{"id":1465,"date":"2021-10-25T03:51:39","date_gmt":"2021-10-25T03:51:39","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=1465"},"modified":"2022-05-05T18:37:40","modified_gmt":"2022-05-05T18:37:40","slug":"caci-2721-affirmative-defense-nonpayment-of-overtime-administrative-exemption","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-2721-affirmative-defense-nonpayment-of-overtime-administrative-exemption\/","title":{"rendered":"CACI 2721 Affirmative Defense\u2014Nonpayment of Overtime\u2014Administrative Exemption"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kuurirn3-9c52a63ec2488c6d716d2cc4c5cfa8cb\">\n#top .av-special-heading.av-kuurirn3-9c52a63ec2488c6d716d2cc4c5cfa8cb{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kuurirn3-9c52a63ec2488c6d716d2cc4c5cfa8cb .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kuurirn3-9c52a63ec2488c6d716d2cc4c5cfa8cb .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kuurirn3-9c52a63ec2488c6d716d2cc4c5cfa8cb av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >CACI 2721 Affirmative Defense\u2014Nonpayment of Overtime\u2014Administrative Exemption<\/h1><div class='av-subheading av-subheading_below'><p>California Civil Jury Instructions CACI<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-1  el_after_av_heading  el_before_avia_sc_search '><span class='hr-inner '><span 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avia-builder-el-2  el_after_av_hr  el_before_av_textblock '><search><form action='https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/' id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CACI' aria-label='Search CACI' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='8' \/><input type='hidden' name='post_type' value='page' \/><input type='hidden' name='results_hide_fields' value='post_titles,meta,image' \/><\/div><\/form><\/search><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kuurkcbs-197ac8ca02a44216c07afcb3cc38e195\">\n#top .av_textblock_section.av-kuurkcbs-197ac8ca02a44216c07afcb3cc38e195 .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kuurkcbs-197ac8ca02a44216c07afcb3cc38e195 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">2721\u00a0Affirmative Defense\u2014Nonpayment of Overtime\u2014Administrative Exemption<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] claims that [he\/she\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/it] is not required to pay [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] for overtime because [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] is an administrative employee. [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] is exempt from overtime pay requirements as an administrator if [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] proves all of the following:<\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">1.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s duties and responsibilities involve the performance of office or nonmanual work directly related to management policies or general business operations of [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] or [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s customers;<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">2.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] customarily and regularly exercises discretion and independent judgment;<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">3.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] performs, under general supervision only, specialized or technical work that requires special training, experience, or knowledge;]<\/span><\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">or<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] regularly and directly assists a proprietor or bona fide executive or administrator;]<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">or<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] performs special assignments and tasks under general supervision only;]<\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">4.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] performs administrative duties more than half of the time; and<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">5.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s monthly salary is at least [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">insert amount that is twice the state minimum wage for full time employment<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">].<\/span><\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">In determining whether [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] performs administrative duties more than half of the time, the most important consideration is how [he\/she\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] actually spends [his\/her\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] time. But also consider whether [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s practice differs from [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s realistic expectations of how [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] should spend [his\/her\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] time and the realistic requirements of the job.