Employers awaiting a major wage and hours court decision.(BUSINESS LAW)

Kiplinger California Letter, The, December, 2007

Employers are awaiting a major wage and hours court decision that could revoke the exempt status of thousands of employees. The California Supreme Court has agreed to consider an appeal by insurers, who argue that claims adjusters are exempt from overtime because they do administrative tasks. A lower court ruled that adjusters do not make policy or work at the "general operations" level, two functions that are required in order to be declared exempt.

The outcome may affect hundreds of firms that also exempt staff who are not making company policy or supervising other workers.