California Labor Law and the "Science of Overtime"

California labor law and California overtime issues are shaking up the world of science. Many employees that one may think are relatively high level in terms of job title and income, and not entitled to overtime pay, actually are entitled to overtime pay. If you are a research scientist, research associate, research technician, laboratory technician, quality technician, laboratory analyst, or quality analyst you may indeed be entitled to overtime pay. Even more importantly, the burden of keeping time records lies on the employer. Therefore, in the event these employees are misclassified and determined to be non-exempt and entitled to overtime pay, if the employer failed to keep time records, the courts will rely on the reasonable testimony of the employee as to the hours worked.

It has been the long standing policy of many of the largest pharmaceutical companies and science and research companies to simply classify many of these job titles as “exempt” and not entitled to California overtime pay. In many instances, nothing could be further from the truth. The majority of these jobs require little independent judgment and discretion or meet the other strict criteria of exemptions from California overtime.

If an employee in any of these jobs titles, has been deprived of California overtime pay, under the law, such employees may be able to go back up to 4 years and collect their rightful overtime, interest and possibly some penalties under certain circumstances. Moreover, in California when bringing an overtime claim, there is a “one way” attorney fees clause whereby if the employee prevails they are entitled to recover their attorney fees. The opposite is not true for the employer. Their legal fees in defending a legitimate overtime claim are not recoverable.

Companies in the industries that may employ these types of employees discussed in this article are:

Abbott Laboratories (ABT) Biogen Idec Inc (BIB) Exelixis, Inc. (EXEL)  Pfizer, Inc. (PFE) 
ACADIA Pharmaceuticals Inc. (ACAD) BioMedica  Genentech Prometheus Laboratories 
Accumetrics Biosite Diagnostics  Gen-Probe Incorporated (GPRO Salk Institute 
ADVENTRX Pharmaceuticals, Inc. (ANX) Boston Scientific Corporation (BSX Genomatica  The Scripps Research Institute 
Agilent Technologies, Inc. (A) BrainCells  Genzyme Corporation (GENZ Senomyx, Inc. (SNMX) 
Alliance Pharmaceutical Corp. (ALLP) Burnham Institute  Gmbh Sequel Pharmaceuticals 
Allylix Cadence Pharmaceuticals, Inc. (CADX)  Halozyme Therapeutics, Inc. (HALO)  Sequenom, Inc. (SQNM)
Ambit Biosciences Calmune HUYA Bioscience International  Siemens AG (SI) 
Amgen Inc (AMGN), Carolus Therapeutics  Ichor Medical Systems  SRI/Surgical Express, Inc. (STRC)
Amira Pharmaceuticals Cato Research  Inovio Biomedical  Strategic Enzyme Applications 
Amylin Pharmaceuticals, Inc (AMLN), Celgene Corporation (CELG)  Invitrogen  Tracon Pharmaceuticals 
Anadys Pharmaceuticals, Inc. (ANDS) Ceregene  Ligand Pharmaceuticals Incorporated (LGND Tragara Pharmaceuticals 
AnaptysBio Charles River Laboratories International, Inc. (CRL)  MabVax Therapeutics  VentiRx Pharmaceuticals 
Arena Pharmaceuticals, Inc. (ARNA) ChemDiv  McGaw Vertex Pharmaceuticals Incorporated (VRTX) 
Baxter International Inc. (BAX)  Clinimetrics  Mixture Sciences  Vical Incorporated (VICL)
Beckman Coulter, Inc. (BEC)  Conatus Pharmaceuticals  MultiGEN Diagnostics  Zacharon Pharmaceuticals 
Becton Dickinson  Cypress Bioscience, Inc. (CYPB)  Neurocrine Biosciences, Inc. (NBIX)   
BioAtla  Elan  Novartis AG (NVS)   
Biocept  Eli Lilly and Company (LLY) Ocera Therapeutics   

 

At United Employees Law Group, we have handled and are currently handling over 700 individual cases and over 150 class action cases, many against some of the largest corporations in the United States.

It is important to understand that if you believe you have a claim, you need to speak to a California employment attorney immediately as there are statutes that govern the time limit that you have to file your claim(s). Time is of the essence.

To be certain as to whether or not you are entitled to California overtime pay, it is important to talk to a qualified and experienced California labor law attorney.

