Employees suffer a significant difference in pay when misclassified as exempt employees. Some companies misclassify employees as exempt in order to avoid overtime pay and to save on labor costs.
The term "exempt" properly only applies to a limited number of employees in any company. An employee's job tasks determine whether an employer may classify an employee as exempt from overtime pay regulations, and not an arbitrary decision by an employer.
An employer's misclassification of an employee as exempt is illegal. Some employers go as far as requiring employees to sign an employment agreement. Under California law, an employee cannot sign away certain legal rights in an employment agreement or waiver. Even if an employee has been working on salary for many years, and feels as if rights to overtime pay have been violated, his or her employment contract may be illegal or void.
Our firm aggressively protects employees in preventing, and receiving just compensation for, an employer's exempt misclassification.