|
Frequently Asked Questions
QUESTIONS AND ANSWERS
Back To Top
- What are the exemptions to minimum wage?
- Minimum wage does not apply to: outside salespersons; and individuals who are the parents, spouse or children of the employer. The Industrial Welfare Commission (IWC) permits "learners" during the first 160 hours in occupations in which they have no prior experience, to be paid 85 percent of the current minimum wage to the closest nickel.
Back To Top
- What are the exemptions to overtime?
Almost all workers must be paid overtime as required by state law unless you meet all of the requirements for one of the exemptions. The following workers might not be entitled to overtime: Individuals who perform child care services in their home or the home of the child; Administrative, executive or professional workers; Outside salespersons; and, Independent Contractors
For more detail, see the Division of Labor Standards Enforcement Opinion Letters
Back To Top
- What is the minimum salary for an exempt employee?
Exempt employees must earn a minimum salary which is the equivalent of two times the state minimum wage for full time employment. Much higher exempt hourly rates apply to exempt computer professionals and doctors, these rates are subject to annual revision.
For more detail, see the Division of Labor Standards Enforcement Opinion Letters
Back To Top
- When can an employer make deductions from an exempt employee's salary?
As a general rule, an exempt employee must be paid full salary for any workweek in which he/she performs any work. Specific rules apply with regard to various deductions from an exempt employee's salary, as follows:
- Deductions from the salary of an exempt employee may not be made due to variations in the quality or quantity of the work performed;
- Deductions may not be made for time when work is not available if the employee is ready, willing, and able to work;
- Deductions may be imposed when the employee absents himself from work for a full day or more for personal reasons (i.e. vacation), other than sickness, accident, or disability;
- Deductions may be made for absences of one full day or more occasioned by sickness, accident, or disability if deduction is made in accordance with a bona fide plan, policy, or practice of providing compensation for loss of salary for sickness, accident, and disability, even if the employee has no time available in his/her sick pay bank;
- Deductions for disciplinary reasons are not permitted under California law. An employee's salary may be prorated in full day increments for the initial and final weeks of work; and
- Deductions from salary may not be made for partial day or week absences caused by jury, attendance as a witness, or temporary military leave.
- Employers may charge an exempt employee's accrued vacation or PTO benefits for a partial day absence provided the employee has enough time available when the absence occurs and the time off is for a period of 4 or more hours in a work day.
- Employers may charge an exempt employee's sick pay bank for partial day's absence due to illness or injury provided the employee has enough time available when the absence occurs. If the sick pay plan provides a vested benefit that must be paid out at termination, the time off must be for 4 or more hours in a work day.
Back To Top
- Are employees on alternative workweek schedules entitled to overtime, and if so, how do I pay them overtime?
Employees on an alternative workweek earn overtime differently than those who are subject to overtime after eight hours per day.
Employees on alternative workweeks are owed time and a half for all work performed in any workday beyond the schedule established by the alternative workweek agreement, up to 12 hours a day, and for all work performed beyond 40 hours per week. Double time is owed for all work performed in excess of 12 hours per day, and any work in excess of eight hours on those days, other than those regularly scheduled by the alternative workweek agreement.
For more detail, see the Division of Labor Standards Enforcement Opinion Letters
Breaks & Meal Periods
Back To Top
- Can a business or organization require workers to stay at the workplace building or site during rest breaks and meal times?
Back To Top
- When must a worker get a meal break?
- Workers must be allowed at least a 30 minute meal period if more than 5 hours are worked in a shift.
Back To Top
- Must workers be paid during their meal break?
- An employee is not required to be paid for meal periods if the employee is free from any duties for their entire meal period.
- Workers must be paid during their meal break when:
- They are required or allowed to remain on duty.
- They are called back to duty during their meal period even though they normally are not on call during the meal period.
For more detail, see the Division of Labor Standards Enforcement Opinion Letters
Schedules
Back To Top
- What does "hours worked" mean?
"Hours worked" means all hours during which the worker is authorized or required by the business to be on the premises or at a prescribed work place. This could include travel time, training and meeting time, wait time, on-call time, and time for putting on and taking off uniforms, and also may include meal periods.
Pay Requirements
Back To Top
- How often and by what dates must workers be paid?
For non-exempt employees, all wages for the normal work period must be paid at least twice each calendar month on days designated in advance by the employer. An employer also may choose to pay employees weekly, bi-weekly or semi-monthly with payment within seven days of the end of the pay period.
Even when an employee fails to turn in a record of time worked, the employer remains legally obligated to pay the employee on the established payday.
Salaries of executive, administrative and professional employees may be paid once a month on or before the 26th day of the month.
For more detail, see the Division of Labor Standards Enforcement Opinion Letters
Back To Top
- May a business require workers to sign up for direct deposit of their pay into their bank account rather than by paycheck?
Yes, as long as there is no cost to the workers.
For more detail, see the Division of Labor Standards Enforcement Opinion Letters
On-call pay
Back To Top
- Is a worker entitled to "on-call pay" if the business requires workers to be available to a phone, if needed, to return to work on an emergency basis?
Whether on-call or standby time off the work site is considered compensable must be determined by looking at whether the time in question is "controlled" or "uncontrolled."
Controlled standby generally means that an employee is required to remain on-call at or near the employer’s premises, so that the employee is not free to do whatever they want. Non-Exempt California Employees Must be Paid for "controlled" Time. Controlled standby time may be compensated at a different rate than is paid for regular work by the employee, so long as the employee is paid at least minimum wage.
On the other hand, Uncontrolled standby time usually occurs when the employee is required to inform the company of where the employee may be contacted, and is allowed sufficient time to pursue his or her own activities. This usually occurs when the employee is only required to carry a cell phone or pager. Such on-call or standby time is not compensable when the employee is free to engage in personal pursuits.
Deductions from Pay
Back To Top
- What deductions are allowed from a paycheck
Only certain deductions are allowed from a worker’s final paycheck. These may be applied only to incidents in the final pay period and may not be saved up from previous pay periods.
For more detail, see the Division of Labor Standards Enforcement Opinion Letters
Final Paycheck
Back To Top
- How soon does a business have to give a worker a final paycheck?
Back To Top
- Are workers entitled to receive damages/penalties from a business for failing to pay as required when leaving the job?
Yes. For up to thirty (30) days of your daily rate. This is called Waiting Time Penalties.
For more detail, see the Division of Labor Standards Enforcement Opinion Letters
- 1986.09.151986.09.15 Termination pay: Obligation to return in case of quit
Commissions, Piece Rate & Bonuses
Back To Top
- Is overtime pay required for those paid on a commission or piece rate basis?
Back To Top
- Are draws against commissions legal?
Draws against commissions to be earned at a later date are legal only if the draw is equal to at least the minimum wage due the employee for all hours worked in each pay period. The draw may be reconciled against earned commissions at an agreed date or when the commission is earned if there is an express agreement to that effect between the employer and the employee. If no express agreement exists, the draw will be considered the basic wage in lieu of salary and fix the employee’s minimum compensation. (Agnew v. Cameron (1967) 247 Cal.App.2d 619)
For more detail, see the Division of Labor Standards Enforcement Opinion Letters
|
|
