Workers across the country have the legal right to be paid at a higher-than-normal rate for overtime hours. Sadly, companies and other employers often go to great lengths to try to avoid ponying up the extra cash.
One of the most common scams is by using job titles, like “manager” or “supervisor,” to claim that certain employees are exempt from overtime pay requirements. The truth, however, is that the title of your position has nothing to do with whether you have the right to be paid overtime for extra hours.
At Justice Law Corporation, our employment lawyers help working people fight back when they are ripped off or shortchanged on the job. We are seasoned attorneys who have dedicated our professional lives to these cases and have a significant track record of success.
Here is what you need to know about overtime pay requirements, “white collar” exemptions, and why employers cannot simply ignore their legal obligations by pointing to job titles.
How Overtime Pay Works
Federal law generally requires employers to pay their employees at a higher rate—1.5 times their normal hourly rate—for all hours worked beyond 40 in a single workweek. Workers who are not paid at the full overtime amount for overtime hours have the right to seek back pay and other penalties from their employers.
There are, however, several exemptions from overtime requirements. The most notable is the “white collar” exemption for workers who largely do managerial, administrative, or professional jobs and are paid at least a certain amount. Workers who are exempt are not entitled to overtime pay under the federal law.
To be covered by the exemption, employees must:
- Be paid a salary of at least $684 per week or $35,568 per year; and
- Primarily perform job duties that are executive, administrative, or professional
Note that job titles are not a factor in the analysis.
The idea behind the white-collar exemptions is that employees in bona fide executive, administrative, or professional roles typically have greater autonomy, higher salaries, and less traditional hourly schedules than other employees.
Unfortunately, the federal overtime protections have been watered down. The minimum salary requirement for the exemption has not been adjusted to keep pace with inflation and minimum wage increases across the country.
The good news is that many workers who are exempt under the federal overtime law still qualify under stronger overtime laws in states like California and Washington.
California employees must be paid 1.5 times their regular rate for any work performed beyond those time limits, according to state law. The overtime rate increases to twice the regular pay rate for hours worked beyond 12 in a day or eight on the seventh consecutive day in a workweek.
Employees in Washington must also be paid time-and-a-half for all hours worked beyond 40 in a workweek. Unlike in California, overtime pay does not kick in if an employee works more than a certain number of hours in a single day.
Both states have limited the overtime pay exemption for “white collar” employees beyond that in the federal law. They do so by increasing the minimum salary an employee must earn to qualify for the exemption.
In California, an employee must be paid at least $1,320 per week ($68,640 annually) to meet the salary test. In Washington, the minimum pay for the white-collar exemption for most employees is $ 1,499.40 per week ($77,968.80 per year).
Managers and Supervisors: Why Your Job Title Does Not Matter for Overtime Pay
Salary is just one piece of the puzzle. To be exempt from overtime pay under federal and state laws, you also have to primarily perform job duties that are executive, administrative, or professional.
What does that mean?
For people who are classified as “managers,” you must primarily focus on duties that involve exercising discretion and independent judgment. If you spend most of your time on tasks that are similar to those being performed by non-managers, you are not exempt from overtime pay requirements.
California is among the states whose “duties tests” for the overtime pay exemption purposes are more stringent than those under federal law. In other words, it is harder for employers to claim that certain workers are exempt.
California workers must spend more than 50% of their time per week on executive or administrative tasks to be exempt as managers. These tasks include directing the work of two or more employees or working on specialized or technical lines that require special training, experience, or knowledge.
Certain professionals—lawyers, doctors, engineers, and architects— are also exempt based on the nature of their work.
Misclassified as Exempt? Here is What You Can Do
Anyone who has been denied overtime pay, whether it is because they are wrongly treated as exempt as managers or for some other reason, has the right to take legal action.
Employees can file complaints with the U.S. Department of Labor or state agencies in California and Washington. They can also pursue lawsuits against their employers for unpaid overtime.
Some of the legal remedies that may be available in these cases include:
- Back pay for unpaid overtime
- Liquidated damages (doubling the amount owed)
- Interest on unpaid wages
- Attorneys’ fees and costs
Groups of workers also have the right to join together to take action when their employers violate overtime and other wage and hour laws. Employment class actions help workers level the playing field with massive corporations by allowing them to pursue claims in a single case.
Our California and Washington Employment Lawyers Can Help
If you believe that your employer is violating your rights on the job, whether it is by misclassifying you or shortchanging you on regular pay or overtime, you do not need to go it alone. The attorneys at Justice Law Corporation can help you evaluate your claim and understand your rights and options.
Our offices are conveniently located in Pasadena and Seattle, and we serve clients across the region. Contact us at (818) 230-7502 to schedule a free consultation.
