The
law classifies employees into two separate categories: exempt and non-exempt. In general, an exempt
employee will be exempt from certain laws as prescribed by the California
Labor Code. The guidelines in the Labor Code were established by the state’s
Industrial Welfare Commission, and these delineate the various laws and
the exemptions that come with it.
Narrowing the Gap Between Employees
There is a perceived gap between exempt and non-exempt employees. Let us
clarify some of these concepts. Exempt employees typically have a higher
degree of responsibility; however, these employees carry many exceptions
to the law. In turn, non-exempt employees are typically paid on an hourly
basis and have many considerations under the laws, such as being owed
overtime pay.
Non-exempt employees are classified due to the following:
- Typically paid based on a 40-hour work week
- Must be paid the minimum hourly wage and be given overtime pay
- Overtime pay must be paid at one and a half times their current pay rate
- Workers are typically paid per hour
Exempt employees are classified by the following:
- Generally have a high degree of responsibility on their list of job duties
- Must be paid a salary—at least $23, 600 a year ($455 a week)
- Performs “exempt “job duties, as either a professional, administrative,
or executive
Executive exemptions include:
- Supervises at least two employees
- Has the power to hire, promote, and terminate employees
- Is paid a salary that is at least double the minimum wage for a full-time employee
Administrative exemptions include:
- Performs job duties that assist in the day-to-day operations of the company
- Uses discretion and judgment for tasks
- Possesses specialized education or training
- Is paid a salary that is at least double the minimum wage for a full-time employee
Professional exemptions include:
- Holds a license or certification issued by California
- Works in teaching, accounting, medicine, dentistry, law, architecture,
or optometry
- Has unique or advanced knowledge in their skill or craft
- Uses discretion and independent judgment
- Is paid a salary that is double the minimum wage for a full-time employee
What characterizes a non-exempt employee from an exempt employee depends
on a variety of factors. The requirements will also vary depending on
the role the employee has within the organization and the industry. However,
these classifications are also important to ensure that employees are
fairly compensated.
If you have any questions, or you believe you have not been classified
correctly, please do not hesitate to contact a Hollister employment lawyer.
The wrong classification can deny an employee their rights, so be sure
that you discuss your situation with us to determine that the correct
exemptions are applied to your position.
Contact Marder Employment Law today to schedule a
free appointment.