California Wage and Hour Law Compliance for Independent/Private Schools

Recent Developments in California Wage and Hour Laws
California’s wage and hour laws continue to evolve, creating compliance challenges for independent and private schools. In particular, class action and PAGA wage and hour claims continue to result in significant liability for school employers. This legal alert highlights key areas requiring attention to avoid potential liability.

Documentation Requirements for Exempt Employees
Independent and private schools verify that exempt employees are appropriately classified. Exempt status requires meeting both the minimum salary and duties tests under California law. Courts continue to scrutinize the classification practices of educational institutions, particularly for staff with mixed administrative and teaching responsibilities. Special rules exist for classifying teachers in independent and private schools as exempt.

Time Tracking Requirements for Nonexempt Staff

Schools must implement robust time-tracking systems for all non-exempt employees, including administrative staff, teacher aides, and facilities personnel. Electronic documentation of all minutes and hours worked, as well as all meal and rest breaks, is increasingly important as regulatory enforcement intensifies. Recent enforcement actions have focused on unpaid work during lunch periods and before and after scheduled shifts.

Independent Contractor Classifications

The “ABC test” remains the standard for determining independent contractor status in California. Schools engaging consultants, coaches, or specialized instructors must ensure that these relationships truly satisfy the requirements of independent contractors. Misclassification penalties continue to increase, with schools facing particular scrutiny.

Electronic Communications and Work Hours

Recent court decisions have examined the impact of digital communications on compensable time. Schools should establish clear policies regarding after-hours communications with nonexempt staff. The expectation of email/text monitoring or response can constitute compensable work time requiring payment.

Required Meal and Rest Periods

California’s strict meal and rest period requirements apply to school operations. Nonexempt employees are entitled to receive uninterrupted 30-minute meal periods and appropriate rest breaks. Schools must maintain documentation of compliance in this regard or face paying premiums for missed or late meal and rest periods. Time cards should not be rounded and must be accurate to the minute.

Wage Statements

California laws require that all employees receive accurate wage statements each payroll period, detailing various elements such as rates of pay, total hours worked, overtime (if applicable), meal and rest break penalties, and other relevant information.  Failure to include any required element in a wage statement can result in penalties that accrue for each employee, each payroll period.  Schools should ensure that all employees receive legally compliant wage statements each payroll period.

Recommended Actions

Independent and private schools should:

1. Conduct a comprehensive audit of employee classifications;
2. Review and update time-keeping protocols;
3. Establish clear policies regarding electronic communications outside work hours;
4. Implement systematic documentation of meal and rest periods;
5. Implement appropriate employee wage statements; and
6. Update employee handbooks to reflect current legal requirements.

For specific questions regarding your school’s wage and hour compliance, please contact