Managers (or other salaried employees) are often misclassified as exempt (meaning they are paid salary), when they should be classified as non-exempt (meaning they should be paid on an hourly basis). When an employer misclassifies a manager as exempt, there can be significant damage to the employee. For example, the employee should have been paid overtime. The employee should have had a meal period at a set time free of work. The employee should have been permitted breaks free of work.
Here are a few things to look at to see if a salaried employee was misclassified.
- The salaried employee must earn a salary of at least two times the state’s minimum wage for full-time work. As of January 1, 2025, this is $68,640 annually. If you don’t make this much money, you are misclassified and should consult with an attorney about the damages you may have suffered.
- A salaried employee must pass the duties test. A manager must primarily perform executive, administrative, or professional duties and it must be generally more than 50% of his/her work time. The salaried employee must exercise discretion and independent judgment as well. If you don’t satisfy this requirement, you should consult with an attorney about the damage you may have suffered.
- An exempt manager must also supervise at least two or more employees and have significant authority, such as hiring and firing, or influence over those activities.
There can be severe consequences if an employee is misclassified, including but not limited to, loss of overtime, meal and rest breaks, and potential penalties.
Feel free to call us at (818) 657-1070 if you feel you have been improperly misclassified.