Legal Question in Employment Law in California
Exempt Status - Managerial required to punch a timecard
We are private nonprofit Childcare agency with 100 employees & growing. We contract with State social services & community care lincensing as well as received fuding from them and the city governments.
Our director requires that all of the managerial exempt status employees (all have passed the exempt vs. non exempt tests) punch timecards just as the hourly and salaried nonexpemt staff do. I have let the director know that this rule of hers is putting the agency in liability for overtime rules an automatically reclassifies the exempt to nonexempt status. What CA Labor law is specific to this and what can I tell the director from a legal standpoint?
2 Answers from Attorneys
Re: Exempt Status - Managerial required to punch a timecard
Your employer does not automatically transform exempt employees into non-exempt employees merely by requiring the employees to punch timecards just as the non-exempt employees do. It is what the employer does with that timecard information that could place the company at risk of an adverse finding regarding overtime. For instance, if the exempt employees are docked for sick leave or personal time, that would effectively transform them into non-exempt employees. If the employer does not use timecard information to adjust salaries (i.e., turn them into wages), then they are not doing anything illegal.
There is no particular statute that defines in detail what is an exempt v. non-exempt employee. This guidance has come about mostly through court cases and Labor Commission decisions and opinions.
Good luck.
Re: Exempt Status - Managerial required to punch a timecard
I'm sorry to tell you but you are wrong. There is nothing improper about requiring managerial personnel to punch time cards. Many employers have legitimate reasons for keeping track of the hours worked by all its employees. They simply cannot deduct an exempt manager's pay for hours missed during the work week.