<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[Each of [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s activities is either an exempt or a nonexempt activity depending on the primary purpose for which [he\/she\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] undertook it at that time. Time spent on an activity is either exempt or nonexempt, not both.] <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New December 2012; Revised June 2014 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>This instruction is an affirmative defense to an employee\u2019s claim for statutory overtime earnings. (See\u00a0CACI No. 2702,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Nonpayment of Overtime Compensation\u2014Essential Factual Elements<\/span>.) The employer claims that the employee is an exempt administrator. (See\u00a0Lab. Code, \u00a7\u2009515(a).) The employer must prove all of the elements. (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Eicher v. Advanced Business Integrators, Inc<\/span>. (2007) 151 Cal.App.4th 1363 1372 [61 Cal.Rptr.3d 114].) For an instruction for the affirmative defense of executive exemption, see\u00a0CACI No. 2720,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Affirmative Defense\u2014Nonpayment of Overtime\u2014Executive Exemption.<\/span><\/p>\n<p>This instruction is based on Industrial Welfare Commission Wage Order 9, which is applicable to the transportation industry. (See\u00a08 Cal. Code Regs., \u00a7\u200911090.) Different wage orders are applicable to different industries. (See\u00a0Lab. Code, \u00a7\u2009515.) The requirements of the administrative exemptions under the various wage orders are essentially the same. (Cf., e.g.,\u00a08 Cal. Code Regs., \u00a7\u200911040, Wage Order 4, applicable to persons employed in professional, technical, clerical, mechanical, and similar occupations.).<\/p>\n<p>The exemption requires that the employee be \u201cprimarily engaged in duties that meet the test of the exemption.\u201d (See\u00a08 Cal. Code Regs., \u00a7\u200911090\u00a0sec. 1(A)(2)(f), sec. 2(J) (\u201cprimarily\u201d means more than one-half the employee\u2019s work time).) This requirement is expressed in element 4. However, the contours of administrative duties are quite detailed in the wage orders, which incorporate federal regulations under the Fair Labor Standards Act and also provide some specific examples. (See also\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Ramirez v. Yosemite Water Co.<\/span>\u00a0(1999) 20 Cal.4th 785, 802 [85 Cal.Rptr.2d 844, 978 P.2d 2].) In many cases, it will be advisable to instruct further with details from the applicable wage order and regulations as to what constitutes \u201cadministrative duties\u201d (element 4) and the meaning of \u201cdirectly related\u201d (element 1).<\/p>\n<p>Include the optional last paragraph if a particular work activity arguably involves more than one purpose and could be characterized as exempt or nonexempt, depending on its primary purpose.<\/p>\n<p>This instruction may be expanded to provide examples of the specific exempt and nonexempt activities relevant to the work at issue. (See, e.g.,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Heyen v. Safeway, Inc.<\/span>\u00a0(2013) 216 Cal.App.4th 795, 808\u2013809 [157 Cal.Rptr.3d 280].) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Exemptions to Overtime Requirements.\u00a0Labor Code section 515(a).<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[T]he assertion of an exemption from the overtime laws is considered to be an affirmative defense, and therefore the employer bears the burden of proving the employee\u2019s exemption.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Ramirez, supra,<\/span>\u00a020 Cal.4th at pp. 794\u2013795.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIn order to establish that [plaintiff] was exempt as an administrative employee, [defendant] was required to show all of the following: (1) his duties and responsibilities involve the performance of office or nonmanual work directly related to management policies or general business operations of [defendant]; (2) he customarily and regularly exercises discretion and independent judgment; (3) he performs work requiring special training, experience, or knowledge under general supervision only (the two alternative prongs of the general supervision element are not pertinent to our discussion); (4) he is primarily engaged in duties that meet the test of exemption; and (5) his monthly salary is equivalent to no less than two times the state minimum wage for full-time employment.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">United Parcel Service Wage &amp; Hour Cases, supra,<\/span>\u00a0190 Cal.App.4th at p. 1028\u00a0[relying on\u00a08 Cal. Code Regs., \u00a7\u200911090, subd. 1(A)(2)].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cRead together, the applicable Labor Code statutes, wage orders, and incorporated federal regulations now provide an explicit and extensive framework for analyzing the administrative exemption.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Harris v. Superior Court<\/span>\u00a0(2011) 53 Cal.4th 170, 182 [135 Cal.Rptr.3d 247, 266 P.3d 953].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cDetermining whether or not all of the elements of the exemption have been established is a fact-intensive inquiry.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">United Parcel Service Wage &amp; Hour Cases<\/span>\u00a0(2010) 190 Cal.App.4th 1001, 1014 [118 Cal.Rptr.3d 834].