As per the California Law, in case of ” non exempt employees”, the employer has certain responsibilities like paying for overtime and meal expenses. In case of ” exempt” employees, there are no such rules. In order to claim exemption, it is up to the employer to prove that the employee is exempt. Here are some of the most common exemptions under the California Law:

1. Managerial Exemption: In order to claim Managerial Exemption, the employee must meet the following points:i) The employee must have managerial responsibilities in one of the department or sub division of the enterprises.
   ii) The employee must be in charge of supervision of at least two employees.
   iii) Employee has the authority to hire a person or fire a person.
   iv) Employee frequently takes important decisions while performing his or her duties.
   v) The monthly salary of the employee should be at least 2 times more than the minimum wage of the state.

   2. Administrative Exemption:

   In order to claim this exemption, the employee must meet the following requirements:

   i) Employee spends majority of the time in work which is related to the normal business operations.
   ii) Employee always works under the supervision of a manager.
   iii) The monthly salary of the employee should be at least 2 times more than the minimum wage of the state.

   Computer Professional Exemption:

   In order to qualify for this exemption, the following guidelines has to be met:

   i). The employee must spend majority of the time in any one of the following works:
   a) Interacting with the users in order to improve the existing hardware and software systems.
   b) Involved in the design, development and testing of the various computer programs.
   ii) The employee must be extremely skilled and well aware about the different computer systems and their application.
   iii) The hourly wage of the employee must be above the minimum limit.

   4. Inside sales employee: In order to claim exemption under this head, the following guidelines must be met:

   i) The wage of the employee must be more than 1.5 times the minimum wage limit of California.
   ii) Majority of the compensation of the employee must be in the form of commissions.

2. Outside sales employee: In this case, these are the following guidelines which must be met:i) Must be at least 18 years of age.
   ii) The employee must spend majority of the time working in locations outside the place of the business.
   iii) Must be involved in selling only tangible items.

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   Photo Credit: Shutterstock/ goodluz

The post California Overtime Exemptions appeared first on UELG.

Increasing work hours today has led to the concept of overtime payment worldwide. Employees across the globe who work overtime exceeding the regular work hours are compensated in the form of overtime payment subjected to rules and regulations set by the company. In California which is witnessing rise in overtime activities, there has been much debate about how to ensure that the employees are eligible for the overtime payment or not.

According to the country guidelines and laws, most of the employers in California are subjected to pay overtime wages to their workers and employee. The payment is considered to exactly 50 percent of the individual’s hourly salary which in legal terms means “time and a half” payment. Usually anything above 40 hours a week or 8 hours daily is considered to be overtime in California. But not every employee or worker is entitled to overtime payment; certain laws of overtime exemptions have been set in California to ensure that the individual not eligible is exempted from the overtime payment. Let’s look at three most important categories of overtime exemptions in California.

Professional Exemption

Employees who are majorly working in a field of science or research that requires advanced and deep knowledge are usually considered exempted from the overtime. Also, individuals who are involved in creative work like innovation, invention, art or talent are also subjected to professional exemption. There are usually three different listings of professional exemption which includes learned professional exemption, creative professional execution and computer professional execution. In case of learned and creative professional execution employees receiving a weekly salary of $800 and spending more than 50 percent of time behind advance studies or creative works are not paid for overtime, while computer professionals are not usually considered for overtime according to overtime exemptions in California.

Executive Exemption

An employee of an executive post who looks after and manages a department, enterprise or a certain assigned division and has the authority and power to recruit and fire other people is not considered for overtime payments. It also incorporates employees who earn more than $800 weekly, spend 50 percent of their entire time managing the owner’s company and supervising at least two other individuals.

Administrative Exemption  

The criteria set for employees to be exempted from overtime under administrative exemption includes an individual who is earning more than $800 weekly and performs a certain set of work directly related to the business management. Along with discretion power the employee should also be paying pivotal role in making independent decisions in case of important business issues including operations management and business policy making.

Photo Credit: Shutterstock/michaeljung

The post Overtime Exemptions in California and the Ground Rules appeared first on UELG.