More people are working from home or splitting time between home and the office. This new way of working creates challenges for employers to follow wage and hour laws. Employers must decide if workers are “exempt” or “non-exempt” to avoid legal trouble.
What does exempt versus non-exempt mean?
The Fair Labor Standards Act (FLSA) defines the difference between exempt and non-exempt employees. Exempt employees usually earn a salary and perform certain types of jobs, like managing or professional roles. Non-exempt employees earn hourly wages and qualify for overtime pay after working more than 40 hours a week. Employers evaluate the actual tasks a person performs, not just their job title, to classify them correctly.
Issues with remote work
Remote work makes it harder to track what employees do and how many hours they work. Employers must confirm that remote workers meet the “exempt” requirements based on their duties. For non-exempt workers, tracking hours requires reliable tools, such as time-tracking systems, to ensure compliance with overtime rules.
Problems with hybrid work
Hybrid work models, where employees split time between home and the office, add complications. Employers must track work hours accurately in both locations and communicate clear rules about working overtime. Establishing these rules prevents confusion and mistakes.
Knowing California laws
California enforces some of the strictest wage and hour regulations in the country. Employers must comply with state-specific rules, including daily overtime pay, meal and rest break requirements, and strict penalties for non-compliance. For example, California law requires overtime pay after 8 hours in a single day and double time after 12 hours. Employers must also provide a 30-minute unpaid meal break for shifts over 5 hours. Failure to follow these rules can result in significant fines and legal action. Employers managing remote or hybrid workers in California must carefully track work hours to stay compliant.
How employers can follow the rules
Employers can reduce risks by regularly reviewing employee classifications and updating work policies. Training managers and staff on wage and hour laws ensures they handle these challenges effectively. Staying proactive helps employers manage teams fairly, legally, and clearly.
Employers who remain flexible and organized can adapt to remote and hybrid work models. Clear communication and consistent rule enforcement create a smooth work environment for everyone.