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Library - Employment Law
Wage Claims, Overtime & Other Employee
Compensation
ARE
ACCOUNTANTS UNLICENSED AS CPAs ENTITLED
TO OVERTIME PAY?
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Q:
I have worked as a
staff accountant for a company in downtown Los Angeles
for the last 5 years. I am not a Certified Public
Accountant. I have prepared billing statements and
invoices for the company’s clients, including additional
clerical, bookkeeping, data entry and general law office
tasks. I have consistently worked between 9-10 hours a
day and occasionally work on a weekend. I have received
a monthly salary but had not been receiving any
compensation for overtime. Am I entitled to overtime
payment from my employer? |
A:
It appears you are entitled to overtime
payments for those days you worked in excess of 8 hours per day or
times that you worked in excess of 40 hours per week.
There are two types of employees – the exempt and the non exempt
employees. The distinction is important because the former is
“exempt” from the payment of overtime while the latter is entitled
to these payments. In order to be truly exempt from overtime
payments, the employees must be correctly classified under the
Professional, Administrative or Executive exemptions.
Employees exempt under the professional exemption must be: (1)
licensed or certified by the State and engaged in the practice of
law, medicine, dentistry, pharmacy, optometry, architecture,
engineering, teaching, or accounting (or engaged in a learned or
artistic professions); (2) engaged in work which is primarily
intellectual, artistic, creative or requiring advanced knowledge;
(3) assigned a job that requires the exercise of discretion and
independent judgment. (4) paid at least twice the state’s minimum
wage for full time employment.
To fall under the administrative exemption, an employee must be:
(1) paid at least twice the state’s minimum wage for full time
employment; (2) charged with the performance of office or non-manual
work directly related to management policies or general business
operations; (3) regularly exercising discretionary and independent
judgment; (4) regularly assisting a proprietor or an executive or
administrative employee; and (5) working only under general
supervision special assignments and tasks.
For executive exemption to apply, an employee must be: (1) paid at
least twice the state’s minimum wage for full time employment; (2)
assigned as primary function the management of the business; (3)
responsible for regularly directing the work of 2 or more
subordinates; (4) has the authority to hire, fire, give pay
treatment or recommend such actions; (5) regularly and customarily
exercises discretionary powers; and (6) devoting less than 50% of
work time to non-managerial duties.
Classifying employees as exempt simply by conferring titles such as
manager, supervisor, senior accountant, specialist or vice-president
does not automatically mean that the particular employee is not
entitled to overtime payments. In the case that our law firm
prosecuted on behalf of staff accountants who were not paid
overtime, the defendant company engaged in a similar practice. The
civil action eventually resulted in the recovery of back wages for
all misclassified employees for the last 4 years. The lawsuit also
changed the way the company did business by ceasing its practice of
misclassifying its “accountant” employees.
However, other employers have continued to incorrectly classify
employees in order to avoid paying overtime compensation. If an
employee believes that he or she does not fall under the exemption
based on actual responsibilities in the work place, it is smart for
that employee to consult with an experienced employment attorney.
©
Law Offices C. Joe Sayas, Jr.
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