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Library - Employment Law
Wage Claims, Overtime & Other Employee
Compensation
WHEN
SALARIED EMPLOYEES BECOME ENTITLED TO ADDITIONAL WAGES
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Q:
My employer pays
me a monthly salary of $1,800 a month. I work from 8:00
AM to 6:00 PM. Sometimes, I am asked to work for 4 hours
on Saturdays. Am I entitled to additional payment? |
A:
Yes. You may be entitled to overtime pay
if you are not employed in an administrative, executive, or
professional capacity. Only these job functions are exempt from the
State’s overtime laws.
An employee’s
executive-sounding title does not necessarily mean that an employee
performs executive functions. For executive employees to be
exempt, they must meet the following conditions:
1. Their
salary is at least twice the state’s minimum wage for a full-time
employment (or at least $2,560 per month in California).
2. Their primary job function is management of the business.
3. Their job regularly directs the work of 2 or more
subordinates.
4. Their job includes the authority to hire, fire, and decide
or make recommendations about the salaries or wages of other
employees.
5. They regularly and customarily exercise discretionary
powers.
6. They devote more than 50% of their work time to managerial
duties.
An
administrative employee is exempt from overtime if he or she
meets the following conditions:
1. Pay is at
least twice the state’s minimum wage for a full-time employment (or
at least $2,560 per month in California).
2. Primary job function is management of the business.
3. Regularly exercises discretionary and independent judgment.
4. Regularly assists a proprietor or an executive or
administrative employee.
5. Works only under general supervision special assignments
and tasks.
A
professional employee is someone who is primarily engaged in
intellectual, artistic, or creative work or someone engaged in work
requiring advanced knowledge. Additionally, they exercise discretion
and independent judgment in the conduct of their work. If the
employee is licensed or certified by the State and is engaged in the
practice of law, medicine, dentistry, pharmacy, optometry,
architecture, engineering, teaching, or accounting, or is engaged in
a learned or artistic profession, then he or she is considered a
professional. Such an employee should be paid not less than $2,560
per month.
However, a
registered nurse is not considered an exempt professional employee
unless he or she is an administrative, executive or professional as
defined above. In the same vein, a “staff accountant” who is not a
CPA and performs only billing, clerical, data entry and general
office tasks cannot be considered an exempt professional.
Some
employers misclassify and make their employees salaried 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, that employee should consult
with an experienced employment attorney.
©
Law Offices C. Joe Sayas, Jr.
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