Overtime pay is an integral part of the United States work culture. As required by federal law under the Fair Labor Standards Act, employers are required to pay employees overtime for every hour worked over 40 hours per week. Overtime pay is defined as at least 1.5 times normal hourly rate of pay, but for certain occupations, such as police officers and firefighters, the regulations are different.
Like all other states, the state of California has its own unique laws supplementing federal laws. California overtime laws are more stringent than federal overtime laws. In California, overtime is calculated on a daily, not on a weekly basis. For up to four hours of exceeding 8 hours in one day, employers are required to pay 1.5 times the normal hourly wage.
There is also legal variation in whether salaried employees get paid overtime, based on state and federal laws. Employees who are not required to be paid overtime are categorized as “exempt.” Currently, there are approximate 50 million exempt workers from the 120 million workers in U.S. workforce. A person is considered exempt from receiving overtime pay if she meets at least one of the following conditions:
She manages the entire business She supervises at least two subordinates She has the authority to fire employees She “exercise[s] independent business judgment.” She “spend[s] at least 50% of [her] time doing the above.”
Moreover, there are other preconditions that exempt employees from receiving overtime pay. California state law specifies these in more detail. In general, exemptions fall under five categories:
the executive exemption the administrative exemption the professional exemption the computer software professional exemption the outside salesperson exemption
It is important to note that employers are required to pay overtime by the next payroll period following the time in which the overtime wages were incurred. Also, employees cannot waive their overtime rights, and employers can make employees work overtime, assuming that they pay them overtime as well. If employees refuse to work overtime when requested by employers, employers are allowed to discipline the employees.
Finally, it is important to note that employers are legally prohibited to retaliate against employees who seek their due wages, whether those be overtime or not. An example of retaliation is the firing of an employee who seeks his wages. If an employer does discriminate against an employee who seeks his wages, the employee can file a discrimination/retaliation complaint.
If you have been unjust refused overtime pay, have had an employer retaliate against you, or have suffered any overtime-based injustice, contact the Orange County employment lawyers by visiting their website or by calling 888-356-2529.
By: Joseph Devine
Posts Tagged ‘Exempt Employees’
California Overtime Pay Basics
March 23rd, 2010Wage and Hour Law Quick Tip: Pay Now or Pay a Lot More, Later
November 19th, 2009More cases are being litigated over employers deducting unlawfully pay from an exempt employee. Unlawfully deducting pay from employees classified as “exempt” could mean losing the “exempt” status and a finding that the employee is entitled to payment of overtime wages for all hours worked over 40 per week.
Employers must heed all wage and hour laws, lest they find themselves in expensive and time-consuming litigation. In one recent case, the Court concluded that the employer failed to pay the employees on a “salary basis,” which the law defines as payment, “on a weekly, or less frequent basis, a predetermined amount constituting all or part of his compensation, which amount is not subject to reduction because of variations in the quality or quantity of the work performed.”
The Court found that the employer violated the “no-docking” rule by having a written policy stating that all employees could be suspended without pay under at least three circumstances, none of which were exceptions to the “no-docking” rule and numerous “exempt” employees had their pay docked for unlawful reasons, such as partial-day absences
Quick Tip: Pay Now or Pay a Lot More, Later. Deductions of exempt employees’ pay are permitted only for whole-day absences for personal reasons, absences due to sickness and disability if made in accordance with a “bona fide plan, policy or practice” that provides such benefits, and for suspensions due to violations of major safety rules, as long as there is a published policy. Partial-day deductions are permitted when leave under the Family and Medical Leave Act is taken.
Violations of wage and hour requirements under the FLSA and Hawai`i state law can result in awards of back pay, interest, liquidated damages, civil penalties, and for flagrant offenders, even criminal prosecution. Employers are wise to review their pay/disciplinary policies for compliance.
Roman Amaguin, Esq.; romanamaguin@yahoo.com; www.amaguinlaw.com
By: ramaguin
