Call Our Free Helpline NOW 949-379-6250

Employment Law News

IF YOU’RE NOT SALARIED, YOU’RE NOT EXEMPT

Posted by Samuel A. Wong | Jul 01, 2013 | 0 Comments

 ON 

Although most of the focus in determining whether an employee is exempt from the requirements of overtime and meal and rest periods is usually focused on the duties the employee performs, California's Sixth Appellate District recently reminded us that there is another, equally important factor to consider.  In order to be “exempt,” an employee must be paid “a monthly salary equivalent to no less than two times the state minimum wage for full-time employment.”

“Salary” does not necessary mean what it sounds like: a fixed weekly, monthly, or yearly amount.  It can include many different kinds of pay, so long as a portion of the employee's pay is fixed and equal to at least twice the minimum wage.  For instance, if an employer and employee agree that the employee will earn $20 per hour with a guaranteed minimum of $640 a week regardless of the hours worked, the employee can be considered salaried.  However, even if the employee gets $50 an hour so that he or she only has to work a few hours a week to equal $640, if there is no guarantee of a minimum income, the employee is not salaried.

That was the case in Negri v. Konig & Assoc.  The Court considered whether a highly compensated employee could be exempt when his pay was based solely on the number of hours worked.  Even if he always worked enough hours to meet the twice-the-minimum-wage requirement, because the employee was not guaranteed a minimum of at least $640 a week, he could not be exempt.  The employer's mistake was a costly one:  it could now owe the employee for hundreds of hours of overtime.

About the Author

Samuel A. Wong

Samuel A. Wong is a renowned Orange County trial lawyer and a Co-Founder of Aegis Law Firm. Mr. Wong has spent his entire career litigating employment related matters, including wrongful termination, discrimination, harassment, wage, disability and medical leave cases. Mr. Wong is also an expert ...

Comments

There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

The Quickest and Easiest Way to Hold Your Employer Accountable

At the Aegis Law Firm, we know that you may be going through a difficult time, and we are here to help you recover from the wrongs that you suffered. An attorney at our Orange County or Los Angeles law firm can speak with you for a free initial consultation to help you with your employment issues. We also take most cases on a contingency fee basis, which means that you do not pay any fees unless you win or recover compensation.

949-379-6250

Menu