Posted on April 23rd, 2020
Federal and California labor law provides employees with basic rights, the likes of meal periods, overtime and minimum wage.
With that said, there are some very restrictive rules in California that are tough on employers, hence that’s why there are things like California overtime exemptions.
California provides its workers with better protection as compared to its FLSA counterparts. The most common type of exemptions is the white-collar ones which apply to executive, administrative and professional employees.
Exceptions to the rule, such as these, work to help employers avoid having to provide overtime and minimum wage to certain employees.
Let’s take a closer look at the 3 main white-collar exemptions:
Executive Exemption:
For the application of this exemption to happen, an employee must have responsibilities and duties that involve direct enterprise management where they’ve been employed or are customarily recognized in the department.
They should also regularly and customarily direct work that’s been done by at least two employees or more.
You should also be able to both fire and hire, or command some power to recommend and suggest the promotion, hiring, firing or other employee status changes.
Plus, you should be able to regularly and customarily exercise independent judgment and discretion.
Lastly, you must primarily engage in duties that meet this exemption test, which basically means spending more than fifty percent of your time at work doing exempt work
Administrative Exemption
For administrative exemptions to apply, employees must have responsibilities and duties that involve either; the performing of non-manual or office work that’s directly related to policy management or the general business operations, or performing administrative functions in a school system or educational institution/establishment.
And just like with executive exemptions, you need to primarily engage in duties and tasks that meet this exemption test as well as regularly and customarily exercise independent judgment and discretion.
You also need to be taking home a monthly salary that’s not below 2x the full-time employee state minimum wage.
That number, in 2019, would be around $45,700 per annum, for those working with small employers, and $49,900 per annum for those working for larger employers.
Professional Exemption:
In order for professional exemption to kick in, you need to be an employee that has a State of California certification or license and primarily engages in one of the following professions:
- teaching
- accounting
- architecture
- optometry
- engineering
- law
- dentistry
- medicine
If you primarily engage in work that’s commonly recognized as an artistic or learned profession, then you also qualify. Plus, you need to be earning a monthly salary that’s not below 2x the full-time employee state minimum wage, just like is seen with administrative exemptions.
Who Falls into California Overtime Exemptions
Wondering if you fall into exemption requirements? Check out the categories below to see which professions are exempt.
Computer Professional
Employees that ply their trade in the world of computer software, and those that primarily engage themselves in work that’s intellectual or creative and requires the exercise of independent judgment and discretion, are exempt.
Outside Salespersons
Both minimum wage and overtime requirements don’t apply to people, outside salespersons, that are 18 years and above who regularly and customarily use more than fifty percent of their time at work away from the location of the business where they’ve been employed selling tangible/intangible goods.
This also goes for obtaining contracts and orders for services, products or the use of facilities.
Sheepherders
You read right. Even sheepherders can be deemed overtime exempted under California State Law.
We aren’t too sure why right now, however, if you’re planning on getting into the industry, you better think long and hard before you do so.
Members Of Employees’ Families
Legally adopted children, children, parents, and spouses of employers are exempt from overtime under California wage law as well.
Employees Receiving Sales Commission
Certain people are exempt if they ply their trade in a mercantile industry or hold professional, mechanical, clerical, technical or similar titles.
Other people that are exempt under this rule are those of you that; sell services and property, earn a monthly income that’s more than the minimum wage of California by one and half time or if more than 50% of the compensation they earn is gotten from the commission.
Motor Vehicle Drivers
Certain interstate truck and trailer drivers are California overtime exempted.
Even the drivers that happen to solely drive intrastate are not spared and may be exempt if the deliveries they’re making are the continuation of a journey that started interstate.
This is also true if there’s a possibility that they could reasonably be relied on to make runs interstate.
Private School Teachers
Those teaching in kindergarten and private schools through to grade twelve are exempt from overtime under California State Law.
But, this exemption doesn’t apply to vocational instructors, daycare providers, student teachers, instructional aides, teaching assistants, tutors or other similar employees.
Union Employees
Another group of people that can sometimes be exempt from overtime laws in California are Union employees.
For one to qualify as overtime exempt, they must have been employed through collective bargaining agreements that have expressly provided the working conditions, work hours and wages of the employees.
These collective bargaining agreements must also offer premium wages for all hours worked overtime as well as regular hourly pay rates of at least 30% more than the California minimum wage.
Surgeons And Physicians
Licensed surgeons and physicians are exempt sometimes because of factors involving overtime compensation.
For one to fall under this particular exemption, the surgeon or physician must perform tasks that need their licenses and they need to be paid at least fifty-five dollars an hour.
This exemption, in particular, has limited applicability. Medical residents and interns don’t qualify. Physicians that are under certain collective bargaining agreements may also be exempt.
Wrapping Up
The California overtime exemptions aren’t too complicated and can be fully understood in no time at all. Hopefully, this article has shown you why.
So, now that you’ve gotten a slight idea of what it’s all about, you might be wondering whether you’ve got a decent case on your hands.
Why is this question important? Well, because if you do actually have a solid case then you just might be entitled to compensation from your employer.
If you’re not sure, feel free to contact us today for more information on your potential case and how we can help.
