California Wage and Hour Law Landscape

Episode Overview

This episode provides a comprehensive deep dive into the high-stakes, detailed world of California wage and hour compliance. The discussion examines the enormous risks of getting even small things wrong, which can lead to massive multi-million dollar lawsuits. The episode unpacks who is exempt from overtime, how alternative schedules can backfire, why every minute counts, and how remote work has created a huge jurisdictional puzzle. The focus is on understanding the specific things that make California different, with compliance serving as a fundamental business shield rather than just a bureaucratic headache. The state's laws around mandatory breaks and precise timekeeping are often much stricter than federal FLSA rules, and even small mistakes can trigger huge exposure under unique mechanisms like PAGA (Private Attorneys General Act).

Main Sections

I. Salary Threshold and Exemption Foundation

A. 2025 Minimum Wage and Salary Thresholds

• State Minimum Wage: $16.50 per hour effective January 1, 2025
• Universal Application: Applies to all employers regardless of size
• Salary Test Requirement: Monthly salary must be at least 2x minimum wage for full-time work
• Calculation Method: $16.50 × 2,080 hours × 2 ÷ 12 months
• Minimum Monthly Salary: $5,720 per month starting January 1, 2025
• Compliance Trip Wire: Even $1 less than threshold makes employee non-exempt
• Automatic Overtime: Eligible for overtime regardless of title or duties

B. Three-Legged Stool for Exemptions

• Salary Level: Must meet $5,720 monthly minimum
• Salary Basis: Fixed amount regardless of quality/quantity of work
• Duties Test: Must satisfy all criteria in California wage orders
• Dual Compliance: Must qualify under both federal and state law
• California Priority: California's higher threshold governs

C. Executive Exemption Requirements

• Primarily Engaged: Must spend more than 50% of work time on exempt duties
• Management Focus: More than half time on managing duties
• Higher Standard: California requires 51% vs. other states' 40%
• Supervision Requirement: Must customarily and regularly direct 2+ full-time employees
• Equivalent Calculation: Can count part-timers (e.g., 1 full-time + 2 part-time at 20 hours each)
• Hiring/Firing Authority: Either actual authority or recommendations with "particular weight"
• Particular Weight Test: Regular part of job, suggestions usually followed, influential in personnel policy

D. Administrative Exemption Requirements

• Office/Non-Manual Work: Must be mainly office or non-manual work
• Management Policy Related: Directly related to management policies or general business operations
• Business Servicing: Functions that support overall company operations
• Examples: Tax, finance, accounting, budgeting, quality control, HR, legal, advertising, marketing, research
• Production Exclusion: Cannot be related to production or core sales activity
• Assistance Requirements: Regularly assisting proprietor/executive or specialized technical work
• Discretion and Judgment: Must require regular use of discretion and independent judgment
• Matters of Significance: Real decision-making power impacting business

E. Professional Exemption Requirements

• Licensed Professionals: Law, medicine, dentistry, optometry, architecture, engineering, teaching, accounting
• Learned Profession: Work based on advanced knowledge, primarily intellectual, prolonged specialized study
• Artistic Profession: Original and creative work relying on invention, imagination, talent
• Examples: Scientists, actuaries, composers, novelists, highly original graphic designers
• Routine Work Trap: Highly skilled but routine/technical work doesn't qualify
• Doctor/Surgeon Exception: Don't need $5,720 if paid minimum hourly rate set by state
• CPI Adjustment: Minimum rate adjusted annually based on California Consumer Price Index

F. Computer Software Employee Exemption

• Specific Duties: Highly skilled work like systems analysis, software design/development, testing, documentation
• Higher Compensation Floor: Not just standard $5,720, specific higher minimums mandated by statute
• Annual Increases: Minimums go up every year
• 2025 Minimums: $56.97/hour, $9,646.96/month, $118,657.43/year
• Hard Statutory Floor: Not discretionary, not tied to performance reviews
• Automatic Non-Exempt: Fail to meet exact minimum = automatically non-exempt
• Budgeting Challenge: Statutory increases may exceed company raise pools

