What is the California Labor Commission Doing for YOU?
The memorandum of understanding (MOU) is a directive that has joined the U.S. Department of Labor (DOL) with California’s Labor and Workforce Development Agency (LWDA) in order to protect employees and create a more even system for regulating the classification of workers who are and are not eligible for overtime pay in CA.
California is not the only state to carry such an agreement with the U.S. Department of Labor. Other states such as Maryland, Massachusetts, Colorado, Missouri, Montana, Illinois, Montana, Utah, Connecticut, Hawaii and Washington have similar MOUs. Information is being shared between state and federal organizations in an effort to aid in education as well as helping to increase both state and federal revenue due to an increase in taxable income. By getting employees properly categorized as non-exempt, they will collect overtime pay, which is taxable and therefor the government makes more when you do.
The MOU was enacted partially as a result of multiple cases in which a company is based in one state and doing work in another. The idea being that an employer should not be able to have an office in one state and do work in another where the overtime requirements are higher just to avoid paying the workers the state mandated rate.
Attempting to avoid paying overtime by misclassifying employees as independent contractors is not a new problem, though it has been an even bigger issue as the country’s economy changed. By classifying an employee as an independent contractor the company avoids overtime, medical benefit expenses and more.
The key is to remember two things: One, in CA the burden of proof is on the employer. They must prove you were ineligible for overtime pay. Two, your actual job duties define your exempt status, not a choice made by the employer. You can read more about exemptions here.
There are many details when it comes to CA Labor Laws. At UELG we help people every day who have been cheated or harmed by their employer. CALL TODAY for a free and CONFIDENTIAL review of your situation.
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