Misclassification of Non-Exempt Employees

When California employers decide to cut costs by paying non-exempt employees a salary and calling them "exempt," they call on Palay Law Firm to recover unpaid overtime. So far, we have recovered millions of dollars for these misclassified-exempt employees.

Examples of recent misclassification cases we have taken include:

• Misclassified as exempt employee: Employer wrongfully paid dishwasher repairmen as salaried-exempt and did not pay them overtime;
• Misclassified as exempt employee: Employer wrongfully paid computer software technicians as salaried-exempt even though they did not earn enough per hour to make them exempt under California law;
• Misclassified as exempt employee: Employer wrongfully paid office administrator as exempt in order to avoid having to pay overtime;
• Misclassified as exempt employee: Employer wrongfully paid employee of drycleaner as exempt from overtime, but she did not exercise discretion and independent judgment over 50% of the time;
• Misclassified as independent contractor: Employer paid employee with 1099 even though he was not an independent contractor;
• Misclassified as exempt employee: Large class action recovery against employer who classified pest control inspectors as exempt.

To learn more about who is exempt or nonexempt from overtime, visit our new website dedicated to this issue: nonexempt.org. It is a work in progress, but there is some good information on about the misclassification of exempt employees and what the law says about the legal requirements for exempt employees.

Learn more about California wage and hour law in our frequently asked question (FAQ) section.