G. Outside Sales Exemption

• Age Requirement: Must be 18 or older
• 50% Rule: Must spend more than 50% of working time away from employer's place of business
• Sales Activities: Making sales, getting orders or contracts
• Incidental Work Limit: Incidental work cannot exceed 50% of time
• Examples: Delivering product, setting up, light repair/maintenance
• Combined Time: Non-selling support tasks can push over 50% threshold
• Exemption Loss: Exceed 50% non-exempt work = lose exemption

II. Alternative Work Schedules and Premium Pay

A. Alternative Work Schedule (AWS) Options

• 4/10 Schedule: 4 ten-hour days with no daily overtime until after 10 hours
• 9/80 Schedule: 80 hours over 9 days with one day off every other week
• Flexibility Benefit: Allows modification of standard 8-hour daily overtime rules
• Implementation Complexity: Incredibly complex procedural requirements

B. AWS Implementation Process

• Written Proposal: Detailed written proposal outlining exact schedule
• Written Disclosure: Must explain impact on wages, hours, and benefits
• Translation Requirement: If 5%+ of workforce speaks non-English as primary language
• Accurate Translation: Must be accurately translated into that language
• Invalidation Risk: Flawed translation can invalidate entire AWS election
• Retroactive Liability: Years of daily overtime potentially due retroactively

C. AWS Voting Requirements

• 2/3 Supermajority: Requires 2/3 supermajority vote of affected employees
• Secret Ballot: Must be secret ballot during regular work hours at work site
• Employer Payment: Employer pays for entire process
• Neutrality Requirement: Employer explicitly forbidden from campaigning
• Remote Work Challenge: Electronic voting must prove same security as paper ballot
• Coercion Risk: Any hint of coercion could invalidate entire AWS

D. AWS Overtime Calculations

• Daily Overtime: 1.5x for hours over scheduled hours (e.g., over 10 in 4/10)
• Weekly Overtime: 1.5x for hours over 40 in work week
• Double Time: 2x for hours over 12 in single work day
• Example: 14 hours on 4/10 schedule = 4 hours overtime
• Hours 11-12: 1.5x rate
• Hours 13-14: 2x rate
• Expensive Overtime: Multiple premium rates make overtime very expensive

E. Regular Rate of Pay Calculation

• Not Base Wage: Not just employee's base hourly wage
• Weighted Average: Calculated for each specific work week
• All Compensation: Must include almost all forms of compensation
• Examples: Non-discretionary bonuses, commissions, shift differentials, piece rate earnings
• Weekly Calculation: $500 bonus spread over all hours worked that week
• Higher Effective Rate: Higher rate used for 1.5x and 2x overtime calculations
• Ripple Effect: One calculation error affects all overtime and premium pay
• Systemic Risk: Error can create underpayments across hundreds of employees

III. Meal and Rest Break Requirements

A. Rest Break Rules

• Paid Breaks: 10-minute paid rest breaks
• Authorization Required: Must authorize and permit (make realistically possible)
• Timing Rule: One break for every 4 hours worked or major fraction thereof
• Major Fraction: 3.5 hours or more triggers break requirement
• Break Distribution: 3.5-6 hours = 1 break, 6-10 hours = 2 breaks, 10-14 hours = 3 breaks
• Middle Timing: Should fall near middle of each 4-hour work period
• No Combining: Cannot combine with each other or meal breaks
• Complete Relief: Must be completely relieved of all duty
• Premises Freedom: Permitted to leave premises if desired

B. Meal Period Rules

• Unpaid 30 Minutes: 30-minute unpaid meal break
• 5-Hour Trigger: Required for work periods over 5 hours
• Timing Requirement: Must start no later than end of 5th hour
• Second Meal: Required for shifts over 10 hours
• Waiver Restrictions: Very limited circumstances for waivers
• First Meal Waiver: Only if total work day is 6 hours or less
• Second Meal Waiver: Only if first meal was actually taken
• On-Duty Meal: Extremely restricted, requires written agreement
• Revocable Agreement: Employee can revoke at any time

