Sacramento Unpaid Wages Lawyer

1. Exempt Employees: Exempt employees are NOT entitled to receive overtime pay, regardless of the number of hours worked beyond the regular work schedule. These employees are typically in executive, administrative, professional, or outside sales positions and must meet specific salary and job duty requirements to qualify for exemption.
   
   
2. Independent Contractors: Independent contractors are not considered employees and, as such, are not covered by traditional wage laws. However, it’s essential to note that misclassifying employees as independent contractors to avoid wage obligations is unlawful and subject to penalties.

Understanding the intricacies of employee classification and industry-specific exemptions is crucial for both employers and employees to ensure compliance with California’s wage laws.

A California exempt employee is one who is exempt from certain wage and hour laws, such as overtime pay, meal and rest breaks, and minimum wage requirements. Only employees that meet specific criteria are eligible to be “exempt” from overtime and other wage laws.

On the other hand, a California non-exempt employee is entitled to the full range of labor protections afforded by state law. In California, an employee is presumed to be “non-exempt” and entitled to overtime and other legal protections, meaning that unless the Employer can demonstrate proper application of the specific exemptions, the employee is non-exempt. Most hourly wage employees are non-exempt in California.

Exempt Employees:

Exempt employees are typically excluded from certain wage and hour regulations, such as overtime pay, meal and rest break requirements, and minimum wage provisions. It’s important to note that California has stringent regulations regarding exempt classifications, and misclassification can lead to legal consequences for employers. For the most accurate and up-to-date information, it’s recommended to consult an attorney or refer to the relevant legal sources.

In California, there are primarily three categories of exempt employees: executive employees, administrative employees, and professionals. Here are the general criteria and factors that are considered when determining whether an employee can be classified as exempt within these categories:

Executive Exemption:

To qualify for the executive exemption, an employee must generally meet the following criteria:

The employee’s primary duty is managing an enterprise or a recognized department/subdivision of an enterprise.  The executive exemption does not require the employee to be a “C-suite” officer so long as the employee is the top manager for a particular subdivision or separate office/location for the business. For instance, a Store Manager of a chain retail store or restaurant would likely qualify as exempt if the Store Manager has general oversight and responsibility for the retail location/restaurant.

Another factor for executive exemption is the employee regularly directs the work of two or more full-time employees or equivalent (including hiring, firing, and performance evaluations). In addition, the employee has the authority to make significant decisions that affect the business.  Generally, this means that the “executive” employee has the authority to directly (or indirectly) commit assets and resources of the company.

Lastly, the employee customarily and regularly exercises discretion and independent judgment.  This means that the executive employee has sufficient authority and discretion to operate the business on a day-to- day basis doing primarily management-related activities rather than working the line along with other subordinate workers.

Administrative Exemption:

To qualify for the administrative exemption, an employee must generally meet the following criteria:

The employee’s primary duty involves performing office or non-manual work that is directly related to the management or general business operations of the employer or its customers. Additionally, the employee’s primary duty includes exercising discretion and independent judgment with respect to matters of significance. Lastly, the employee’s work involves matters that are not routine or clerical in nature.

Professional Exemption:

To qualify for the professional exemption, an employee must generally meet the following criteria:

The employee’s primary duty involves performing work requiring advanced knowledge in a field of science or learning, customarily acquired through a prolonged course of specialized intellectual instruction.  Because the Professional Exemption requires “advanced knowledge,” to qualify as a “Professional” the employee must have an advanced degree or a professional license. The most common examples are doctors, lawyers, accountants, architects, etc. Another condition of professional exemption is if the employee’s work is predominantly intellectual and varied and cannot be standardized. Additionally, further criteria is if the employee’s work requires consistent exercise of discretion and judgment.

Non-Exempt Employees:

Hourly Pay: California non-exempt employees are generally paid on an hourly basis. They are entitled to receive at least the state’s minimum wage for all hours worked and overtime pay at a rate of one and a half times their regular rate for hours worked beyond 8 hours in a workday or 40 hours in a workweek.

Meal and Rest Breaks: Non-exempt employees are entitled to meal breaks of at least 30 minutes for every 5 hours worked and rest breaks of at least 10 minutes for every 4 hours worked.

Overtime: Non-exempt employees must be compensated for any overtime work, and employers must maintain accurate and contemporaneous records of their hours worked.

Labor Law Protections: Non-exempt employees are covered by various labor laws, including those related to working hours, meal and rest breaks, and other wage and hour regulations.

Overtime Pay Law:

California requires employers to pay overtime to eligible employees who work more than eight hours in a day or 40 hours in a week. Additionally, employees who work more than 12 hours in a day or over eight hours on the seventh consecutive day of work are entitled to double-time pay. This law protects workers from being denied fair compensation for the extra hours they put in.

Wage Statements:

California’s wage statement law requires employers to provide detailed wage statements to employees at the time of payment. These statements must include the total hours worked, the applicable rates of pay, any deductions made, and other relevant information. This ensures transparency and helps prevent employers from inaccurately reporting work hours or underpaying employees.

Retaliation Protection:

California labor laws protect employees from retaliation for asserting their rights to fair wages or reporting wage theft violations. Employers are prohibited from taking adverse actions against employees who exercise their rights under wage and hour laws.

PAGA Claim:

Under the Private Attorneys General Act (PAGA), an employee can bring a claim on behalf of the state to recover civil penalties for labor code violations. This can be an effective way to address wage and hour violations that impact multiple employees.

Negotiation and Settlement:

In some cases, it may be possible to negotiate a settlement with the employer outside of court. A well-prepared case and a strong negotiation strategy can lead to a resolution that compensates the employee for their unpaid wages.

Garnishment and Liens:

If your client obtains a favorable judgment or award, you can pursue wage garnishment or place liens on the employer’s assets to enforce the payment of the owed wages.

Collaboration with Government Agencies:

The California Division of Labor Standards Enforcement (DLSE) allows employees to file a wage claim directly with the Labor Commissioner’s Office. This process is generally quicker and less formal than a lawsuit and can result in the recovery of unpaid wages, overtime, and other owed compensation.