The California Supreme Court has just issued its decision in Harris v. Superior Court, an overtime pay case that addresses whether certain employees are exempt v. non-exempt under California’s Wage Order, which is similar the Fair Labor Standards Act (“FLSA”). The FLSA provides that all employees who are not exempt from the FLSA be paid at a rate of one and one half times their regular rate of pay for all hours worked in excess of 40 hours in any work week.
Whether an employee is exempt or not may be a complex determination and can have a potentially significant impact on an individual’s take home pay. If you have questions concerning whether you are entitled to overtime pay under the FLSA, it is important to consult an experienced Georgia overtime pay attorney.
In Harris, the California Supreme Court reviewed the “administrative exemption” to determine whether a group of insurance adjusters were exempt or not exempt. The court of appeal held that employees were only considered exempt where work is performed “at the level of making company policy.” Work that “merely carries out the particular day-to-day operations of the business is production, not administrative work.” Based on this definition, the administrative exemption was narrowly applied.