Linda Heyen successfully convinced a trial court that her employer, Safeway, had misclassified her during at least part of her working hours as "exempt" meaning she should not be paid overtime wages. Heyen was employed as an Assistant Manager, an exempt position, but spent many of her working hours completing tasks that should have been classified as non-exempt, such as bagging or cashiering.
Tired of having to pay club owners for the 'privilege' of providing entertainment for guests of gentlemen's clubs, dancers are fighting back. Improper classification of dancers as independent contractors rather than employees allowed club owners to charge fees to entertainers who made money solely off of the tips of club customers.
Outside sales representatives are generally classified as 'exempt' under the Fair Labor Standards Act (FLSA) and they do not have to be paid overtime for hours spent working beyond 40 hours per week. The United States Supreme Court is currently considering whether drug sales representatives should actually be considered 'non-exempt' under the FLSA and must be paid an overtime premium.
A new law that went into effect in January could have serious consequences for anyone who advises an employer to treat an employee as a contractor, if in fact that classification is knowingly incorrect. The contractor misclassification law is under labor code 2763 and it allows the California Labor and Workforce Development Agency to assess monetary penalties against individuals or employers who violate the law.
There have been many cases filed by those in the workforce that deal with the issue of overtime compensation. State and federal rules govern when overtime is to be paid, and also which categories of workers are entitled to the payments.