C. Break Violation Penalties

• One Hour Pay: Additional hour of pay at regular rate for each violation day
• Multiple Violations: Meal + rest break violation = 2 hours penalty pay same day
• Regular Rate Impact: Penalty calculated at regular rate (affected by bonus errors)
• Compounding Effect: Regular rate error affects penalty payment too
• Daily Penalties: Each work day with violation triggers separate penalty

D. Reporting Time Pay

• Purpose: Compensate employees who show up but don't get scheduled hours
• Encouragement: Encourages employers to schedule more reliably
• Calculation: Pay for half scheduled shift if less than half hours worked
• Minimum: Cannot be less than 2 hours pay
• Maximum: Cannot be more than 4 hours pay
• Examples: 8-hour shift, work 1 hour = 4 hours total pay
• Second Report: Second report same day requires 2 hours minimum pay
• Broad Trigger: Includes logging into remote systems, calling to check if needed

E. Reporting Time Exceptions

• Threats: Threats to employees or property (bomb threat)
• Public Utilities: Failure of public utilities (power outage, water main break)
• Act of God: Earthquake, major flood
• Not Exceptions: Poor performance, slow business, internal operational issues

IV. Compensable Time and Timekeeping

A. California's Rejection of De Minimis Rule

• Federal Rule: FLSA allows ignoring insignificant amounts of time
• California Rejection: Emphatically rejects federal rule for regularly occurring work
• Troster v. Starbucks: State Supreme Court called federal rule outdated
• Regular Work: If work is required and happens regularly, must be compensated
• Technology Available: Modern timekeeping systems can track accurately
• No Excuse: Cannot say it's too hard to track regular tasks

B. Troster v. Starbucks Case

• Facts: 4-10 minutes after clocking out daily for closing tasks
• Duration: 17 months, 13 hours total unpaid time
• Value: $102.67 total
• Court Ruling: Must pay for required regular work regardless of duration
• Implication: Any mandatory regular task must be tracked and paid
• PAGA Multiplication: $102 claim × thousands of employees × years = massive liability

C. Ward v. CSI Electrical Contractors Expansion

• Security Checks: Time spent on mandatory security screenings is compensable
• Employer Control: Still under employer's control during process
• Bag Checks: Visual inspections of personal vehicles before leaving
• Travel Time: Travel between security gate and parking lot is compensable
• Large Facilities: Huge impact for distribution centers, manufacturing plants, corporate campuses
• Meal Break Impact: Required to stay on premises may affect meal break status

D. Timekeeping Requirements

• Accurate Records: Must show exact start/end times of each work period
• Meal Periods: Must track meal periods and split shifts
• Actual Punch Times: Cannot rely on posted schedule
• Rounding Permitted: Can round to nearest 5 minutes, 10th, or quarter hour
• Neutrality Requirement: Must be neutral/fair over time
• Illegal Rounding: Always rounding down arrivals, up departures is illegal
• Wage Theft: Non-neutral rounding is considered wage theft
• Risk Avoidance: Many employers moving away from rounding entirely

E. Pay Stub Requirements

• Gross Wages: Total wages earned
• Total Hours: Hours worked (not required for salary exempt)
• Piece Rate Units: Units and applicable rate if applicable
• Deductions: All deductions taken
• Net Wages: Net wages paid
• Pay Period Dates: Dates of the pay period
• Employee Info: Name and last 4 of SSN or ID number
• Employer Info: Legal name and address
• Hourly Rates: All applicable hourly rates during pay period
• Hours at Each Rate: Corresponding hours worked at each rate
• Separate Listing: Cannot lump different rates together
• Record Retention: Must keep records for at least 3 years

