California labor law stipulates clear definitions of exempt and non-exempt employees. Yet overtime issues continue to result in employee lawsuits.
Proper Employee Classification is Essential for Employers
The defendant was alleged to have improperly classified its instructors as exempt from qualifying for overtime although they were required to take on non-exempt administrative tasks such as grading exams, submitting attendance reports and adhering to course outlines.
California labor law allows for certain employees to be considered exempt from overtime if they are engaged in administrative tasks while employed as supervisors, undertake management functions, or are salaried employees who achieve a certain income threshold.
The Case for Compliance With California Labor Law
Understanding the Recent Overtime Labor Law Changes Under the FLSA
The stipulations regarding overtime pay mandated in the Fair Labor Standards Act have been changed and the impact will be significant for states such as California. As a result of these changes, millions of workers will lose their current FLSA-exempt status on December 1, 2016.
The hardest hit industries are likely to be education, retail, health services, leisure, hospitality, and business and professional services. The Final Rule does not affect the outside sales or inside retail sales exemptions, which do not include a salary threshold, nor does it affect the current duties tests for the “white collar” exemptions.
Getting Expert Help to Stay Up to Date and In Compliance
An updated payroll compliance strategy will help your organization meet its obligations, while providing accuracy and timeliness. So take time to understand the laws, prioritize employee and manager salary changes, and maintain accurate record keeping. In this way, you will make compliance a sure thing.
Another key step in maintaining HR compliance and increasing your company's cost-effectiveness is to consider outsourcing. A professional payroll management and workforce solutions provider such as Accuchex can offer much-needed help with Human Resources needs and questions.
Accuchex is a full spectrum Payroll Management Services provider offering expertise in Time Management, Insurance and Retirement issues, as well.