Our company’s business hours are from 8 a.m. to 5 p.m., Monday through Friday. The payroll manager, who is classified as an exempt employee, often arrives at work around 10 a.m. and regularly leaves the office before we close. When this has been discussed with her, she tells us she is exempt and can set her own hours. Is that true?

No, your payroll manager’s status as an exempt employee does not entitle her to set her own hours and to declare that she may come and go as she pleases. As her employer, you may establish a work schedule for her and require her to abide by it.

Exempt/Nonexempt Employees

Both California and federal law require that employees be paid overtime when they work hours beyond their regular schedules. California law also requires employers to provide meal and rest breaks to nonexempt employees.

To be considered exempt from the overtime pay requirements, employees must meet specific salary and duties tests. The most common “white-collar exemptions” generally refer to an executive, administrative or professional employee. Certain salespeople and computer professionals also may be classified as exempt in California.

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