An employee's status as an exempt or non-exempt employee under California law is very important because it controls whether the employee is entitled to certain legal rights provided only to non-exempt employees.
Non-exempt employees are legally entitled to such benefits including minimum wage, overtime pay, meal and rest periods. Not providing these benefits to an employee who has been mis-classified as exempt exposes an employer not only to unpaid wages but costly penalties as well. Typically, an employee's job title and rate of pay does not determine whether he/she is truly an exempt employee. The job duties of an employee must be examined closely in order to deterrmine his/her status unless the employee fits into one of the well defined exempt employee categories for occupations in professional, managerial and executive positions.
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