V. Remote Work and Jurisdictional Issues

A. Multi-State Jurisdiction Complexity

• Distributed Workforce: Massive strategic headache for companies
• California Aggressiveness: Extremely aggressive about applying its laws
• Balancing Test: States use factors to determine applicable law
• Service Location: Where service is actually performed
• Base of Operations: Where employee's base of operations is located
• Direction and Control: Where direction and control comes from
• Employee Residence: Where employee resides

B. California's Jurisdictional Approach

• Primary Work Location: Focus on where employee primarily performs work
• Base of Operations: Look to base of operations if no single state
• Resident Protection: California residents protected by California law
• Employer Location: California-based employer increases California law application
• Traveling Employees: Even when working outside California

C. Bernstein v. Virgin America Decision

• California Residents: Protected by California overtime laws even when working outside California
• California Employer: California-based employer triggers California law
• Flight Attendants: California meal/rest break laws apply regardless of residence
• Federal Airspace: Even when most work time in federal airspace or other states
• Law Follows Employee: California law follows California residents
• Employer Risk: California HQ significantly increases California law application

VI. Independent Contractor Classification

A. ABC Test Requirements

• Legal Presumption: Worker presumed to be employee
• Employer Burden: Must prove all three prongs to be independent contractor
• All Three Required: Fail any one prong = employee
• Strictest Test: Strictest independent contractor test in country
• Industry Impact: Upended entire industries

B. Prong A - Control

• Freedom from Control: Must be free from control and direction
• Contract and Practice: Both according to contract and actual practice
• Minimal Supervision: Set own hours, use own tools
• Independent Operation: Generally independent operation required

C. Prong B - Usual Course of Business

• Outside Core Business: Must be outside usual course of hiring entity's business
• Bakery Example: Plumber fixing leak = outside, baker baking bread = inside
• Tech Company: Software developer for software company likely fails
• Telehealth: Nurse practitioner for telehealth company likely fails
• Toughest Hurdle: Often the most difficult prong to satisfy

D. Prong C - Independent Business

• Established Trade: Must be customarily engaged in independently established trade
• Same Type Work: Of same type as work for hiring entity
• Multiple Clients: Cannot be solely reliant on one hiring entity
• Business License: Own business license, market services
• Independent Business: Truly independent business required

E. Statutory Exemptions

• AB 5 and AB 2257: Created exemptions from ABC test
• Licensed Professionals: Doctors, dentists, lawyers, accountants, engineers
• Insurance Agents: Certain licensed professionals
• Creative Workers: Specific licensed creatives
• B2B Relationships: Specific business-to-business contracting
• Referral Agencies: Referral agency relationships
• Borello Test: Exemptions use older, more flexible multifactor test
• Support Functions: Many support roles still subject to ABC test

F. Federal PRO Act Potential

• Similar ABC Test: Proposes ABC-like test for NLRA purposes
• Union Organizing: Would affect union organizing rights
• Millions of Workers: Millions currently classified as ICs would become employees
• Joint Employer: Broader definition of joint employer
• Franchise Impact: Easier to hold franchisors liable
• Indirect Control: Even indirect or reserve control could trigger liability
• Supervisor Definition: Narrower definition of supervisor
• Electronic Systems: Right to use employer email for organizing

VII. Licensure Compacts for Telehealth

A. Interstate Medical Licensure Compact (IMLC)

• Expedited Pathway: Faster pathway for qualified physicians
• Multiple State Licenses: Still hold individual state licenses
• Faster Application: Much faster application process
• Cross-State Practice: Practice across participating states

B. Nurse Licensure Compact (NLC)

• Multistate License: One multistate license for eligible RNs and LPNs
• Physical and Telehealth: Practice physically or via telehealth
• All Compact States: Practice in all compact member states
• More Integrated: More integrated than IMLC

C. Other Professional Compacts

• PSYPACT: Psychologists
• PT Compact: Physical therapists
• ASLPIC: Audiologists and speech language pathologists
• OT Compact: Occupational therapists
• Increasing Importance: Becoming increasingly important for telehealth

