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Are You Exempt from Overtime Compensation?

Are You Exempt from Overtime Compensation?

Overtime paperwork

In every work environment, there are times when you will have more work to do than time would allow, and you result to working overtime. Overtime is considered the time that an employee works that is beyond the stipulated working hours or the usual working hours agreed between the employer and the employee. In California State, overtime compensation refers to the payment an employee receives for working more than 8 hours in a day or 40 hours in a week. The hourly rate of overtime pay is usually higher than the normal rate of payment.

Overtime compensation is a policy in California that applies to all weekly and hourly paid staff members who are non-exempted and whose employment is temporary, limited service or even regular full-time and part-time. The policy dictates that an employee cannot donate their services to a firm without being paid for those hours worked.

However, in California, there are employees who may be exempt from overtime compensation. Any other employee who is not excluded from overtime compensation should get paid or get compensated for overtime worked in a firm.

Here are some of the workers who may be exempt from overtime compensation in California:

  • An administrative exemption for someone who does over half of his or her duties directly for a business owner with limited oversight will be exempt. Your job shouldn’t be one in production position, and it should involve mainly operational matters and affect management policy.
  • If you are in the executive position as a CEO and operate as being part of the management team you also fall under this exempt class. You can manage a minimum of two people, and you’ve the power to promote hire or fire employees.
  • People who are professionals in that they are required to have an exclusive license so as to undertake their work may be exempt from overtime compensation. These are people whose jobs require skills and talents like doctors, lawyers and teachers.
  • Other people under this class are people who spend at least half of their time doing sales off the premises of the business. They commonly get referred to as outside salesperson and in most cases, they are paid on commission.
  • A caregiver is someone in this instance that is an in-home caregiver and is exempt from overtime compensation. In case you are one who works in a nursing facility or group home, you won’t fall in this category.
  • Lastly, professionals who spend more than half their time in design and analysis as computer professionals will also be exempt from overtime compensation. Within California, the laws relating to overtime payment are sometimes complicated, and one needs to study them well to know whether they are exempt from overtime compensation or not.

If you, or someone you know, are facing legal issues in the workplace United Employees Law Group has the answers. Call Today for your free and confidential case review. Please feel free to CONTACT US with any questions about this blog or your exact situation.


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