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cReview of the determination that [plaintiff] was not an exempt employee is a mixed question of law and fact. Whether an employee satisfies the elements of the exemption is a question of fact reviewed for substantial evidence. The appropriate manner of evaluating the employee\u2019s duties is a question of law that we review independently.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Heyen, supra,<\/span>\u00a0216 Cal.App.4th at p. 817, internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe appropriateness of any employee\u2019s classification as exempt must be based on a review of the actual job duties performed by that employee. Wage Order 9 expressly provides that \u2018[t]he\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">work actually performed by the employee during the course of the workweek must, first and foremost, be examined and the amount of time the employee spends on such work,<\/span>\u00a0together with the employer\u2019s realistic expectations and the realistic requirements of the job, shall be considered\u2009\u2026\u2009.\u2019 No bright-line rule can be established classifying everyone with a particular job title as per se exempt or nonexempt\u2014the regulations identify job duties, not job titles. \u2018A job title alone is insufficient to establish the exempt status of an employee. The exempt or nonexempt status of any particular employee must be determined on the basis of whether the employee\u2019s salary and duties meet the requirements of the regulations\u2009\u2026\u2009.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">United Parcel Service Wage &amp; Hour Cases, supra,<\/span>\u00a0190 Cal.App.4th at p. 1014\u20131015, original italics, internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThis is not a day-by-day analysis. The issue is whether the employees \u2018\u2009\u201cspend more than 51% of their time on managerial tasks in any given workweek.\u201d\u2009\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Batze v. Safeway, Inc.<\/span>\u00a0(2017) 10 Cal.App.5th 440, 473, fn. 36 [216 Cal.Rptr.3d 390].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cPut simply, \u2018the regulations do not recognize \u201chybrid\u201d activities\u2014i.e., activities that have both \u201cexempt\u201d and \u201cnonexempt\u201d aspects. Rather, the regulations require that each discrete task be separately classified as either \u201cexempt\u2019 or \u201cnonexempt.\u201d [Citations.]\u2019 [\u00b6] We did not state, however, that the same task must always be labeled exempt or nonexempt: \u2018\u2009[I]dentical tasks may be \u201cexempt\u201d or \u2018nonexempt\u201d based on the purpose they serve within the organization or department.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Batze, supra<\/span>, 10 Cal.App.5th at p. 474.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIn basic terms, the administrative\/production worker dichotomy distinguishes between administrative employees who are primarily engaged in \u2018\u2009\u201cadministering the business affairs of the enterprise\u201d\u2009\u2019 and production-level employees whose \u2018\u2009\u201cprimary duty is producing the commodity or commodities, whether goods or services, that the enterprise exists to produce and market.\u201d [Citation.]\u2019 \u00b6\u00b6\u2009[T]he dichotomy is a judicially created creature of the common law, which has been effectively superseded in this context by the more specific and detailed statutory and regulatory enactments.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Harris, supra<\/span>, 53 Cal.4th at pp. 183, 188.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cWe do not hold that the administrative\/production worker dichotomy \u2026 can never be used as an analytical tool. We merely hold that the Court of Appeal improperly applied the administrative\/production worker dichotomy as a dispositive test. [\u00b6] \u2026 [I]n resolving whether work qualifies as administrative, courts must consider the particular facts before them and apply the language of the statutes and wage orders at issue. Only if those sources fail to provide adequate guidance \u2026 is it appropriate to reach out to other sources.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Harris, supra<\/span>, 53 Cal.4th at p. 190.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[T]he federal regulations incorporated into Wage Order 7 do not support the \u2018multi-tasking\u2019 standard proposed by [defendant]. Instead, they suggest, as the trial court correctly instructed the jury, that the trier of fact must categorize tasks as either \u2018exempt\u2019 or \u2018nonexempt\u2019 based on the purpose for which [plaintiff] undertook them.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Heyen, supra<\/span>, 216 Cal.App.4th at p. 826.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cWage Order 4 refers to compensation in the form of a \u2018salary.\u2019 It does not define the term. The regulation does not use a more generic term, such as \u2018compensation\u2019 or \u2018pay.\u2019 Either of these terms would encompass hourly wages, a fixed annual salary, and anything in between. \u2018Salary\u2019 is a more specific form of compensation. A salary is generally understood to be a fixed rate of pay as distinguished from an hourly wage. Thus, use of the word \u2018salary\u2019 implies that an exempt employee\u2019s pay must be something other than an hourly wage. California\u2019s Labor Commission noted in an opinion letter dated March 1, 2002, that the Division of Labor Standards Enforcement (DLSE) construes the IWC wage orders to incorporate the federal salary-basis test for purposes of determining whether an employee is exempt or nonexempt.