High-Profile California Cases Draw Attention to Employee Misclassification

April 24, 2011

High-Profile California Cases Draw Attention to Employee Misclassification

Recent lawsuits filed in California courts against Franklin American Mortgage Company, Raytheon, Enterprise Rent-A-Car and Ecolab are highlighting the oft-ignored issue of employee misclassification. The intentional -- or even accidental -- misclassification of employees can make them ineligible for payment of overtime benefits, mandatory rest periods, covered meal times, uniform reimbursement and other employee perks.

California Overtime Payment Laws

California has some of the most employee-friendly employee classification laws in the country, designed to protect the livelihood of workers throughout the state. Generally, all hourly employees are eligible to receive additional compensation for the times that they are on the job more than 40 hours in a given workweek (or eight hours in a workday, depending on the type of job).

Is Everyone Eligible for Overtime Pay?

Not all employees are eligible for overtime pay and additional worker benefits, however, under California laws. California's Department of Industrial Relations and Industrial Welfare Commission provides guidance about the proper exemption of employees, giving three categories of employees who should not earn overtime compensation, including:
-Administrative employees -- those who perform non-manual labor that is directly related to management policies, general business operations or educational administration
-Professional employees -- whose primary duties involve the use of personal discretion and judgment, and performing work which is predominantly intellectual in nature
-Executive employees -- who regularly direct the work of at least two other full-time employees and work primarily in a managerial setting

In addition to the lawsuits against the aforementioned companies, there is also additional attention being given to certain industries right now. These industries are being scrutinized due to a notorious record of having misclassified employees for years. Including:
-Call centers (there are several class action lawsuits filed by call center employees pending around the nation)
-Retail/restaurant management
-In-store bank centers and local bank kiosks
-Property managers

If you or a loved one has been misclassified and are due unpaid overtime wages, contact an experienced employment law attorney in your area to learn more about your legal rights and options.

Article provided by Blumenthal, Nordrehaug & Bhowmik
Visit us at www.bamlawca.com