California, employee misclassification is a widespread problem. According to a report by the California Labor Commissioner’s Office, approximately 30% of California workers are misclassified as independent contractors or salaried exempt employees, resulting in the loss of millions of dollars in wages, benefits, and taxes.
As an employee in California, did you know that you are entitled to overtime pay even if you are classified as salaried and exempt? Many employees in the state are misclassified as salaried and exempt, leading to the belief that they are not entitled to overtime pay. However, this is not the case in California. Under state law, salaried employees are entitled to overtime pay if they are not exempt from overtime requirements.
An employee is considered exempt if they meet certain criteria, such as performing certain types of work or earning a certain salary level. To be classified as exempt in California, an employee must meet all of the following criteria:
- They must be paid a salary, not an hourly wage.
- Their salary must meet the minimum threshold set by the state, which is currently two times the state minimum wage (currently $15.50/hour) or $64,480 per year, as of January 1, 2023. (Some cities and counties have a higher minimum wage that the state’s rate.)
- They must perform specific types of work that are considered exempt under state law. This includes executive, administrative, professional, and outside sales positions.
It is important to note that just because an employee is paid a salary, they are not automatically exempt from overtime pay. Employers must also consider the employee’s job duties and responsibilities to determine if they are exempt.
Another misconception is that people who are classified as salaried employees are not entitled to meal and rest breaks. Workers who are misclassified as salaried employees are entitled to meal and rest breaks under California law. When an non-exempt employee does not receive those meal and rest breaks, the employer is required to pay a 1 hour premium.
If you believe you have been misclassified and denied overtime pay, meal and rest breaks, or other rights and benefits to which you are entitled, document your job duties and hours worked, and seek legal advice. It is important for employees to understand their rights and responsibilities under California law to avoid misclassification.
Contact Salusky Law
If you have questions about your whether you have been misclassified, reach out to Salusky Law Group for a free consultation at (562) 855-0004 or complete the form: