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| Overtime Law |
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Administrative Exemption
Administrative Employees
The key to understanding the Administrative exemption is the “Production or Sales vs. Administrative” dichotomy. Generally, if an employee is engaged in delivering (“production”) or selling a company’s product to a customer (“sales”), that employee is not exempt under the Administrative exemption (meaning the employee should receive overtime pay). This is true regardless of whether the company’s product is goods or services.
Only an employee who administers the business affairs of the company will be exempt under the Administrative exemption. On the other hand, an employee who carries out the employer’s day-to-day operations will not be exempt and thus should receive overtime pay.
California law defines “Administrative Employee” as follows:
Administrative Employee means any employee whose duties and responsibilities involve either:
1. The performance of office or non-manual work directly related to management policies or general business operations of his employer or his employer’s customers, or
The performance of functions in the administration of a school system, or educational establishment or institution, or of a department or subdivision thereof, in work directly related to the academic instruction or training carried on therein; and
2. Who customarily and regularly exercises discretion and independent judgment; and
3. Who regularly and directly assists a proprietor, or another employee who is employed in a bona fide executive or administrative capacity (as such terms are defined for purposes of this section), or
Who performs, under only general supervision, work along specialized or
technical lines requiring special training, experience, or knowledge, or
Who executes, under only general supervision, special assignments and tasks, and
4. Who is primarily engaged in duties which meet the test for the exemption.
If you believe that you are not being paid for all of the time you have worked or that you are not being paid overtime that you are due, please fill out our online consultation form.
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