California Overtime Exemptions

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As per the California Law, in case of ” non exempt employees”, the employer has certain responsibilities like paying for overtime and meal expenses. In case of ” exempt” employees, there are no such rules. In order to claim exemption, it is up to the employer to prove that the employee is exempt. Here are some of the most common exemptions under the California Law:

  1. Managerial Exemption: In order to claim Managerial Exemption, the employee must meet the following points:

    i) The employee must have managerial responsibilities in one of the department or sub division of the enterprises.
    ii) The employee must be in charge of supervision of at least two employees.
    iii) Employee has the authority to hire a person or fire a person.
    iv) Employee frequently takes important decisions while performing his or her duties.
    v) The monthly salary of the employee should be at least 2 times more than the minimum wage of the state.

    2. Administrative Exemption:

    In order to claim this exemption, the employee must meet the following requirements:

    i) Employee spends majority of the time in work which is related to the normal business operations.
    ii) Employee always works under the supervision of a manager.
    iii) The monthly salary of the employee should be at least 2 times more than the minimum wage of the state.

    Computer Professional Exemption:

    In order to qualify for this exemption, the following guidelines has to be met:

    i). The employee must spend majority of the time in any one of the following works:
    a) Interacting with the users in order to improve the existing hardware and software systems.
    b) Involved in the design, development and testing of the various computer programs.
    ii) The employee must be extremely skilled and well aware about the different computer systems and their application.
    iii) The hourly wage of the employee must be above the minimum limit.

    4. Inside sales employee: In order to claim exemption under this head, the following guidelines must be met:

    i) The wage of the employee must be more than 1.5 times the minimum wage limit of California.
    ii) Majority of the compensation of the employee must be in the form of commissions.

  2. Outside sales employee: In this case, these are the following guidelines which must be met:

    i) Must be at least 18 years of age.
    ii) The employee must spend majority of the time working in locations outside the place of the business.
    iii) Must be involved in selling only tangible items.