[California] What is an exempt employee?
Employees have the right to receive a compensation for overtime work. By law, all employees are considered non-exempt employees who are entitled to overtime pay. However, there are eight types of employees who are exempted from overtime pay. If you visit the California Department of Industrial Relations website, you will find more information about exempted jobs.
Typically, workers who are exempted from overtime allowance are executives and professionals, and employers are not obligated to pay overtime to them. In addition, some artists and sales person can be considered as exempt employees. There is no need to provide meals and breaks nor time card recording obligation for exempt employees. In order to executive and managerial personnel to be exempt from the overtime pay, the following requirements must be met:
First, the roles and responsibilities of the worker must be related to the management of the enterprise and should be employed to assign high-level positions, usually known as the management of the enterprise. Officers should be tasked with directing authority on their work to two or more subordinates and being authorized to hire or at least advice on staff recruitment and dismissal. The position must normally and regularly have discretionary authority and makes independent judgments. These managerial jobs should be engaged primarily by employee. In other words, more than 50% of the total work should be managerial work. The Court will assess whether exempted workers spend more than 50% of their weekly hours on managerial work, which is the most important issue in the Court. It should be noted that an employer who is claiming exemption from overtime pay must prove that the employee is "engaged" primarily in jobs that are exempt from overtime pay, meal times and breaks.
Finally, they must receive the compensation as an annual salary, and the actual amount of salary that they receive must be at least twice the minimum salary based on the full-time employee salary. Note that the current minimum wage is now calculated to be equal to or greater than $ 913 a week or an annual salary of $ 44,776, therefore if employees are receiving less than $ 913 or an annual salary of $ 44,776, they are entitled to receive overtime pay.
Typically, workers who are exempted from overtime allowance are executives and professionals, and employers are not obligated to pay overtime to them. In addition, some artists and sales person can be considered as exempt employees. There is no need to provide meals and breaks nor time card recording obligation for exempt employees. In order to executive and managerial personnel to be exempt from the overtime pay, the following requirements must be met:
First, the roles and responsibilities of the worker must be related to the management of the enterprise and should be employed to assign high-level positions, usually known as the management of the enterprise. Officers should be tasked with directing authority on their work to two or more subordinates and being authorized to hire or at least advice on staff recruitment and dismissal. The position must normally and regularly have discretionary authority and makes independent judgments. These managerial jobs should be engaged primarily by employee. In other words, more than 50% of the total work should be managerial work. The Court will assess whether exempted workers spend more than 50% of their weekly hours on managerial work, which is the most important issue in the Court. It should be noted that an employer who is claiming exemption from overtime pay must prove that the employee is "engaged" primarily in jobs that are exempt from overtime pay, meal times and breaks.
Finally, they must receive the compensation as an annual salary, and the actual amount of salary that they receive must be at least twice the minimum salary based on the full-time employee salary. Note that the current minimum wage is now calculated to be equal to or greater than $ 913 a week or an annual salary of $ 44,776, therefore if employees are receiving less than $ 913 or an annual salary of $ 44,776, they are entitled to receive overtime pay.
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