Titles That Are Commonly Misclassified As Exempt in California
The following titles, roles, positions are ones that are commonly misclassifed (or are at a higher risk) as 'Exempt" or "salaried" in California. This means that the employee in the position does not receive overtime premium pay when they work overtime hours. It is important to note that the list is not absolute and always, thus each position must be evaluated based upon the criteria of the exemption, the job duties, respoinsiblities, judgment, discretion and other key elements that are used to establish the appropriate classification in California.
Accountants and Other Accounting Professionals
- Why: These employees are often performing routine and repetitive work...even when they are degreed and in some situations, licensed CPAs. The key element here is the performance of tasks that are redundant (e.g., reconciliation, journal entries, accounts payable, accounts receiveable, closing books, etc.) on a daily, weekly and monthly basis AND/OR that are based upon commonly accepted and regular practices (in other words, it is performed the same way in all work environments) AND/OR utilizes software or applications to generate solutions, forecasting, etc. (in other words, date in entered and decisions or recommendations are made or relied upon).
Assistant Managers and Supervisors
- Why: The further you get away from being the senior manager of a department, function, etc. the more likely you are to not satisfy exemption. Members of management that are exempt will generally be classified under the Executive or Professional classifications. Under both, there is still the requirement of either having the ability to make decisions of consequence (this means that the individual can make a decision that can seriously affect the company or major part of the company), has the authority to make decisions with limited or no supervision, or has a significant amount of influence that can impact the employment of other employees.
Call Center, Telemarketing Supervisors and Managers
- Why: Simply put, in many call centers, supervisors and managers (especially in small call centers) spend a great deal of their time on the phone with customers, entering customer data into computer systems, and performing the same work as their subordinates. Remember, to be exempt, they must not engage the same tasks as subordinates 50% or more of the time...even if they are managing at the same time.
IT Professionals (Helpdesk, Drafters, IT Support, Network Administrators, System Support Engineers)
- Why: IT professionals are often degreed, thus leading employers to believe that technology + degree = automatic exempt. This, unfortunately, is a costly trap. IT professionals who operate computers, manufacture computers, repair or maintain computers, and are not skilled to work independently without close supervision are typically not eligible for this exemption. Other technology roles that are generally not eligible for exemptions as Computer Professionals include writers (those creating manuals, instruction, or website content associated with computer use), those who use computer assisted software but are not engaged in computer systems analysis or programming (including engineers and drafters), and those who use computers to create imagery for television, movies or theatrical productions).
- Also, in 2017, employees classified as Exempt under the Computer Professional Exemption must be paid no less than $88,231.36 per year.
Retail, Restaurant and Hospitality Managers and Assistant Managers
- Why: Although being responsible for managing the employees and finances of the operation, these individuals also tend to perform the same duties as their subordinates, such as cooking, cleaning, running a cash register, etc. while managing. Unlike federal classification, California does not recognize the combined responsiblities, thus managers must not engage those tasks more than 50% of their time. Retail and restaurant operations most likely to experience this are those with very low labor costs and lean staffing.