What is the Difference Between an Exempt and Non-Exempt Employee?

California employees are often labeled exempt or non-exempt when they are hired. That classification affects important wage and hour rights, and an employer cannot pick a label simply because it is convenient.

If you believe your employer classified you incorrectly, LNN can review your pay and the work you actually performed. Our lawyers can explain whether California wage laws may give you a claim.

What Non-Exempt Status Means in California

A non-exempt employee is generally protected by California overtime rules. California Labor Code § 510 requires overtime in many cases after eight hours in a workday or 40 hours in a workweek. Non-exempt workers also generally receive meal and rest break protections, and Cal. Labor Code § 512 requires a meal period of at least 30 minutes after more than five hours of work, subject to limited exceptions. California wage orders separately require paid rest periods for covered workers.

Those protections can include:

• Overtime pay for qualifying extra hours
• Double-time pay in qualifying circumstances
• Meal periods during qualifying shifts
• Paid rest periods during qualifying shifts

The exact rules can depend on the employee’s industry or schedule.

California Exempt Employee Salary and Duties Test

California generally applies a two-part test for the common white-collar exempt employees, and Cal. Labor Code § 515 establishes those requirements. The worker must be paid on a salary basis, and the worker must also actually perform exempt duties. On pay, the threshold sits at twice California’s minimum wage for full-time work.

The duties side looks at the work actually performed, because California asks whether the employee is primarily engaged in exempt work, meaning more than half of working time. A job title does not decide it. Calling someone a manager is not enough when that person spends most of the week on non-exempt tasks, and a high salary is not enough either.

What Can a Misclassified Employee Recover?

A worker wrongly treated as exempt may be owed unpaid overtime. The employee may also seek meal or rest period premiums when the facts support it. Other unpaid wages may be recoverable, and interest or statutory penalties may apply in some cases.

Pay stubs and time records often show what actually happened. Your own record of hours worked helps too, especially where the employer’s timekeeping is incomplete.

Talk With Our California Employment Attorneys About Misclassification

If your pay or duties as an employee did not meet California’s exemption requirements, you may have options. LNN can evaluate your classification and the wages at issue. Reach out, and our lawyers will go through your circumstances with you.