Many people say that they are not eligible for overtime pay because their job or position is exempt employee. In particular,those who are called managers or receive salaries at work are often confused. Whether or not they are exempt employees varies from case to case, so a detailed review is necessary, but today we would like to introduce the general criteria.
Workers who fall under all three of the following are likely not eligible for overtime pay.
1. Do you earn a salary that is more than twice the minimum wage?
First, you must be paid on a salary basis. This means receiving a predetermined, fixed amount of pay that does not vary based on hours worked or the specific results of your work. To meet this criterion under California law as of 2022, you must earn at least $4,853.34 per month (for employers with 25 or fewer employees) or $5,200.00 per month (for employers with more than 25 employees).
2. Is your primary duty managerial, executive, or professional work?
If you meet the salary threshold, the next step is to examine the nature of your work. What matters is not your job title or what is written in your job description, but the actual duties you perform on a regular basis.
“Managerial” work refers to duties that directly relate to the operation of the business and are typically performed in an office setting. This includes roles in marketing, research, budgeting, accounting, procurement, and human resources. Roles that generally do not qualify as managerial include administrative assistants, retail floor staff, bookkeepers, and field supervisors.
An “executive” performs duties that involve managing a business or department, supervising two or more employees, and having the authority to make personnel decisions.
“Professional” work includes roles that require a California state license or an advanced degree such as a master’s degree, or work that involves artistic or creative duties.
Do you have the authority to make independent decisions?
To meet the third condition, you must regularly exercise independent judgment and make significant decisions without being closely supervised. This means you must not be simply following orders or having every step dictated by a superior.
Even if you do not meet these criteria, there are other job categories that may still be considered exempt from overtime. Examples include commissioned salespersons, doctors, computer professionals, private school teachers, and outside sales representatives.
Employers who wrongly classify non-exempt employees as exempt and fail to pay overtime may face serious legal consequences under California labor law. We hope this article helps you evaluate whether you have been improperly classified as an exempt employee and whether you may be entitled to unpaid overtime wages.
JUSTICE FOR WORKERS, P.C. is a law firm dedicated exclusively to representing plaintiffs, that is, workers, in matters related to labor law and workplace injuries. For a free consultation, please contact us at (323) 922-2000. We have offices located in both Los Angeles and Orange County. If we take on your case, you will not be required to pay us anything unless and until we secure compensation on your behalf.
