Many employees in Los Angeles are classified as “salaried” or “exempt” and therefore not entitled to overtime pay. For some, that classification is accurate. For many others, it is not. Employers often assign exempt titles to positions that do not legally qualify for exemption under California law, resulting in widespread unpaid overtime.
Job titles alone do not determine exemption status. What matters is how the job is actually performed and whether strict legal criteria are met. Understanding the difference between legitimate exemptions and misclassification can help employees recognize when overtime wages may be owed.
What “Exempt” Really Means Under California Law
California law presumes employees are entitled to overtime unless an employer can prove that an exemption applies. Exempt employees are not entitled to overtime, meal breaks, or rest breaks. Non-exempt employees are.
To lawfully classify an employee as exempt, an employer must generally satisfy two main requirements:
- The employee must be paid a salary that meets or exceeds the minimum threshold set by California law.
- The employee must primarily perform specific types of duties defined by statute and regulation.
Failing either requirement means the employee is non-exempt and entitled to overtime.
Salary Alone Does Not Create an Exemption
Being paid a salary does not automatically make someone exempt. Many employees receive a fixed salary yet remain legally entitled to overtime.
If the salary does not meet the minimum threshold or the employee’s duties do not qualify for an exemption, the employee must be treated as non-exempt regardless of how they are paid.
This misunderstanding is a central driver of misclassification.
The most frequently used exemptions include:
- Executive exemption.
- Administrative exemption.
- Professional exemption.
Each category includes detailed requirements for job duties, level of independent judgment, and managerial authority. Employers often misapply these exemptions by focusing on titles instead of actual work.
Red Flags That an Employee May Be Misclassified
Certain patterns frequently appear in misclassification cases.
Warning signs include:
- Performing mostly routine or manual tasks.
- Following detailed instructions rather than exercising independent judgment.
- Having little or no authority over hiring, firing, or discipline.
- Spending most of the time doing the same work as hourly employees.
- Being closely supervised.
When day-to-day work looks more operational than managerial or professional, exemption status may be improper.
The Executive Exemption Is Commonly Misused
Employers often label employees as “managers” or “supervisors” to justify exempt classification. However, the executive exemption requires more than a leadership-sounding title.
Generally, the employee must:
- Primarily manage the enterprise or a department.
- Regularly direct the work of at least two employees.
- Have meaningful input into hiring, firing, or promotion decisions.
Employees who spend most of their time performing non-managerial tasks usually do not qualify, even if they occasionally supervise others.
The Administrative Exemption Is Narrow
Administrative work must involve office or non-manual duties directly related to management or general business operations. The employee must exercise independent judgment on matters of significance.
Clerical work, data entry, routine processing, and customer service generally do not qualify.
Many employees are misclassified under this exemption because their work supports the business, but does not involve policy-level or strategic decision-making.
The Professional Exemption Has Strict Requirements
Professional exemptions typically apply to licensed or specialized professions that require advanced education, such as attorneys, physicians, engineers, and certain scientists.
Creative professionals may qualify only if their work requires invention, imagination, originality, or talent. Routine production work does not meet this standard.
Why Employers Misclassify Employees as Exempt
Misclassification often occurs because exempt employees are cheaper. Employers avoid paying overtime, meal and rest break premiums, and other wage-and-hour obligations.
In some cases, misclassification results from ignorance. In others, it is a deliberate cost-saving strategy. Regardless of intent, misclassification violates California law.
What Misclassified Employees May Be Owed
Employees improperly classified as exempt may be entitled to recover:
- Unpaid overtime wages.
- Interest on unpaid wages.
- Meal and rest break premiums.
- Wage statement penalties.
- Waiting time penalties.
- Attorney’s fees and costs.
Because misclassification often lasts months or years, potential recovery can be substantial.
How a Los Angeles Employment Law Attorney Can Help
Misclassification analysis requires careful review of job duties, pay structure, and workplace practices. An experienced employment law attorney can evaluate whether an exemption applies and calculate potential unpaid wages.
Legal counsel can also communicate with the employer, pursue a settlement, or file litigation when necessary.
Leichter Law Firm represents employees in Los Angeles County and throughout California in wage-and-hour and misclassification matters. The firm focuses exclusively on employee-side employment law and understands how employers misuse exempt classifications.
Taking the Next Step
Employees labeled as exempt are not automatically barred from overtime. When daily work does not match the legal definition of exempt duties, overtime wages may be owed.
A confidential legal consultation can clarify classification status and identify recovery options. Contact Leichter Law Firm, APC, to discuss whether exempt classification is lawful and whether unpaid overtime may be recoverable.