California Professional Services Labor Law
California workers who are employed in professional services or consulting roles may find that they are misclassified as independent contractors or as administrative personnel who are not eligible for overtime pay. In both cases, California courts look at the actual job duties performed and the degree of authority the worker has when determining whether a worker is actually an employee and eligible for overtime pay.
California Independent Contractors
Some employees are misclassified as independent contractors so employers can avoid paying benefits and get around wage and hour laws. In determining whether an independent contractor is an employee, the courts look at how much discretion the worker has over his or her job, what degree of control the company has, and other factors. In other words, it is not enough for the employer to classify a worker as an independent contractor; the duties, responsibilities and circumstances surrounding the work must fit certain requirements.
California Professional Service Worker Overtime Pay
In other cases, employers might classify a worker as administrative to avoid paying overtime wages. Again, the courts consider the worker's regular duties and level of discretion when determining if the worker is actually eligible for an overtime exemption. Failure to meet these tests could mean the employee is owed overtime wages.