Rachel B. Lerner
Mon., September 30, 2024
On September 23, 2024, a federal judge in the Northern District of California ruled that recruiters at a tech staffing company did not qualify for the state wage and hour law’s administrative exemption and were eligible for overtime. Plaintiffs are recruiters at TEK, an IT staffing and services company. The recruiters screen and source possible IT consultants to find those who match the job requirements provided by TEK’s clients.
Generally, the Fair Labor Standards Act, which is the federal wage and hour law, requires employers to pay overtime at time and one-half for hours worked in excess of forty per week. The law, however, includes exemptions for executive, administrative, and professional employees. California’s wage law contains a similar exemption.
The judge found that the recruiters engaged in the day-to-day operations of carrying out TEK’s business (which is finding talent for its clients) rather than performing work related to the management or general business operations of TEK. Further, the judge found that the recruiters did not exercise discretion and independent judgment on matters of significance. Therefore, the recruiters are not exempt from overtime requirements under the administrative exemption.
McGillivary Steele Elkin LLP represents employees who have been wrongly classified as exempt from overtime pay protections. If you believe you are entitled to overtime pay, please contact us at info@mselaborlaw.com.
