Misclassification and Off the Clock

The State of California has gone to great lengths to be one of the most pro-employee states in the country. Our minimum wage is one of the highest in the country and our overtime laws are also of the most generous. Still, with our high cost of living and our current economic hardship, employees are not in a position to turn down work even if the employer is making unreasonable demands. Luckily the statue of limitations for some employment related issues can be as much as four years.

Federal labor laws can be found in the Fair Labor Standards Act (FLSA) and are the foundation for California’s more employee friendly labor laws; namely overtime laws.

FLSA requires that overtime rates of 1.5 times the regular rate of pay be paid out after 40 hours a week for all non-exempt or hourly employees. Whereas, California labor laws require the same but also require that overtime be paid out after 8 hours in a day and double time, or two times the regular rate of pay, after 12 hours in a day.

Because overtime can become costly, the employer may try to avoid overtime by pressuring the employees to work off the clock or even try to classify them as a salary or exempt employee. Exempt employees are not required to be paid an hourly wage or overtime under the law. However, a company cannot make just anyone salary.  California labor laws have specific qualifications that must be met. These qualifications are called exemptions. It’s important to note that the job title you hold has nothing to do with whether or not you will be classified as exempt from overtime, but rather the job duties you perform.

Labor law is complex; if you have any questions regarding your employment it is recommended that you contact a California labor law attorney who can help you understand your rights and in many cases will review your situation without charge.

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