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Overtime Exemption

Managerial Overtime Exemption

In the case of Murphy v. Kenneth Cole (12/2/05), the Court clarified CA law regarding overtime exemption.

Facts of the case:

  • Plaintiff Murphy was the store manager of a Kenneth Cole store.
  • However, the District Manager made the ultimate decisions for all store issues, including hiring and firing. Murphy could only call attention to problems in the store and needed the District Manager's approval in carrying out changes.
  • Murphy blindly followed the procedures in the store's operations manual.
  • The security policy of the store required that Murphy be with another employee on the sales floor at all times.
  • Murphy neither performed managerial tasks nor received commission.
  • The Court held that Murphy was not exempt from overtime.

Law regarding Managerial Overtime Exemption

  • The California Code of Regulations states that the executive exemption applies to any person:
    • Whose duties and responsibilities involve management of the enterprise (or department or subdivision);
    • Who regularly supervises two or more employees;
    • Who has the authority to hire or fire employees, or whose recommendations regarding hiring/firing/promotion/etc. are given great weight;
    • Who regularly exercises discretion and independent judgment; and
    • Who is primarily engaged in duties that meet the exemption test.
      • Primarily means that the employee must spend more than half his worktime being engaged in exempt duties

What You Should Do

Consult an attorney if you believe that your employer is unfairly claiming you as exempt from overtime. You will need to fully discuss your duties and responsibilities and how much time is spent performing exempt managerial duties. There are additional exemptions that your employer may claim, which you may also need to discuss with your attorney.

Employee Rights Attorney Frank Pray

5160 Campus Drive

Newport Beach CA 92660

949.251.1006

877.job.atty


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