January 19, 2012

 
 

Reporting Time, Split Shift Pay Ruling

A California court ruled favorably in a case concerning two technical wage and hour rules that can cause confusion for employers: reporting time pay and split shift pay.

In a case of first impression, the​ court ruled that employees who came to work for short, scheduled meetings were not entitled to additional reporting time pay. The court also said that employees are not entitled to a split shift premium if their pay for the day already exceeds the minimum wage for all hours worked plus one additional hour. Aleman v. AirTouch Cellular, 2011 WL 6382127 (2011)

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Administrative Exemption Not Settled

The California Supreme Court finally issued its decision in Harris v. Superior Court, rejecting a lower court’s interpretation of the “administrative exemption” from overtime. Unfortunately, the case provides limited guidance to employers on how to apply the exemption. Harris v. Superior Court, 2011 WL 6823963 (2011)

The administrative exemption has long been a source of confusion for employers, who sought guidance on what exactly qualifies as “administrative work” for the administrative exemption.

With classification mistakes potentially erupting into class action lawsuits, employers were hoping for a clearly defined standard from the state high court — only to be disappointed.

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