KPI HR
Navigate the world of HR KPIs to measure and enhance your human resources management effectiveness and align with organizational goals. Understand the vital role of KPIs in achieving fair compensation and strategic HR outcomes.
By Brad Nakase, Attorney
Email | Call (888) 600-8654
Get Smarter: Search my blogs
Some people enjoy working overtime because that means more money. However, many do not know when or how much he or she is entitled to for working over his or her normal shift. A normal work week is considered 40 hours a week, working eight hours a day. A 40-hour work week is considered full-time making eight hours a day a normal work day. Anytime worked after these eight hours is considered overtime. However, overtime is not allotted to all employees. This article explains when overtime is given and to whom.
In order to determine whether an employee is entitled to overtime, it must first be decided what category the employee falls into: exempt or non-exempt. Non-exempt employees usually receive more benefits than that of an exempt employee including overtime.
In California, it is usually agreed employees have the right to:
However, this usually applies to non-exempt employees. There are certain times when an employee is not entitled to these benefits and will be labeled as exempt employees. In order to be exempt, the employee must meet certain requirements. These include:
In order for an employee to be exempt from minimum wage, he or she must be making twice the California’s minimum wage. For example, if your employer has 30 employees and the year is 2019, you must be making at least $24/hour to be qualified as an exempt employee. If you are making less, you will be considered a non-exempt employee.
If the minimum wage requirement is met, the next factor to analyze is whether the employee makes his own judgment while working; specially, does this employee assert his or her control or does the employer inherently have the control?
Control arises when an employee can usually set his or her own time, use his or her own equipment, and finish the task at hand as he or she sees fit. California has several tests it utilizes and follows in order to determine whether the employee asserts his or her own control.
The first is the manner and means test. The court will not look at whether an employee is labeled an employee or an independent contractor (exempt employee). Instead, the court looks at:
If an employee meets most of the above factors, he or she will be considered to make his or her own judgment.
In order to determine whether an employee is exempt under overtime wage laws in California, the court may also look at the anti-discrimination test. Here, the court will analyze whether the employee:
If an employee meets these requirements, they will be deemed exempt and not be covered by minimum wage laws.
this test is usually used in federal courts versus state courts to determine whether an employee is exempt or non-exempt. Here, the court looks at the totality of the circumstances of the relationship between the employer and employee.
The court will analyze a few factors:
If the court finds the employer did in fact have more control than the employee in the above factors, the employee will be deemed non-exempt and be entitled to the minimum wage laws in California.
If the court finds the employee is non-exempt, the employer can treat his or her employee as exempt and the employee, unfortunately, cannot benefit from overtime or breaks. Although the employer may be paying the employee double minimum wage, the employer has an arguable more productive staff because breaks are not entitled and an employee cannot ask for overtime.
Have a quick question? We answered nearly 2000 FAQs.
See all blogs: Business | Corporate | Employment Law
Most recent blogs:
Contact our attorney.