D. Limitations of Compacts

• License Only: Only solve professional license issues
• Labor Law Unchanged: Don't change which state's labor laws apply
• Employment Relationship: Still determined by residency, base of operations, work location
• Wage and Hour: Don't solve wage and hour law problems

VIII. Cost of Non-Compliance

A. Class Action Environment

• Massive Scale: Over 9,700 class actions filed nationally in 2023
• FLSA Actions: Over 2,600 FLSA collective actions
• California Leadership: California leads nation in state-specific wage and hour class actions
• PAGA Driver: Primary driver is PAGA (Private Attorneys General Act)

B. PAGA Mechanism

• Individual Employee: One employee steps into shoes of state attorney general
• All Employees: Sue for all current and former aggrieved employees
• Civil Penalties: Recover civil penalties for every labor code violation
• Statute of Limitations: Within applicable statute of limitations
• 75% State: State gets 75% of penalties recovered
• 25% Employees: Employees get 25% of penalties
• Attorney Incentive: Heavily incentivizes plaintiffs attorneys
• Technical Violations: Leverage minor violations into massive actions

C. PAGA Growth Statistics

• 2013: About 1,600 PAGA notices filed
• 2023: Nearly 7,820 PAGA notices filed
• Exponential Growth: Nearly 5x growth in decade
• Effective Strategy: Shows effectiveness of technical violation strategy
• Huge Potential: Huge potential penalty claims from minor violations

D. Settlement and Verdict Examples

• Seattle Verdict: $98.3 million for time clock rounding and meal break issues
• Top 10 Settlements: Over $742 million total in 2023
• Range: $185 million (baseball players) to $23.5 million (pet care workers)
• Delta Airlines: $15.9 million for California wage statement violations
• Banner Bank: $15 million for FLSA overtime claims
• Amazon: $5.5 million for mandatory COVID-19 screening time
• Troster Impact: Amazon case shows impact of rejecting de minimis rule

E. Recent Legal Updates

• Horta Decision (March 2024): Confirmed mandatory exit procedures are compensable
• Naranjo v. Spectrum (May 2024): Good faith dispute defense for wage statement penalties
• Good Faith Defense: Can avoid penalties if genuine good faith belief about correctness
• Legal Uncertainty: Legitimate legal uncertainty about bonus inclusion
• Narrow Defense: Doesn't excuse underlying wage error
• Penalty Shield: May shield from additional penalties for inaccurate pay stub

F. Political Changes

• November 2024: California voters decide on PAGA repeal
• FPEAA: California Fair Pay and Employer Accountability Act
• Fundamental Shift: Would drastically alter enforcement landscape
• Monumental Change: Could change risks and realities of wage and hour litigation

Key Concepts and Definitions

Alternative Work Schedule (AWS)

Flexible scheduling arrangement that modifies standard 8-hour daily overtime rules, such as 4/10 or 9/80 schedules, with complex procedural requirements.

ABC Test

California's strict three-prong test for independent contractor classification requiring the worker to be free from control, perform work outside usual course of business, and be engaged in independently established trade.

PAGA (Private Attorneys General Act)

California law allowing individual employees to sue employers for labor code violations on behalf of all affected employees, with 75% of penalties going to state and 25% to employees.

Regular Rate of Pay

Weighted average rate calculated for each work week including all forms of compensation, used as basis for overtime and premium pay calculations.

De Minimis Rule

Federal rule allowing employers to ignore insignificant amounts of time, rejected by California for regularly occurring work.

Reporting Time Pay

Penalty pay for employees who show up for scheduled work but don't receive scheduled hours, designed to encourage reliable scheduling.

Compensable Time

Time that must be paid, including mandatory security checks, exit procedures, and travel time on employer premises.

