Employers are cutting costs—starting with labor costs.  For that, workers sacrifice: longer hours, less benefits, more productivity, etc.  But cost cutting has limits. 

A rough economy is no excuse for shortchanging workers.  Employers must fully and properly pay their workers.  That’s not negotiable.

Employers must properly compensate their employees for all the time that their employees work.  Payment must be made on-time and in compliance with all applicable wage laws.  Overtime wages must be paid and properly calculated.  Legally mandated meal and rest breaks must be provided.

Employers cannot misclassify employees as “independent contractors” or “exempt employees” to avoid obligations like paying overtime wages.

Employers cannot deduct office overhead expenses from workers’ paychecks. 

Even the growingly popular “alternative workweek” must be implemented in compliance with applicable laws to protect the rights of employees.

An employer that shortchanges its workers by violating “wage and hour laws” should be held accountable.  In addition to repaying workers for all unpaid wages, the employer must pay penalties, interest and the workers’ attorneys’ fees.

If you have not been properly compensated for your work, contact Markson Pico LLP at 213-895-4000 for a free consultation.

            Questions to Consider

• Does your employer properly calculate and pay regular wages and overtime?

California law generally requires that every employee must receive no less than the state minimum wage per hour for all hours worked (unless they are properly classified exempt employees).  In addition, except in some specific industries, an employee is entitled to overtime pay for all hours worked beyond eight on a workday, and, the first eight hours worked on the seventh consecutive day in a single workweek.  (The amount of overtime pay depends on how many hours of overtime are worked.)  Also, the law requires that employees be paid on time and in the required manner.  For example, different rules apply when an employee is terminated versus leaves voluntarily.

• Does your employer permit proper meal and rest breaks?

Employers in California are required to give workers periodic meal and rest breaks.  The law governs how much time must be given for the breaks, how often breaks must be given, if and when the breaks may be waived, and how the breaks may be waived.  The law also governs what pay must be given for the break periods and what penalties apply for violations of meal and rest break laws.

• Have you been misclassified as an exempt employee?

Certain employees are exempt from wage and hour laws.  Some employers misclassify workers as “exempt” employees to avoid many of the protections afforded under overtime laws and other legal requirements. 

An exempt employee is defined under various state and federal laws.  There are certain categories of exempt employees, such as executive/managerial, administrative, outside sales, commission sales, and licensed professionals.  But the exemption categories are narrowly defined, limited in scope, and depending on a number of factors, the exemption may or may not apply.

In general, an exempt employee has a special skill or license (such as a lawyer, doctor, or engineer) and works with limited supervision.  Some workers who assist senior management may be exempt if they are paid at least a certain multiple of the minimum wage.  Some employees may be only partially exempt depending on how much of their time is spent on exempt versus non exempt activities such as management versus production activities.  The intricacies of the job must be analyzed to determine whether a worker is an exempt or non-exempt employee.

• Have you been misclassified as an “independent contractor”?

The protections of wage and hour laws apply only when an employer-employee relationship exists.  Some employers misclassify workers as “independent contractors” to avoid the requirements and protections afforded employees under the law, such as minimum wage laws and overtime laws.  The relationship is defined by law, not the employer.  There are a number of factors that must be considered and assessed in determining whether a true independent contractor relationship exists.