Category: Legal advice

Things To Be Kept In Mind When Deciding On Employee Remuneration

California is one of those states in the USA with stringent labour laws. The legislations pertaining to minimum wages and salaries to be paid are mentioned clearly. As per any general Federal and State legislations, there are some exemptions and clauses that need to be carefully considered in case a legal issue crops up.

The law may presume every employee in the non-exempt category; But whether you are exempt or not, an employee is definitely entitled to overtime pay, minimum wages, rest breaks as well as off days. The employer must bear the responsibility for this classification based on requirements for every applicable and valid exemption; if the conditions are not met, the employer must then comply with all the standard norms.

There are some categories under which these exceptions can be classified into- managerial or executive, administrative, commissions paid for sales targets achieved, and computer or other professional qualifications and artists.

The Labour Commissioner in California decides on whether a job comes under the exempt or non-exempt category. Those who come under the former usually are those who earn at least two times the state’s stipulated minimum wage for a full- time employment. However, salary payment for a full-time employee does not make them an exception to any of the State’s wage and hours laws or other legal verifications.

The deductions are limited and based on the salary of any exempted employee as per the discretions of the law. The employees too regularly exercise their independent judgement as per the existing market rates.

Though the Californian laws are stricter and specific than the labour laws, it is useful to gain knowledge on the basics of the Federal labour laws. The Federal legislations may be taken as a guide when there is no conflict between the Sate and the Centre.