Important Examples and Case Studies

2025 Salary Threshold Calculation

• Minimum Wage: $16.50 per hour
• Annual Calculation: $16.50 × 2,080 hours = $34,320
• Double Requirement: $34,320 × 2 = $68,640
• Monthly Minimum: $68,640 ÷ 12 = $5,720
• Compliance Trip Wire: Even $1 less makes employee non-exempt

Executive Exemption Example

• Primarily Engaged: Must spend 51%+ time on management duties
• Supervision: Direct 2+ full-time employees or equivalent
• Particular Weight: Recommendations must be influential in personnel decisions
• Regular Part: Making recommendations must be regular part of job
• Usually Followed: Suggestions must usually be followed

Administrative Exemption Example

• Office Work: Mainly office or non-manual work
• Management Policy: Directly related to management policies
• Business Operations: Supporting overall company operations
• Examples: Tax, finance, HR, legal, advertising, marketing
• Production Exclusion: Cannot be related to production or core sales

Computer Software Exemption Example

• 2025 Minimums: $56.97/hour, $9,646.96/month, $118,657.43/year
• Specific Duties: Systems analysis, software design, testing, documentation
• Hard Floor: Not discretionary, not tied to performance
• Budgeting Risk: Statutory increases may exceed company raise pools
• Automatic Non-Exempt: Fail to meet exact minimum = automatically non-exempt

AWS Implementation Example

• Written Proposal: Detailed written proposal required
• Translation: Must translate if 5%+ speak non-English
• 2/3 Vote: Supermajority secret ballot required
• Neutrality: Employer cannot campaign for or against
• Electronic Voting: Must prove same security as paper ballot
• Invalidation Risk: Any procedural flaw can invalidate entire AWS

Regular Rate Calculation Example

• Base Wage: $20 per hour
• Non-Discretionary Bonus: $500 production bonus
• Hours Worked: 40 regular + 5 overtime = 45 total
• Regular Rate: ($20 × 40 + $500) ÷ 45 = $28.89
• Overtime Pay: 5 hours × $28.89 × 1.5 = $216.68
• Error Impact: Using $20 instead of $28.89 = underpayment

Troster v. Starbucks Example

• Time: 4-10 minutes after clocking out daily
• Duration: 17 months, 13 hours total
• Value: $102.67 total
• Court Ruling: Must pay for required regular work
• Implication: Any mandatory regular task must be tracked
• PAGA Multiplication: $102 × thousands of employees × years

ABC Test Examples

• Bakery Plumber: Fixing leak = outside usual course of business
• Bakery Baker: Baking bread = inside usual course of business
• Tech Company: Software developer for software company likely fails
• Telehealth: Nurse practitioner for telehealth company likely fails
• Independent Business: Must have own business, multiple clients

PAGA Growth Example

• 2013: 1,600 PAGA notices
• 2023: 7,820 PAGA notices
• Growth: Nearly 5x increase in decade
• Strategy: Technical violations leveraged into massive actions
• Penalties: 75% to state, 25% to employees

Settlement Examples

• Seattle Verdict: $98.3 million for time clock rounding
• Top 10 Total: $742 million in 2023
• Delta Airlines: $15.9 million for wage statement violations
• Amazon: $5.5 million for COVID-19 screening time
• Banner Bank: $15 million for FLSA overtime claims

Key Takeaways

Salary Threshold Impact

• $5,720 Monthly: New minimum for 2025, up from previous threshold
• Compliance Trip Wire: Even $1 less makes employee non-exempt
• Middle Management: Many mid-level managers may lose exemption
• Tech Industry: Computer software exemption has even higher minimums
• Budgeting Challenge: Statutory increases may exceed company raise pools

Exemption Complexity

• Three-Legged Stool: Salary level, salary basis, duties test all required
• California Priority: California's higher threshold governs
• Dual Compliance: Must qualify under both federal and state law
• Duties Matter: Paying threshold isn't enough, duties must qualify
• Higher Standards: California requires 51% management time vs. other states' 40%

Alternative Work Schedule Risks

• Procedural Minefield: Incredibly complex implementation requirements
• Translation Requirements: Must translate if 5%+ speak non-English
• 2/3 Supermajority: Not simple majority, supermajority required
• Neutrality Requirement: Employer cannot campaign
• Invalidation Risk: Any procedural flaw can invalidate entire AWS
• Retroactive Liability: Years of daily overtime potentially due