CALIFORNIA CLASS ACTIONS FOR OVERTIME CONTINUE TO GROW

Despite a wave of class action lawsuits, California employers continue to find ways to deny their workers overtime pay. Under California law, all employees are entitled to overtime pay unless they are considered “exempt.” Exempt employees are typically professionals, administrators, or executives whose jobs require among other things, a high degree of independent judgment. They must earn at least two times the minimum wage (approximately $28,000 per year) and more than fifty percent of their work must consist of non-exempt duties such as clerical duties, customer service, or working along specialized technical lines. A common strategy for employers is to misclassify employees as managers or assistant managers in order to avoid paying overtime; however, it is the employee’s activity and not their job title that determines whether overtime is due. Unlike federal law that focuses on the “primary duty” an employee is expected to perform, California law is based on what work the employee “engages in” or actually performs. For example, if a “manager” in an automobile company spends more than half of their time working on the line – the same activities performed by non-exempt employees – that manager may be entitled to overtime pay for all time in excess of 8 hours per day or 40 hours per week.

Many times, an effective way to combat such tactics by employers is for an employee to file a class action lawsuit. If one individual files a lawsuit and prevails, the amount the employer pays will likely not be enough to change the employer’s wrongful practices. Most employers conduct a cost-benefit analysis. Typically, it is cheaper for them to account for paying one or two employees in a lawsuit than paying all employees overtime pay. On the other hand, if one worker brings a lawsuit on behalf of all similarly situated workers, the amount potentially owed by the employer will be significantly more substantial and thus give them an incentive to comply with the law. Furthermore, an employee who takes the initiative to file a class action will typically be awarded more money than those workers who sat idly by and did nothing. Many class actions for overtime pay are successful because employers do not keep a record of exempt employees’ hours or the activities they engage in on a daily basis. Even better, in California, a single class representative may initiate a California class action lawsuit.

In addition to “misclassification,” some employers will pay overtime but not at the required one and a half times the employee’s regular rate of pay. Other typical class action lawsuits include claims for missed meal breaks and rest breaks, failure to pay for business miles or travel time to/from different business locations, paying bonuses but not paying overtime, making employees pay for their uniforms, paying employees with a check that requires a fee to cash, and not paying for mandatory company meetings.

If you believe you are owed overtime or other pay, you could be awarded damages in a class action lawsuit. Contact a knowledgeable California labor law attorney to learn about your rights and receive a complete evaluation of your situation.
 

California Layoffs and Why Computer and IT Employees are Suffering So Much

California and especially the Silicon Valley has long been the hub of computer and software manufacturing in the United States.

With recent layoffs by Yahoo , Hewlett Packard , Lockheed Martin, and others, IT and computer professionals are facing challenges they have never seen in the past.

With the advent of the H1B workers that are entering this company in droves as well as thousands of jobs that are shipped overseas, the laid off computer employee is having fewer and fewer options.

One saving grace, and a little known part of the California labor law is that most computer and IT employees are in fact entitled to overtime pay.

California computer employees are offered additional protections under California labor code 515.5. , Under this statute, those that meet the definition of a computer software professional ie. Code writers, must be paid the minimum under the law and unless otherwise exempt, are entitled to overtime pay.”

At a time when the bills keep coming in and the income has all but stopped or is just trickling in, computer employees are encouraged to find out If they are entitled to back overtime pay.

Employees in California may look back up to 4 years to determine, if they are, in fact entitled to back overtime pay. Furthermore, if they were misclassified, they could be entitled to not just their back overtime pay, but interest and possibly penalties as well. Knowledge is power.

 

Strategy:

1. Gather a paystub or W-2
2. Gather one or more performance evaluations or a job description.
3. Tally or estimate the total hours you worked without being paid overtime.
4. Contact a California labor law attorney to assist you in determining if you are entitled to overtime pay.
 

Top Three Factors to Determine Employee v. Independent Contractor

Under California labor law what determines whether a worker is an independent contractor or an employee depends on several different things, all of which must be well thought-out, but none of which is a sole determinant.

Among many factors are these three important considerations:

  • Does the employer have direct control or the power to control the manner and means used by the worker to carry out his/ her work?
  • Does the employer supply the worker with the tools and place to implement the work?
  • Does the worker have a set schedule or is he/ she at liberty to establish his own schedule?

Generally, California labor law dictates that the more control an employer has over a worker's day-to-day responsibilities, the more likely the worker is an employee. The less control an employer has over a worker's day-to-day responsibilities, the more likely the worker is an independent contractor.

What is the impact of a misclassification of workers?

Whether the misclassification of workers by employers is deliberate or not deliberate, the consequence to the employer is the same. California labor law imposes costly penalties on employers who have improperly classified an employee as an independent contractor. Depending on the circumstances, an employer may also be liable for other damages under applicable laws, such as a judgment for wages owed, payroll taxes or medical expenses for a worker who has been injured on the job. California labor laws as well as federal labor laws are strict when it comes to allowing for independent contractor status.

Misclassification of independent contractors prevents workers from enjoying the benefits and protections afforded employees under many of today's California labor laws, including minimum wage and overtime, meal and rest periods, workers' compensation, unemployment and disability insurance benefits and anti-discrimination laws. Talk to a California labor law attorney when deciding on classification- it is an “ounce of prevention.”