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Negri v. Koning &amp; Associates<\/span>\u00a0(2013) 216 Cal.App.4th 392, 397\u2013398 [156 Cal.Rptr.3d 697, footnote omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[T]he costs incurred by an employer to provide an employee with board, lodging or other facilities may not count towards the minimum salary amount required for exemption\u2009\u2026\u2009.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Kao v. Holiday<\/span>\u00a0(2017) 12 Cal.App.5th 947, 958 [219 Cal.Rptr.3d 580].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe rule is that state law requirements for exemption from overtime pay must be at least as protective of the employee as the corresponding federal standards. Since federal law requires that, in order to meet the salary basis test for exemption the employee would have to be paid a predetermined amount that is not subject to reduction based upon the number of hours worked, state law requirements must be at least as protective.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Negri, supra<\/span>, 216 Cal.App.4th at p. 398.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cUnder California law, to determine whether an employee was properly classified as \u2018exempt,\u2019 the trier of fact must look not only to the \u2018work actually performed by the employee during the \u2026 workweek,\u2019 but also to the \u2018employer\u2019s realistic expectations and the realistic requirements of the job.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Heyen, supra<\/span>, 216 Cal.App.4th at p. 828.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cHaving recognized California\u2019s distinctive quantitative approach to determining which employees are outside salespersons, we must then address an issue implicitly raised by the parties that caused some confusion in the trial court and the Court of Appeal: Is the number of hours worked in sales-related activities to be determined by the number of hours that the employer, according to its job description or its estimate, claims the employee should be working in sales, or should it be determined by the actual average hours the employee spent on sales activity? The logic inherent in the IWC\u2019s quantitative definition of outside salesperson dictates that neither alternative would be wholly satisfactory. On the one hand, if hours worked on sales were determined through an employer\u2019s job description, then the employer could make an employee exempt from overtime laws solely by fashioning an idealized job description that had little basis in reality. On the other hand, an employee who is supposed to be engaged in sales activities during most of his working hours and falls below the 50 percent mark due to his own substandard performance should not thereby be able to evade a valid exemption. A trial court, in determining whether the employee is an outside salesperson, must steer clear of these two pitfalls by inquiring into the\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">realistic<\/span>\u00a0requirements of the job. In so doing, the court should consider, first and foremost, how the employee actually spends his or her time. But the trial court should also consider whether the employee\u2019s practice diverges from the employer\u2019s realistic expectations, whether there was any concrete expression of employer displeasure over an employee\u2019s substandard performance, and whether these expressions were themselves realistic given the actual overall requirements of the job.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Ramirez, supra<\/span>, 20 Cal.4th at pp. 801\u2013802, original italics.) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>3 Witkin, Summary of California Law (11th ed. 2017) Agency and Employment, \u00a7\u2009392 et seq.<\/div>\n<div>Chin et al., California Practice Guide: Employment Litigation, Ch. 11-B,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Coverage And Exemptions\u2014In General<\/span>, \u00b6\u200911:345 et seq. (The Rutter Group)<\/div>\n<div>1\u00a0Wilcox, California Employment Law, Ch. 2,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Minimum Wages<\/span>, \u00a7\u20092.04\u00a0(Matthew Bender)<\/div>\n<div>11\u00a0California Forms of Pleading and Practice, Ch. 250,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Employment Law: Wage and Hour Disputes<\/span>, \u00a7\u2009250.71\u00a0(Matthew Bender)<\/div>\n<div>Simmons, Wage and Hour Manual for California Employers, Ch. 2,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Coverage of Wage and Hour Laws<\/span>\u00a0(Castle Publications Limited)<\/div>\n<div>Simmons, Wage and Hour Manual for California Employers, Ch. 10,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Exemptions<\/span>\u00a0(Castle Publications Limited)<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-80kem1-1af54edfc116bd774c82a89439d688ad hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-551rnt-5e46ecd5f3b36b4900545471a8781c0a\">\n#top .av_textblock_section.av-551rnt-5e46ecd5f3b36b4900545471a8781c0a .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-551rnt-5e46ecd5f3b36b4900545471a8781c0a '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-1465","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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