An Ounce Of Prevention Is Worth A Pound Of Litigation


Wading through complex employment laws is often a challenging endeavor for employers. This has been especially true during the last several years, as companies have been reorganizing their workforces, cutting costs and tightening their budgets to stay competitive. If you were one of these employers, it's likely that you were required to reexamine the classification of certain employees who, as a result of the change in their duties, no longer met the exemption requirements.

The distinction between "exempt" and "non-exempt" is relatively simple in theory but difficult in application. To start, there are several different categories of exemptions, each of which pertain to different types of employees. The five major exemption categories in California are the executive, administrative, professional, computer professional, and the salesperson exemptions.

The appropriateness of an employee's classification as exempt must be based on the actual job duties performed by that employee, together with the employer's realistic expectations regarding the position.[1] Clearly, a job title alone is insufficient to establish the exempt status of an employee.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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