The “Administrative” Exemption for California Employees

In prior articles, I discussed the “professional“ and “executive“ exemptions to California’s wage and hour laws, and this article will focus on the “administrative” exemption.  In general, exempt employees are not entitled to overtime pay, reporting time pay, nor are they provided with meal and rest break periods.

The administrative exemption requires an employer to establish that the employee meets all of the following factors:

  • The employee’s duties involve office or non-manual work directly related to the management or general business operations of the employer.  For example, developing or executing financial, marketing or sales strategies would be considered “administrative” tasks.  On the other hand, making or selling the company’s products or services is considered “production” work.
  • The employee’s duties must be of “substantial importance to the management or operation of the business.” For example, routine clerical work performed by bookkeepers, secretaries, bank tellers, or clerks is not of substantial importance.
  • The employee’s duties fit into one of three categories:
    • The employee regularly and directly assists the business owner or another exempt executive administrator.  For example, an “executive assistant” or “assistant manager,” are considered to fall within this job duty category; or
    • The employee performs, under minimal supervision, specialized or technical work that requires special training, experience or knowledge;  or
    • The employee executes special assignments and tasks under only general supervision. The phrase “special assignments and tasks” is not defined but would include such job duties as movie location managers, account executives in advertising films, or brokers in stock exchange firms.
  • The employee customarily and regularly exercises discretion and independent judgment over significant matters.
  • The employee spends more than half of her work time performing exempt administrative tasks (the “50% rule”).

If you believe that you are misclassified as an exempt administrative employee, but do not meet the above test, we urge you to contact an attorney to discuss your situation as soon as possible.

Read more

wrongful termination attorney

Cheesecake Factory sued for firing worker in retaliation for discrimination complaint

A former Cheesecake Factory employee filed a wrongful termination and retaliation lawsuit in Los Angeles Superior Court against the popular restaurant chain. She was allegedly fired in retaliation for complaining about a…

READ ARTICLE
disability discrimination lawyer

LAPD officer wins $1 million in disability discrimination lawsuit

Just because an employee has a disability does not mean they must stop working. Under the law, employees with disabilities have a right to keep their jobs and seek damages against employers…

READ ARTICLE
wage violation lawyer

Sushi restaurant ordered to pay almost $30,000 in back wages to cooks

Employers looking to cut corners may sometimes think they can get away with not paying employees all the wages they have earned. Not only does such behavior result in employees missing out…

READ ARTICLE
wage theft lawyer

Senior care facility fined for wage theft after state investigation

Employees in certain industries are required to work overtime or be on call. Under California law, they must be paid for all time spent working beyond their regular hours. Employers are also…

READ ARTICLE
SEEN ON
bloomberg
sfgate
kpix
cnnmoney
marin-ij
dailypost
news10