Do you know 2 Little Known Tricks that Employers Use When Computing California Overtime Pay?
Let’s face it. Employers are in business to make money. In doing this, in many instances, the California Overtime Pay laws are ignored. If you are able to spare 1-2 minutes of your time to read this article, you will not be fooled when it comes to receiving all of the overtime pay you deserve under California Overtime Laws. Here are the most common tricks employers pull on their employees.
According to the California Overtime Law, a salaried employee is defined as exempt and is not required by law to receive overtime pay. Employees
that receive a salary are actually receiving a fixed amount of pay on each scheduled pay period. Exempt employees’ salary can not be reduced, so if they work less hours during any given pay period they are paid their regular weekly (biweekly pay). California Overtime Law has regulations and policies regarding the Computation for salaried employees.
Trick #1 Classifying an Employee as salaried and exempt from overtime.
Designated to protect employees, California Labor Law Overtime construes laws to offer employees the absolute maximum protection. Under the California Labor Law Overtime, employees are entitled to overtime pay. California Overtime policies and regulations declare that the employer has the burden of proof to prove that it properly paid the employee. California Overtime dictates an employee’s right to overtime pay. It doesn’t matter whether or not the employee is salaried. Many salaried employees are entitled to overtime pay after working overtime hours. Unfortunately, many employers are not knowledgeable of overtime law. Fortunately, overtime law exists to protect the employee. Overtime Law regulations state that an employer must pay overtime pay. This of course is unless it can prove an employee is “exempt” from overtime requirements.
Employers face major penalties if they react against employees who pursue salaries, overtime pay and even other benefits. Employers can’t harass, terminate or even demote employees due to the fact they seek their fair wage (overtime). To protect employees, Overtime Law in California provides for damages, injunctive relief ordering the employer to avoid prohibited conduct and monitoring behavior of the employer, interest, attorneys’ fees and costs. Be sure to talk to a qualified overtime pay attorney if you feel you might be entitled to overtime pay.
Trick #2 Overtime Computation in California
Overtime computations have been a point of difficulty for California employers for decades. California overtime regulations required paying daily overtime in addition to the overtime hours beyond 40 hours in a week. Then, California legislature altered the law, eliminating daily requirements for overtime. On August 23, 2004, new overtime exemption called “White Collar Exemptions” was implemented as modifications to California Labor Law Overtime.
The following sample of overtime computation is as follows:
A Employee’s rate is $10
Employee works 60 hours during a 40-hour-work week.
Basic pay for 40 hours ($10 x 40)= $400
Overtime pay for 20 hours overtime (time and a half) ($10+$2.50=$12.50 x 20)=$250
Overtime computation ($400+$250)=$650
By overtime law in California, payroll offices should rightfully notify individual employees of their entitlement and process the retroactive wage adjustments. Liquidated damages are a penalty to California employers and are paid to the affected employees in an amount equal to the pay adjustments’ amount for the owed wages (overtime). Employers may only attempt to pay overtime when an employee works more than 40 hours and NOT if they work more than 8 hours in a day. This is incorrect. If you feel that are being shorted your overtime, be sure to talk to a California Overtime Law Attorney.
Kathleen Armitage is a freelance journalist who frequently contributes and comments on California labor issues. Learn more by visiting web sites such as California Overtime law and Labor Attorney
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