Wage and benefits issues, particularly past due overtime claims under the Fair Labor Standards Act or FLSA can be a big trap for employers that do not follow the rules. It is important to make sure your record keeping and overtime obligations are properly being followed. The particular minimum wage changes every couple of years. Certain deductions from a person’s salary, such as employer required uniforms, equipment, and merchandise shortages are not allowed to the extent that they reduce a good employees wage below the minimum-wage. California and San Francisco have their personal minimum wages in place. Under the FLSA or Fair Labor Standards Act, if you are a nonexempt employee and you also work more than 40 hours a week you are entitled to overtime. The report keeping obligations are especially stringent plus important to follow.
Unlike the FLSA and many other state laws, California demands the payment of overtime after 8 hours in a day, not just after 40 hours in a week.
In California if an employee works over forty hours a week they are eligible for overtime. Further the first eight hrs worked on the 7th consecutive day in the work week entitles the California employee to overtime.
Illustration: If a California employee works 10 hours a day on, Monday, Tuesday, Wednesday and Thursday, they are eligible for eight hours of overtime.
Alternate Work Week: An employer can thoroughly apply for and set up an alternative work week in California. Alternative work weeks are typically implemented to avoid the requirement that overtime be paid for hours worked beyond an eight hour day. If all the conditions below are met, employees can work longer compared to eight hours and be compensated only at their regular rate associated with pay for these additional hours: Company proposes alternative workweek in writing as well as the writing must fully disclose the particular rights employees will be waiving. The choice workweek must be approved in a key ballot election by at least two thirds of the affected employees. The alternative work week may not require more than 10 hours of work per day and no more than 40 hours of work in a workweek. Any overtime between 10 and 12 hrs worked above the alternative workweek established in the agreement must be paid on time and a half the regular rate of pay. Any overtime beyond 12 hours worked must be paid at twice the regular rate of spend.
Record Keeping For Non-Exempt Workers: If an employee is non-exempt employers must keep detailed time records. The time records must be by the time clock. If the time record consists of pre-printed forms that every week show, 8 hours a day, for all employees, that will type of record may be deemed to become a fake record. The California Labor Commission may hold that kind of record is the same as having no information at all. The idea is that people usually do not work exactly eight hrs a day, each work day, 221 function days a year.
Both current plus former employees have the right to gain access to all payroll and time-keeping information, including, but not limited to, paystubs, everyday and or weekly time reports, timecards, payroll histories and personnel files.
Employers are obligated to keep employment records, including payroll information showing the hours worked daily and the wages paid to no exempt employees employed at the establishment. An employer who fails to keep proper records cannot rely on the lack of precise evidence of the number of hours worked by an employee to defeat an motion by the employee to recover overtime compensation. The employer holds the burden to produce dependable documentation of the precise amount of time the particular employee worked. If the employer is unable to meet this requirement, a courtroom may order restitution of wages on the basis of the employee’s testimony.
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Exactly what Employees are exempt from California’s overtime and record keeping laws and regulations? When looking at employees start with the presumption that they are non-exempt. Then think about if they meet a specific exemption.