Misclassifying an employee as exempt when they should be non-exempt can have serious legal and financial consequences for employers, including: Back Pay for Unpaid Overtime Fines and Penalties from the Department of Labor Employee Lawsuits Reputational Damage Common causes of misclassification include re...
Rather than take unpaid time off, a nonexempt employee may choose to use their accrued vacation or paid time off (PTO). An employer cannot require the use of vacation or PTO (California Labor Code Section 230 (i)). Exempt Employee Pay In general, if an employee is exempt and pe...
Avoid salary deductions that jeopardize the employee’s exempt status. Stay updated on state-specific exemptions and wage thresholds. Implement periodic audits of employee classifications, especially when job roles evolve. Misclassifying employees can result in back pay for unpaid overtime, legal penaltie...
In California, employers must provide30-minute unpaid breaksto nonexempt employees who work at least 5 hours per day. If the employee works 6 or fewer hours, then the employer and employee can agree to waive the break if both parties provide written consent. ...
Generally, you can use PTOwhenever you want. Some companies have specific limits for time off (paid and unpaid) broken out into different categories such as sick time, personal time, and vacations. Other companies just grant employees a set amount of PTO to use anytime they are unable to ...
An employer cannot deduct salary because the company closed due to inclement weather or because the employee took a partial day off. Exempt salaried employees receive full salary unless a permissible deduction applies, such as overuse of benefit days and unpaid suspension. When allowable deductions ...
In some cases, an employee may even be asked to sign an employment contract “agreeing” to be exempt from overtime requirements–and then be asked to perform a large amount of“work off the clock.” However, under California wage and hour law, none of these factors will make a non-exem...
Joseph worked 6 hours of overtime this week but has decided to take time off instead of overtime pay. How many hours will Joseph receive in time off from work? A) 3 hours B) 6 hours C) 9 hours D) 18 hours How many weeks may an employee take a...
It allows them to request overtime or “off the clock” work without paying more for it. In some cases, they include a provision in their employment contract that purportedly makes an employee exempt. However, California employment law determines whether you are exempt or not. Your employer ...
These differences typically determine whether or not an employee is subject to state and federal laws that dictate rules with regard to overtime pay, meal and rest breaks and paid time off. A large number of employment lawsuits stem from disputes that arise from these classifications. Many employ...