Certain employees are not entitled to receive overtime pay and meal and rest break. These employees are commonly referred to as “exempt.” In order to qualify as an “exempt” employee, generally, the employee must meet the test for exempt status under federal and state laws. Because exempt employees are not entitled to the same rights as non-exempt (or hourly) employees, it is important to ensure that employers are correctly and properly classifying exempt employees as exempt. For example, exemptions apply to managerial, administrative, and professional employees, outside salespersons, and various other types of employees. Each of these categories of employees require a careful analysis. Additionally, “exempt” employees must be paid a salary that is at least double the minimum wage based on a 40-hour workweek schedule. If you are being paid a salary as an exempt employee, we strongly encourage you to seek advice from an experienced labor and employment attorney to evaluate whether you are properly classified. Being misclassified means that you could be owed significant compensation in the form of unpaid overtime, unpaid meal and rest break penalties, and other penalties.
