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Determining Exempt versus Non-Exempt Employees

by Jason Hashimoto, Esq., Employee Relations Specialist

It may be a shock to discover that yes, you do have to pay your receptionist overtime. Or do you?

The process of determining whether an employee is exempt or non-exempt can be confusing. But employers need to determine their employees' classifications in order to pay them in an appropriate, legally compliant fashion.

Being classified as "exempt" means an employee is not subject to either your state's labor code or the federally mandated Fair Labor Standards Act (FLSA). In short, it means the employee doesn't have to be paid for working overtime. To determine an employee's exempt status, your company must follow the more stringent of the regulations outlined by either your state's labor code or the FLSA. If your state doesn't have a labor code, then you must follow the FLSA.

This article will focus on California standards for determining exempt versus non-exempt employees. No matter where your company is located, you can follow California wage standards and be safe, because California has the strictest labor code in the country! More likely, however, you'll want to investigate the regulations that apply to your own state, since they may be more lax than those described here

In any case, the California rules for exempt and non-exempt employees will give you an idea of the issues at stake, and indicate the kinds of questions you'll need to consider in determining your employees' classifications.

What's the California state law regarding non-exempt employees?
California law requires that non-exempt employees be paid overtime for more than eight hours worked in a day, or more than 40 hours worked in a week.

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