How does California look at employees, and how is a San Diego business person able to make decisions regarding whether to make all employees “exempt” or if some must be hourly. I believe everyone should have a fair wage, but the issue of overtime has had a crippling effect on the business economy here in California. If you want to work additional hours to advance in your position, I believe that should be your prerogative.
However, as an employer I’m not sure I can allow you to or if it is worth the additional cost. We have laws in California and across the US because employers in the past took advantage of employees, forcing them to work without pay. Today it’s almost the opposite, as employers have to be very careful about the hours worked by each employee and when overtime (or time and half or more) is due.
The California Employment Development Department or EDD is the administrative arm of the State of California, and this is where associated employment guidelines and regulations are to be found. There is a series of classifications as to whether an employee is exempt or hourly. The Feds have their guidelines, and individual states have their own. Who wins in a dispute between state and federal regulations? What you ultimately have to prudently do is adhere to the stricter standard, which in this case happens to be California’s. You have to make sure you are not running afoul of either jurisdiction.
Questions of Exempt versus Hourly employment status can be quite complex. They can have ramifications on the success and profitability of your business, and be the source of potential liability if you do not exercise reasonable caution. We invite you to contact us or call today to schedule a free consultation at 866-631-3470.
We will discuss your unique circumstances, appropriate guidelines and advise you to help accomplish business goals and protect your interests.
