California Employee Classification Policy

Purpose/Objective

For purposes of calculating wages and eligibility for company benefits, [Company Name] uses employee classifications. This policy is intended to clarify the company’s employee classifications so that employees understand their employment status and eligibility for benefits. Nothing in this policy is intended to, or does, alter the company’s at-will employment policy. Both the employee and the company have the right and ability to terminate the employment relationship at any time, and for any reason.

Eligibility

This policy applies to all employees. Employees with questions concerning their classifications or the benefits for which they qualify should contact [human resources/other job title] or the applicable benefits plan documents.

Procedures

Full-time employees

Full-time employees are those normally scheduled to work at least 30 hours per week, as determined by the company in its sole discretion.

Part-time employees

Part-time employees are those normally scheduled to work less than 30 hours per week, as determined by the company in its sole discretion.

Temporary employees

Temporary employees are those employed to work on special projects for short periods of time, or on a “fill-in” basis. These positions are not intended to be a part of the company’s continuing operations. The employment status of temporary employees will not be changed due to an extension of employment in excess of that originally planned. Unless otherwise required by applicable law, temporary employees are not eligible for company benefits.

Nonexempt employees

Nonexempt employees are those who are covered by the overtime provisions of the federal Fair Labor Standards Act or any applicable California state law.

Exempt employees

Exempt employees are those who are classified by the company as exempt from the overtime provisions of the federal Fair Labor Standards Act and any applicable California state law.