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Total Articles: 8

Court May Make Reasonable Inferences about Employee’s Exempt, Non-Exempt Activities

A trier of fact can make reasonable inferences about employees’ duties to determine status for overtime pay under California labor law, the California Court of Appeal has ruled, affirming the trial court’s holding. Batze v. Safeway, Inc., No. B258732 (Cal. Ct. App. Apr. 4, 2017).

It Ain’t Over Till It’s Over – California Bill Would Increase Overtime Exemption Salary Threshold

Employers nationwide breathed a collective sigh of relief when a federal district court judge in Texas enjoined the U.S. Department of Labor’s (USDOL’s) implementation of new minimum salary threshold requirements for the executive, administrative and professional overtime exemptions under federal law. However, that respite may be short-lived for employers here in California. Legislation just introduced in the California Legislature would raise the salary thresholds for these overtime exemptions under California law to the same levels that were proposed by the Obama administration.

Minimum Pay for Exempt Computer Professionals and Hourly-Paid Physicians Set for 2017

On October 5, 2016, the Director of California’s Department of Industrial Relations set new minimum pay rates for next year for certain professionals exempt from overtime. Effective January 1, 2017, exempt computer professionals must be paid at least $42.39 per hour, or a minimum salary of $7,359.88 monthly or $88,318.55 annually.

California Corner: Misclassification—What Do Managers Do? They Manage, Unless They’re in California.

Store managers are typically classified as exempt from overtime based on what is known as the "executive" exemption. The California Wage Orders set out a six-part test for this exemption, but in basic form, the test asks whether the employee: manages a department or unit; directs the work of other employees; has authority over personnel decisions; exercises discretion or independence in making decisions; spends a majority (more than 50 percent) of his time engaged in managerial duties; and makes a salary above a certain level. Pretty clear that a senior management person in a retail environment would fit the bill, right? Not necessarily.

California Corner: There's a Classification for That—Recent Cases Challenge Whether Application-Based Service Platforms Misclassify Independent Contractors

As the number of services offered to consumers through applications ("app" or "apps") on their tablets and smartphones continue to expand, the companies that are profiting from them are facing a series of lawsuits that may redefine how they (and others) do business. These cases are not the first instance—and will undoubtedly not be the last—where wage and hour laws lag behind technological advances. Mobile apps such as Uber, Lyft and Sidecar have taken a number of markets by storm, revolutionizing the way consumers request, track and pay for taxi and "black car" rides. TaskRabbit, meanwhile, is an app attempting to redefine the way consumers complete their "to do" lists by enabling them to arrange for someone else (the "Tasker") to perform a number of different tasks such as cleaning, shopping or making deliveries. With an ever-growing number of people earning a living by serving as someone else's "private driver" or errand runner, the question being asked is whether these companies should be classified as employees or independent contractors. The answer may well determine whether certain businesses survive and/or prosper.

[CA] State High Court Clarifies Administrative Employee Exemption

On December 29, 2011, the California Supreme Court issued its long-awaited decision in a case involving the application of the “administrative/production dichotomy” in determining if an employee meets the requirements for the administrative employee exemption from overtime under the California Wage Orders.

DLSE Issues Guidance On Deductions.

On November 28, 2009, the Division of Labor Standards Enforcement (DLSE) issued an opinion letter which should help shed some light on an area of the law which has long plagued California employers due to its ambiguity -- namely, under what circumstances may employers make deductions from exempt employees' salaries without running afoul of the law?

Start Me Up: New Case holds Start-Up Company Employee Qualifies for Administrative Exemption.

In California, unless specifically exempted, an employee is presumed to be non-exempt and subject to the provisions of the applicable Wage Order. Perhaps the most frequently mentioned exemptions are the "white collar" exemptions involving executive, professional, and administrative occupations. A white-collar exemption exempts an employee from entitlements under many sections of the Wage Order, including meal & rest periods, recordkeeping, and the minimum wage and overtime provisions.