Timekeeping Precision

• De Minimis Rejection: California rejects federal rule for regular work
• Every Minute Counts: Any mandatory regular task must be tracked
• Technology Available: Modern systems can track accurately
• PAGA Multiplication: Small amounts × employees × years = massive liability
• Regular Rate Complexity: Any bonus error affects all overtime calculations

Jurisdictional Expansion

• Remote Work Impact: California law follows California residents
• Employer Location: California-based employer increases California law application
• Aggressive Application: Extremely aggressive about applying California laws
• Multi-State Complexity: Massive strategic headache for distributed workforce
• ABC Test Impact: Strictest independent contractor test in country

PAGA Explosion

• Exponential Growth: Nearly 5x growth in PAGA notices from 2013 to 2023
• Technical Violations: Minor violations leveraged into massive actions
• Penalty Structure: 75% to state, 25% to employees
• Attorney Incentive: Heavily incentivizes plaintiffs attorneys
• Massive Settlements: Top 10 settlements totaled $742 million in 2023

Compliance as Business Shield

• Not Bureaucratic: Compliance is fundamental business shield
• High Stakes: Small mistakes can lead to massive lawsuits
• Technology Required: Need systems to capture every required minute
• Proactive Approach: Don't wait for claim to find out system isn't adequate
• Knowledge Application: Knowledge only valuable when applied

Critical Success Factors

For Salary Threshold Compliance

1. Know the Numbers: Track $5,720 monthly minimum for 2025
2. Tech Industry: Monitor higher minimums for computer software exemption
3. Annual Updates: Stay current with annual statutory increases
4. Budget Planning: Plan for statutory increases exceeding company raise pools
5. Audit Regularly: Regularly audit exempt classifications

For Exemption Management

1. Three-Legged Stool: Ensure all three requirements met
2. Duties Analysis: Regularly analyze actual duties vs. job descriptions
3. Time Tracking: Track time spent on exempt vs. non-exempt duties
4. Documentation: Document basis for exemption decisions
5. Regular Reviews: Conduct regular exemption reviews

For Alternative Work Schedules

1. Procedural Compliance: Follow all procedural requirements meticulously
2. Translation: Ensure accurate translation if required
3. Neutrality: Maintain complete neutrality during voting process
4. Documentation: Document entire process thoroughly
5. Legal Review: Have legal counsel review before implementation

For Timekeeping Systems

1. Capture Everything: Systems must capture every required minute
2. Regular Tasks: Any mandatory regular task must be tracked
3. Technology Investment: Invest in adequate timekeeping technology
4. Regular Rate Accuracy: Ensure accurate regular rate calculations
5. Audit Trail: Maintain comprehensive audit trail

For Remote Work Compliance

1. Jurisdictional Analysis: Analyze which state's laws apply
2. California Risk: Understand California law application risks
3. Policy Development: Develop policies for multi-state compliance
4. Regular Updates: Stay current with jurisdictional developments
5. Legal Consultation: Consult legal counsel for complex situations

For Independent Contractor Classification

1. ABC Test Mastery: Understand all three prongs of ABC test
2. Regular Audits: Regularly audit independent contractor classifications
3. Documentation: Document basis for independent contractor status
4. Exemption Analysis: Analyze if statutory exemptions apply
5. Legal Review: Have legal counsel review classifications

For PAGA Risk Management

1. Technical Compliance: Ensure technical compliance with all requirements
2. Regular Audits: Conduct regular compliance audits
3. Documentation: Maintain comprehensive documentation
4. Legal Updates: Stay current with legal developments
5. Proactive Approach: Address issues before they become claims

For Overall Compliance

1. System Investment: Invest in adequate systems and technology
2. Regular Training: Provide regular training on requirements
3. Legal Consultation: Maintain relationships with legal counsel
4. Proactive Monitoring: Monitor compliance continuously
5. Knowledge Application: Apply knowledge to prevent violations