A threshold analysis in a vast body of wage and hour law is whether an employee is correctly classified as exempt or non-exempt. Because the law imposes strict requirements for governing overtime premium, meal and rest breaks, and time-keeping of non-exempt employees, the misclassification of non-exempt employees could give rise to a variety of wage and hour claims, such as:

• Overtime wage claims
• Minimum wage claims
• Missed meal breaks
• Missed rest breaks
• Failure to provide itemized wage statements with accurate time records
• Resulting waiting time penalty

In California, vacation pay accrues as it is earned, and cannot be forfeited, even upon termination of employment. However, an employer can place a reasonable cap on vacation benefits that prevents an employee from earning vacation over a certain amount of hours. Further, California and certain cities, such as San Francisco, also have specific requirements regarding sick leave accrual. You should consult an attorney regarding the accrual requirement.