Legal Question in Employment Law in California

Exempt/Non-Exempt

I am the Administrative Assistant to the CEO of a Biotech company. Last year the company changed my status from non-exempt to exempt. Now the company has decided to change me back to non-exempt because of a California State Law. In changing my status, the company has reduced my hourly rate so I have to work 2.5 hours overtime to receive my base pay (given to me in my performance review). My questions:

1. Did the California law change in the last year or should I have been non-exempt all along.

2. Is changing my hourly rate and requiring me to work overtime to recieve the pay I was promised in my performance review legal.

3. Can I ask for back pay for the overtime I have worked in the last year.

Thank your for your time, I think this is a great service you provide to the public.


Asked on 7/01/00, 12:00 pm

1 Answer from Attorneys
Stuart Kaye Law Offices of Stuart M. Kaye

Re: Exempt/Non-Exempt

Question 1. The law in California as to the determination of exempt/nonexempt has not changed. The answer is generally found in a review of the work performed by the employee, the duties test. A determination of your status would require a detailed review of your duties, beyond the scope of this reply.

Question 2. An employer generally has the right to change the rate of compensation paid to an employee at any time. Notice to the employee of the change prior to the change is necessary and the change cannot be retroactive, ie. for a period already worked by the employee.

Question 3. You may be entitled to overtime for the prior year depending upon the result of the duties test mentioned above. The statute of limitations for overtime in California is three years.

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Answered on 9/06/00, 12:03 pm


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