California Employment Law
California Employment Law Questions Answered by Legal Experts
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Unfortunately, doing things like this could result in someone making an unpaid wage claim later on against you.
Currently, you are hiring these people as non-exempt employees. When you hire someone as an employee, you must pay them based on all time they actually work. So, just because you pay them by event does not mean the law sees it that way. They could state that they should have been paid hourly. As to what would have been owed, you can see what would have been owed here:
The other option is that you could try to hire them as an independent contractor, however, you also need to be careful of this, depending on the circumstances. To actually be an independent contractor, you would need to follow certain criteria. This can be found here:
Otherwise, you would be paying them as part time employees and their compensation must be done hourly
We do fully regard them as employees. But they are compensated per event.
I see this commonly done in various areas. Does it violate any labor laws?
I understand what you are saying, but the only way to pay someone by event is to make them an exempt employee, or to make them an independent contractor. Otherwise, employees cannot contract away their right to be compensated hourly for the work they perform. It is done regularly in many different types of jobs, but it is not lawful, and all of those companies are likely opening themselves up to labor claims if a worker ever decided to bring such a claim against them.
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