damages are intended to make an employer pay for their acts. These damages do not need to be connected to the monetary or non-monetary loss you have endured.
  • Lawyer's fees.

Importance of Hiring an Experienced Employment Attorney

Your attorney will first assist you in determining whether you are an exempt employee and whether your employer has broken any state or federal employment laws. Second, the attorney must present you with options for contesting the employer's illegal actions of denying your overtime pay. They will also talk to you about whether or not you should pursue the matter.

Discuss Available Options

You can file a lawsuit against your employer if they violate overtime regulations for exempt workers. There are, however, a lot of other choices.

For instance, in California, you can file a lawsuit with the state's labor department alleging that your employer improperly classified you as a non-exempt worker. The authorities then arrange a hearing to decide regarding your claim. This alternate is more practical and cost-effective. The opportunity to file a lawsuit is eliminated, and the amount of damages can be granted is constrained.

Another viable approach is discussing it with your employer and formally expressing your desire to settle the salary claim. Your lawyer should assist you in weighing your options so that you can make an informed decision.

 Costs and Benefits Analysis

Your attorney will determine whether any of the approaches mentioned above have a chance of success. They will also consider the costs associated with pursuing each alternative. The cost of hiring an attorney to pursue damages and the level of damages you will receive will next be discussed.

Find an Employment Attorney Near Me

Because their employers incorrectly designated them as exempt workers, many employees today are missing out on some of the benefits to which they are entitled. An experienced workers' compensation attorney will assist you in determining whether you are exempt from payment or not and if you have received complete payment for all the hours and days you have worked. If not, they will assist you in informal dispute resolution or filing a lawsuit for damages with your company. Call us at 424-501-9228 if you believe your Los Angeles lawyer violated your non-exempt rights.