The California Chamber of Commerce recently published information on how business owners may be breaking employment laws. Are you breaking any one of these laws even if unintentionally? I’ll be sharing information over the next few posts on the mistakes business owners may be making when it comes to employees.
Mistake #1: Classifying employees as exempt from overtime
There are specific rules as to who should be paid overtime. Just because workers are paid a “salary” doesn’t mean they don’t qualify for overtime. Many owners think if they are paid the same amount no matter how many hours they work, they don’t need to pay extra for hours over the normal 8 in a day or 40 in a week. Some think that a specific job title means an employee is also exempt. This is incorrect. While some jobs are exempt, these are usually high-level executives and administrative or professional employees. Non-exempt employees must also be given proper rest and meal periods as defined by law.
Mistake #2: Allowing employees to take lunch at any time they want
Employees must take a 30-minute off-duty meal period if they will work more than 5 hours that day. Some employees like to take their lunch late in their shift so most of the day is over when they return to work. Employers may feel they are being nice by allowing the employee to take their break whenever they want. However, California labor laws require that an employee take their lunch break no later than the end of the fifth hour of their shift.
Mistake #3: Allow employees to decide which hours and how many they want to work each day
Employees may prefer to work an alternative workweek schedule, however, they can’t just decide to do so. If an employer is going to allow an alternative schedule, some steps must be followed to make sure overtime does not apply. Employees may request make-up time for hours to be missed if they meet certain conditions:
- a. The hours are made up in the same work week as the time to be missed
- b. They work no more than 11 hours in a day or 40 in the week
- c. The employer agrees
- d. The request is made in writing
To avoid penalties, make sure you follow all labor law requirements and class employees properly, make sure they take their meal breaks timely, and have employees work a specific schedule.
Additional mistakes will be posted in the next blog entry.
