Exempt Employee Classification Concerns

Summary

In California, exempt employees must meet specific criteria, including a minimum salary of $5,373.33 per month and primarily performing executive, administrative, or professional duties. Salespeople may qualify for an outside sales exemption if they spend more than 50% of their time away from the office. Misclassification can lead to legal issues. If a publication company lies about circulation numbers, report to the FTC or state consumer protection agency. Legal consequences may affect executives and employees involved in false reporting.

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I am an exempt sales employee. I would like to make sure our company is compensating us legally. we have a base salary and a commission plan
Hi Bailey! To provide you with the best information, could you let me know if you are working more than * hours a week and if you are receiving overtime pay?
I am exempt and salaried. I often work over * hours a week and do not receive overtime pay
Hi Bailey! In California, exempt employees are generally not entitled to overtime pay. However, job duties and salary must meet specific criteria to qualify for exempt status:
- Primarily perform executive, administrative, or professional duties.
- Earn a monthly salary equivalent to at least twice the state minimum wage for full-time employment.
Does your role and salary meet these criteria?
I'm not sure. My base salary is $*,* a month before taxes.
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In California, to qualify as an exempt employee, your job duties must primarily involve executive, administrative, or professional duties, and your monthly salary must be at least twice the state minimum wage. For *, the minimum wage is $*.* per hour, so your monthly salary should be at least $*,*.* to meet this criterion. Since your salary is $*,*, you might not meet the salary requirement for exempt status.
Would you like more information on whether your job duties meet the criteria for exempt status?
I am classified as an exempt employee in my employment contract. do the salary requirements apply to salespeople?
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Hi Bailey! Yes, the salary requirements do apply to salespeople, with some exceptions. In California, outside salespeople are exempt from overtime pay if they spend more than *% of their time away from the employer’s place of business selling or obtaining orders. Do you primarily work outside the office?
My schedule can vary, but we are required to be in the office by *:30am Monday-Friday
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Your situation raises potential concerns about your classification as an exempt employee. Since your salary does not meet the minimum requirement for exempt status in California and you are required to be in the office for a significant portion of your time, you might be misclassified.
Would you like more detailed information on your specific job duties or any further legal guidance?
Maybe. If I am away for *% of the time, can they pay me as low of a base salary as they want?
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Hi Bailey! If you spend more than *% of your time away from the office, you may qualify as an exempt outside salesperson, and the minimum salary requirement wouldn't apply. However, it's important to ensure your duties align with the criteria for outside sales employees.
Would you like more information or legal guidance on this issue?
Yes please
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Hi Bailey! To better understand your situation, could you describe your specific job duties and how often you are required to perform them outside the office?
I sell advertising and event sponsorships for a local business publication. I am not often required to perform activities outside of the office. I am expected to go out into the field and meet with clients and prospects, but this is not required by management. I spend *-* hours a week in office as a sales person.
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Hi Bailey! Given that you spend a significant portion of your time in the office and your salary is below the required threshold for exempt employees, you may be misclassified. Here are some points for consideration:
- Exempt status requires a minimum salary of $*,*.* per month.
- Outside sales exemption applies if more than *% of time is spent outside the office.
Would you like to connect with local lawyers who can better assist you with your case?
For the outside sales exemption, does my company need to require this *% requirement? Or is it up to the salesperson to take advantage of leaving the office?
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Hi Bailey! For the outside sales exemption, the *% requirement means that you must spend more than *% of your time away from your employer's place of business. It's not just about taking advantage of leaving the office; your job duties must inherently require you to spend the majority of your time outside.
Would you like more detailed information on how to ensure your classification is correct?
What if my company doesn't stop me from being away from my place of business, but they don't require it?
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Hi Bailey! For the outside sales exemption, the key factor is that your job duties require you to spend more than *% of your time away from the office. If it's merely an option and not a requirement, your classification might be questionable. Would you like more information on how to proceed with this issue?
Thank you! New question: what should I do if a publication company is lying about it's circulation numbers?
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If a publication company is lying about its circulation numbers, here are some steps you can take:
*. Document Evidence: Collect any evidence showing the false circulation numbers.
*. Report to Authorities: Report the issue to the Federal Trade Commission (FTC) or your state's consumer protection agency.
*. Consult a Lawyer: Consider consulting a lawyer for legal advice on potential fraud or misrepresentation claims.
Would you like more information on how to proceed with reporting or legal consultation?
Is it possible to do this anonymously?
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Yes, you can report anonymously to some extent:
- Document Evidence: Collect any evidence showing the false circulation numbers.
- Report to Authorities: You can report anonymously to the Federal Trade Commission (FTC) or your state's consumer protection agency.
- Consult a Lawyer: A lawyer can help you navigate the process while protecting your identity.
Would you like more information on how to proceed with reporting or legal consultation?
Who would get in trouble if the FTC finds the circulation numbers are false?
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If the FTC finds the circulation numbers are false, the company and its responsible officers or employees could face legal consequences. This can include fines, penalties, and potential legal action for fraud or deceptive practices.
Would you like more detailed information on the potential consequences or how to report this?
What kind of employees would face legal consquences
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Employees who could face legal consequences include:
- Executives and management who were aware of or directed the false reporting.
- Employees directly involved in creating or distributing the false circulation numbers.
Would you like more detailed information on how to proceed with reporting this issue?