Last week, a California judge certified a class of nearly 3,000 Oracle employees who allege they were misclassified as exempt under California’s Labor Code – similar to the federal Fair Labor Standards Act (“FLSA”) – by denying overtime pay and failing to provide off-duty meal periods. All employees who are not exempt must be paid at a rate of one and one half times their regular rate of pay for all hours worked in excess of 40 hours in any workweek.
Whether an employee is “exempt” is one of the most important issues in overtime law. Exemptions fall into three principal white-collar exemptions – executive, professional and administrative. Executive exemptions typically involve high-level managers or other individuals who manage and control an important aspect of the company’s business. Professional exemptions apply where your duties involve work that is intellectual in nature and requires “advanced knowledge” in an area of science or learning. Administrative exemptions cover those employees whose duties include the performance of office or non-manual work related to the general business operations of a company, and who’s primary duty involves the exercise of discretion and independent judgment related to company business.
At issue in the Oracle case is whether thousands of employees including technical analysts, project managers and quality assurance analysts, should be considered exempt.
Although California uses a slightly different test to determine exemptions
than the FLSA, under both California law and the FLSA job title is irrelevant
to the exemption determination – what matters is the specific job
functions of the employees in question.
Employers often misclassify employees – either mistakenly or intentionally – depriving workers substantial overtime compensation. If you have believe you been denied all the compensation you are entitled to, contactBuckley Beal LLP, LLC, a Georgia law firm dedicated to protecting worker’s rights.