Rizio and Nelson California Law Blog

When you work in California, it is wise to know the state’s labor laws. They differ from the Federal laws under the Fair Labor Standards Act. They can be both stricter and more specific. One of the laws that affects many employees is the Exempt Employee Law. Exempt employees are those people that receive a specified amount for forty hours’ work without overtime, commonly known as people that are “on salary”. If you are searching for a particular job, it would be wise to find out if it is exempt. Some of the professions that are affected by this law are:

• Executive, Administrative, and Professional employees
• Employees in the computer software field
• Employees directly employed by the State or any political subdivision thereof, including any
  city, county or special district.
• Outside Salespersons
• Any individual who is the parent, spouse, child, or legally adopted child of the employer
• Drivers
• Union Employees
• Student Nurses
• Taxicab Drivers
• Airline Employees
• Carnival Employees
• Commercial Fishing Boat Crew members
• Professional Actors
• Motion Picture Projectionist
• Radio or Television Announcers, News Editors or Chief Engineers
• Sheepherders
• Irrigators
• Personal Attendants and Babysitters

While most of us are not shepherds or carnival employees, it is easy to understand why these types of professions would be exempt. They require long hours, often at odd times of the day, and some of them, like the commercial fisherman, work constantly. If you’ve ever seen the television show, Deadliest Catch, you’d understand. People in these professions are often well-compensated because they are not allowed overtime. It would not be financially feasible for the employer.

In the list of Exempt employees on the ca.gov website, one of the professions under Order 14 reads:
“Any employee who is engaged in work that is primarily intellectual, managerial, or
creative, and which requires exercise of discretion and independent judgment, and for which
the remuneration is not less than two times the monthly State minimum wage for full time
employment.”
This is very interesting because it could describe any number of professions. It leaves the door wide open for many employers to offer salary positions, especially to those who have degrees or certificates of education higher than the high school level.

However, employers must be careful, because sometimes a job could be labeled as “supervisory” yet not be exempt in that it doesn’t meet the definition of an executive position. There are six requirements for an executive position:
1.The job is that of a department manager
2.They are responsible for two or more people in their department
3.They have the authority to hire, fire, or promote the people in their department
4.They work independently and with discretion (as described under Order 14, above)
5.They are a professional in their field
6.Their monthly salary is equal to or greater than twice the state minimum wage for full-time employment

California labor laws can be very tricky. Make sure you have experienced lawyers on your side if you feel that your job has been labeled as exempt by your employer. You may be entitled to lost wages and overtime if it has been. Let the attorneys at Rizio and Nelson represent you.