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Properly classifying employees as exempt or non-exempt is one of the most critical compliance responsibilities for California employers. Misclassification can result in unpaid overtime, penalties, audits, and costly lawsuits. In this video, KPHR explains: • What exempt and non-exempt employee status means • How overtime eligibility works under California law • The three legal tests for exempt classification • Common misclassification mistakes employers make • Best practices to reduce wage-and-hour risk This video is intended for educational purposes only and does not constitute legal advice. Employers should consult legal counsel or an HR compliance professional to evaluate classification decisions specific to their workforce. KPHR provides expert HR solutions for California businesses, including fractional HR services, employee handbooks, payroll support, and compliance training. 🔗 Visit KPHR.com to access more free HR compliance resources and learn how we help businesses stay protected. #CaliforniaLaborLaw #hrcompliance #EmployeeClassification #ExemptVsNonExempt #EmployerCompliance