Under The Fair Labor Standards Act (FLSA) and the California Labor Code, employees are entitled to receive overtime pay and other wage and hour benefits unless they are classified as “exempt” employees. Although employees must meet specific requirements under state and federal law to be classified as exempt, it is not uncommon for employers to mischaracterize employees’ job duties in order to avoid paying them overtime and other benefits.

There are three main categories of exempt employees: executive, professional, and administrative. The exact definitions of these categories vary state by state, but when state law differs from the FLSA, the U.S. Department of Labor requires employers to comply with the law which offers the employee the most protection. Under California law, executive, professional and administrative employees must earn at least two times the state’s minimum wage and must regularly exhibit independent decision making in their work. The following are some common exemptions, but these are not exhaustive of all possible exemptions under the FLSA.

Executive Exemption

In order to receive an executive exemption an employee must:

• Spend at least 50% of his/her time engaged in managerial duties.

• Regularly supervise at least two other employees.

• Have the authority to hire and fire other employees, or play a significant role in the firing and hiring process.

Professional Exemption

Employees receiving professional exemptions must:

• Be certified or licensed by the state of California and work primarily in one of the following fields: law, medicine, dentistry, optometry, architecture, engineering, teaching, or accounting; or

• Engage in creative work in an artistic field such as music, writing, or the theater; or

• Engage in intellectual work requiring specialized knowledge, usually obtained through an advanced course of study.

Administrative Exemption

Employees receiving administrative exemptions must:

• Work in an academic institution and engage in work directly related to the instruction provided by the institution; or

• Engage in non-manual work relating to the management policies or general business operations of their employer or the employer’s customers; AND

• Engage in work requiring specialized training under minimal supervision; or

• Perform special duties under minimal supervision; or

• Directly assist an executive or administrator.

Girard Gibbs LLP is a law firm based in San Francisco, California. Our employment lawyers are highly knowledgeable about employee rights under federal and California employment law, and actively pursue claims on behalf of employees whose rights have been violated. If you believe you have been improperly classified as exempt, or that your employee rights have otherwise been violated, please fill out the form below or call us toll free at (866) 981-4800 for a consultation without charge.

Important Note: This summary is intended to provide a basic overview of the typical types of employment cases handled by our firm. It is for informational purposes only and does not constitute legal advice.