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A Manager May Still Be Entitled To Overtime Pay

| May 14, 2013 | Firm News |

If your employer has give you the title of  “Manager,” but you spend almost no time managing people, you may be eligible for overtime pay.

As a cost-cutting measure, many employers use job titles, such as “Manager” for their lower level employees to avoid paying them overtime.   This being said, employees in these job titles who do not regularly supervise 2 or more full-time employees may be eligible for overtime pay.

In determining whether an employee is primarily engaged in exempt work, the California’s Labor Commissioner examines the work performed by the employee during the workweek.

Salary Consideration:

Exempt employees in California generally must earn a minimum monthly salary of no less than two times the state minimum wage for full-time employment (California’s current minimum wage is $8.00 per hour). Simply paying an employee a salary does not make them exempt, nor does it change any requirements for compliance with wage and hour laws.

Duties and Responsibilities

Executive: To qualify for the “executive”  exemption, employees must manage the operations of a business, department, or subdivision within the company. They must direct and supervise the work of at least 2 employees and have the authority to hire, fire, and promote. Typically, employees meeting these conditions include your Vice- Presidents, Directors, and Chief Executive Officers.

Administrative: To qualify for the “administrative” exemption, employees must exercise independent judgment performing non-manual work that is directly related to business operations. Typically, employees falling under the administrative exemption category include office managers, insurance agents, human resource professionals, and marketing personnel.

Professional: Employees who qualify for the “professional” exemption must have advanced knowledge in a field of science or learning through prolonged course of instruction (i.e. university, college, law or medical school). Occupations that require prolonged study include doctors, lawyers, dentists, professors, accountants, and the like.

Outside Sales:  To successfully qualify for the “outside sales” exemption the employee’s primary duties should involve making sales away from their employer’s physical place of business.  Inside sales would not qualify.

If your employer has incorrectly classified you and owes you overtime pay, please call California Employment Attorney, Todd M. Friedman for a free consultation.

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