Facts Every Employee Should Know
Federally mandated overtime pay was first established in the United States by the Fair Labor Standards Act (FLSA) of 1938. As is the case with the laws prohibiting discrimination, California has significantly expanded upon the overtime protections established by the FLSA. For example, the FLSA only requires that an employee receive overtime compensation after he or she has worked in excess of forty hours in a work week. In addition to the forty hour threshold established by the FLSA, non-exempt California employees are entitled to overtime compensation for any work performed after eight hours in a day. For example, an employee that is not exempt from the overtime requirements is entitled to one and one-half times(1.5x) their regular rate of pay after eight hours worked in one day and after forty hours in the same workweek. Additionally, employees are entitled to one and half times (1.5x) their regular rate of pay for each hour worked on the seventh consecutive day during the same workweek. Finally, an employee is entitled to two times(2x) their regular rate of pay for all time worked after twelve hours in any one day.
Many employees are confused and taken advantage of by employers regarding the issue of an entitlement to overtime compensation. It is important to note that the issue is not resolved by your employer designating you as a salaried employee or giving you a fancy job title. Furthermore, you cannot waive your right to overtime compensation under most circumstances. Union employees may waive overtime as part of a collective bargaining agreement. Accordingly, your employer will not prevail against a claim for overtime compensation by arguing that you waived overtime. In reality, the issue is resolved by an analysis of your salary and your specific job duties. (California Labor Code §§510 and 511).
In order to be exempt from the overtime requirements as an executive, administrative or professional employee, you must be receiving at least two times (2x) the minimum wage which is presently $10.50 per hour or $3,813.33 per month. Furthermore, the exempt employees duties primarily involve the performance of executive, administrative or professional functions. Finally, the an employee must regularly exercise independent judgment and discretion while performing the primary duties which qualifies them for the overtime exemption. Aside from the issue of the salary the employee is receiving, the analysis of whether an employee is exempt from the overtime requirements can be quite complex. Contact the Perrin Law Group today if you feel that your employer is not paying you the overtime compensation which you deserve.