The administrative exemption to overtime is typically the most difficult exemption for employers and courts to apply under both federal and state law, and that is equally true in California. In this episode, Harry covers the California Supreme Court decision Harris v. Superior Court (Liberty Mutual Ins. Co.), Case No. S156555, (December 29, 2011), which attempted to clear up some earlier confusion surrounding the administrative exemption test. At issue in Harris was whether insurance company claims adjusters were administratively exempt employees, and thus not entitled to overtime compensation under the California Labor Code and regulations, specifically California’s Wage Order 4. Harry discusses how and why Harris reversed the lower California Court of Appeal’s decision for misapplying the administrative exemption. Harry covers the new analysis introduced in Harris, and what aspects of an employee’s work are more likely to be held to fit the administrative exemption under this analysis. Specifically, Harry delves into how the California administrative exemption’s “duties test” now minimizes courts’ reliance on the previously dominant “administrative-production dichotomy.” Finally, Harry offers important takeaways for employers in proactively drafting job descriptions and auditing administrative employees for wage-hour purposes in the wake of Harris. Harry also covers his least favorite popular expression. And, special appearances by Alexander The Great, the Gordian Knot, and the origins of the Occupy The Administrative Exemption Movement.

For a downloadable handout of the takeaways from Harris, click here.

About After Hours
After Hours is designed primarily for in-house counsel and Human Resources professionals who deal with employment law matters. Using individual podcasts devoted to discrete issues, Harry covers both best practices for legal compliance and recent developments in employment law. The program draws from the realm of wage-hour law, union/management legal and collective bargaining issues, and the wide range of employment law issues generally, but with a particular emphasis on California law and legal developments. Harry hopes to offer the viewer a valuable, informative but also humorous perspective, all in the context of a brief podcast that you can watch at your convenience from your device. After Hours will have new podcasts every one to three weeks. The program is available for automatic download to your computer and mobile device through iTunes.