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Overtime Violations under California Labor Law
Only salaried employees qualifying under the "white-collar" overtime exemptions are exempt from receiving the overtime premium. Executive (managers), administrative, professional, sales, and computer professional employees are exempt from overtime requirements in California, provided they meet certain tests regarding job duties and responsibilities and are compensated on a salary or guaranteed commission basis at not less than stated amounts.
Employers often avoid paying overtime by misclassifying employees in salaried positions “exempt” from overtime pay. These are narrow exceptions to the general rule that all employees are entitled to premium pay for overtime hours, generally either time and a half for hours worked between 8 and 12 per day or 40 per week or double time for hours exceeding 12 per day or on the seventh straight day during a workweek.
IT and Computer Technology Workers, Loan Consultants, Inside Sales Representatives, Managers and Assistant Managers, Pharmaceutical Representatives and others work long overtime hours but are often misclassified as salaried employees and not provided premium overtime pay. Misclassified workers are entitled to four years restitution of back pay under California law.
To avoid paying overtime, employers must establish that workers fall under one of the following exemptions: