Exempt vs. Non-Exempt Employees: California Overtime Exemptions

In California, employers must to provide compensation to workers who use their personal automobiles for business-related activities. There are 4 ways to determine the refund:

• lump-sum payments
• reimbursement based on actual mileage
• actual expenditure reimbursement
• combination of fixed and variable rate reimbursement

No matter the method, employees are eligible to full payment.

What California Law Governs Mileage Reimbursement?

According to California employment law, all employers inside the state must reimburse employees for any out-of-pocket business expenses. This comprises the costs related to utilizing the employee's personal vehicle for work-related reasons in addition to other related expenses. Employers must reimburse employees for all essential costs or losses incurred in the following:

• direct result of the person performing their tasks
• obeying instructions from the employer by the employee

Unless the employee knew they were unlawful while performing them, the employee is eligible to reimbursement even though the employer's instructions were against the law. These compensations cover the expenses incurred when an employee uses their own car for work. However, the cost of gas for the car is not always the only part of these costs. They also consist of:

• wear and tear causing a car to depreciate
• costs of upkeep and repairs
• registration fees for vehicles
• auto insurance

Reimbursements are not need to be made in addition to an employee's pay or other compensation under California Labor Code 2802(a)LAB.  However, there must be a way to divide up and identify this increased pay as reimbursement.

What are the Various Methods for Determining Reimbursement?

According to California law, there are 4 possible ways to determine how much an employee must pay for a car used for work-related purposes:

• a regular lump sum payment or "gas stipend" that covers all expenses associated with operating the vehicle
• compensation based on the distance traveled
• a payment based on the worker's real out-of-pocket costs
• a hybrid computation that employs variable rates for some costs, like fuel, and fixed rates for others, like insurance.

When utilizing any of these strategies, the employer is only responsible for covering their actual, necessary costs. It's possible that unnecessary car costs won't be paid for. Which reimbursement policy will be applied is a decision that the employer and employee must make together. Therefore, the parties must concur on the mileage reimbursement rate if one is to be used. Usually, the job contract or employee handbook will outline this. Any agreement, however, that denies an employee their entire entitlement to reimbursement for business-related automobile expenses is void. In fact, employees must have the chance to contest the appropriateness of the reimbursement under such an agreement.

Gas Stipends or Lump-Sum Payments

In California, employers are able to pay employees a single fixed sum to cover vehicle-related expenses. Likewise known as:

• "gas stipend"
• "allowance for cars"
• "daily fee"

This is a regular payment, often sent each month, of a specific amount that covers the employee's expenses. Employees who use their own automobiles to travel the same routes every day or week typically adopt the lump-sum technique. When the amount being put in use is constant, lump-sum payments could be desirable since they require fewer paperwork from both parties. However, a flat sum payment might not be sufficient due to shifting gas prices. Undercompensated workers in these circumstances have the right to contest the amount and demand full compensation.

What if My Company isn't Covering All of My Personal Automobile Costs?

Employers who underpay their workers for using their automobiles for personal purposes have the right to contest the amount of the reimbursement. Therefore, workers can demonstrate that the payment has been insufficient by providing documentation of their real costs. Workers may bring a wage and hour lawsuit if the employer does not make good on the discrepancy. Lastly, employees may bring a class-action lawsuit if their employer consistently refuses or fails to pay for their travel expenses.

Glendale Personal Injury Lawyer

If you need legal assistance with mileage reimbursement contact our office today for a consultation. Please feel free to give our office a call at 310.943.1171.

Paid leave is a critical benefit for California employees, ensuring time to care for personal health or that of a loved one without the burden of lost wages. While California's paid sick leave laws aim to support workers, they can be confusing, especially for part-time or temporary employees. Employers must understand their legal responsibilities, and employees need to know their rights to avoid potential disputes.

At KAASS LAW, we help workers navigate California labor laws and hold employers accountable when they violate those rights. In this blog, we’ll explain who is eligible for paid leave in California, how much time workers can accrue, how payment is calculated, and what happens when sick leave runs out.

Who Is Eligible for Paid Leave in California?

Under the Healthy Workplaces, Healthy Families Act of 2014, most employees in California who work for the same employer for 30 or more days within a year from their start date are entitled to paid sick leave. This includes:

• Full-time employees
• Part-time employees
• Temporary or seasonal workers

Exceptions to this rule apply to certain groups, such as:

• Employees covered by a valid collective bargaining agreement
• Federal and local government employees
• In-home supportive services providers
• Airline cabin crew and flight deck employees who receive paid leave under federal law

If you're unsure whether you qualify for paid leave, it's best to consult with an employment attorney to review your situation.

How Is Paid Sick Leave Accrued?

California law requires employers to provide at least one hour of sick leave for every 30 hours worked. Employers may cap annual paid leave at 24 hours or three days (whichever is more), and limit total accrual to 48 hours or six days.

However, companies can choose to offer more generous policies. They may also frontload sick leave at the start of each year instead of accruing it based on hours worked.

For example:

• An employee working 30 hours per week would accrue 1 hour of sick leave weekly and receive 52 hours in one year.
• If capped at 48 hours, any excess may not continue to accumulate unless the employer offers additional benefits.

Paid Leave for Part-Time Employees

Part-time workers are entitled to the same accrual rate as full-time workers—one hour of paid leave for every 30 hours worked. Employers cannot deny part-time workers their right to use earned sick leave.

During the COVID-19 pandemic, part-time employees with regular schedules were eligible for supplemental paid leave equal to two weeks' worth of hours. Those with variable schedules qualified for seven times the average daily hours worked in the prior six months.

How Much Will I Earn While on Paid Leave?

When you take paid sick leave in California, your employer must pay you at your regular hourly rate. This applies to both exempt and non-exempt employees.

However, for COVID-19 supplemental paid sick leave, the rules vary slightly. Non-exempt employees are entitled to the highest of the following:

• Their regular rate of pay
• Their average pay in the previous 90 days
• California’s minimum wage or the local minimum wage, whichever is higher

Exempt employees receive their normal salary, as determined by the same method used to calculate other paid leaves (e.g., vacation time).

What If I Use All My Paid  Sick Leave?

Employers are not obligated to pay employees who require additional time off after using all available sick leave. However, workers may still qualify for job-protected unpaid leave under California or federal law, such as:

• Family and Medical Leave Act (FMLA)
• California Family Rights Act (CFRA)

These laws protect eligible employees who need to care for a family member, recover from a serious illness, or welcome a new child. When a worker returns from leave, the employer must reinstate them to the same or a similar position. Retaliation, demotion, or termination due to time off under these laws is illegal.

What Happens If My Employer Denies My Sick Leave?

Employers in California may not deny, interfere with, or retaliate against employees for using their lawful paid sick leave. Common violations include:

• Refusing to let employees use accrued time
• Failing to provide notice of available leave
• Terminating or disciplining workers for using leave

If your employer violates your rights, you may file a complaint with the California Labor Commissioner’s Office or pursue legal action. Learn more about wrongful termination in California, one of the most common consequences employees face when they try to exercise their labor rights.

Do Employers Need to Track Paid Leave?

Yes. California law requires employers to maintain accurate records of sick leave accrual and usage for at least three years. They must also provide a written notice of available sick leave on each pay stub or attached document.

If you believe your employer isn’t properly tracking or displaying your paid leave, this may be a sign of noncompliance. For more details about employment law protections, check our blog on wage and hour violations.

Get Legal Help

You have legal options if you believe your employer has denied you leave or retaliated against you for using it. At KAASS Law, we help employees protect their rights and secure the compensation they deserve. Let us help you understand your sick leave entitlements and pursue a claim if your rights were violated.

📞 Call us today at 310.943.1171 or visit the California Department of Industrial Relations to learn more about your rights under state law.

Workplace discrimination is prohibited in California. Employers who discriminate against a person because of a medical condition are breaking the law. They must make reasonable accommodations for employees with a medical condition unless doing so would cause excessive hardship. People subjected to illegal medical discrimination can sue their employer for monetary damages. The following commonly asked issues about lawsuits for discrimination against California workers based on medical conditions are addressed:

Is it Legal for a California Business to Refuse to Hire Someone with a Specific Medical Condition?

In most situations, it is illegal for an employer in California to reject to hire an applicant because of his or her medical condition or perceived medical condition. Discrimination in the workplace because of a medical condition is illegal under California state and federal law. Employers may have preconceived notions about a person's ability based on their worries or assumptions about their medical condition. According to the California Fair Employment and Housing Act (FEHA), it is illegal for an employer to discriminate against an employee because of a medical condition. The law requires that employers evaluate job applicants regardless of their actual or perceived medical issues. Employers must provide reasonable accommodations to an employee or applicant unless doing so would cost the employer undue hardship. Discrimination based on a person's medical condition is illegal in any area of work or hiring, including:

• Refusing to make a fair effort to accommodate you
• Refusing to engage in an interactive process with employees who require a reasonable accommodation in a timely and good-faith manner
• Refusing to employ
• Choosing not to participate in a training program
• Demotion
• Pay reductions
• Refuse a promotion.
• Refusal to reinstatement
• Benefits are denied.
• Forcing an employee to resign is a bad idea.
• Harassment
• Assign various responsibilities.

The Categories of Medical Illnesses That Are Exempt From Discrimination

A "medical condition" is defined as any of the following under the FEHA:

1. Any health problem caused by or linked to a cancer diagnosis or a cancer record or history.
2. Characteristics of the human genome "Genetic traits" means one of the following for this section:
3. • A scientifically or medically identifiable gene or chromosome, or combination of genes or chromosomes, that is known to cause diseases or disorders in a person or in his or her offspring or that is statistically associated with an increased risk of causing disease or disorders but is not currently associated with any symptoms of any disease or disorder.
   • Inherited characteristics that may be inherited from an individual or a family member, that are known to be a cause of disease or disorder in a person or his or her offspring, or that have been determined to be associated with a statistically increased risk of developing a disease or disorder, but are not currently linked to any disease or disorder symptoms.

Genes or chromosomes that suggest a higher chance of diseases like cancer, heart disease, or Lou Gehrig's disease are examples of genetic disorders. An employer may discriminate against a genetically predisposed employee because the employer believes the individual may require medical leave or time off. Medical illnesses and mental or physical disability may coexist. Any mental or psychological problem or condition that impairs a major life activity is considered a "mental disability." Limitations are set without consideration for mediation, assistive technology, or reasonable adjustments.

Chronic diseases or medical disorders that cause mental impairments include:

• Bipolar disorder
• Clinical depression
• Schizophrenia
• OCD
• Anxiety
• Dementia

Disfigurements or diseases that impair the body and limit significant living activities are called "physical disabilities." This includes the following:

• Physiological disease
• Disorder
• Condition
• Cosmetic disfigurement
• Anatomical loss

Physical disabilities encompass both long-term and short-term conditions, such as:

• Impaired eyesight
• Impaired hearing
• Impaired speech
• Chronic diseases
• Hepatitis
• HIV/AIDs
• Diabetes
• Loss of a limb
• Cancer
• Pregnancy and childbirth

Contact Our Office for a Consultation Now

If you or someone you know has been diagnosed with a medical condition and is facing employment difficulties, please feel free to call our office at 310.943.1171. Do not hesitate to contact KAASS LAW if you have questions about California disability discrimination laws or discuss your case confidentially with one of our experienced California employment law attorneys.