confidential & free consultation
Most everyone understands that the law requires employers to pay employees a certain minimum hourly wage. As previously discussed in this blog, California mandates a higher minimum wage than federal law, and certain jurisdictions set even higher minimum wages than state law. However, these minimum wage requirements, along with other wage and hour laws, only apply to employees who are classified as “non-exempt.”
On the other hand, employers are not expected to pay “exempt” employees a certain amount for every hour worked. Exempt employees will receive a set salary – even if their hours vary or they work well over 40 hours a week. For this reason, many employers seek to classify employees as exempt to avoid compliance with certain wage requirements.
Employers cannot simply decide when an employee is exempt or non-exempt. Instead, there are two major requirements for an exempt employee under California law:
The minimum salary for exempt employees in California is not arbitrary. Instead, it is tied to the minimum wage laws in the state, which recently increased again. This means that the minimum salary for exempt employees also increased as of January 1, 2019.
The minimum wage in California increased to the following this year:
Because there are two different minimum wages, there will also be two different minimum exempt salaries depending on the size of the employer.
For employers with 25 or fewer employees, the minimum salary would be twice what someone earning the $11.00 minimum wage would earn for a full-time work week. The calculation goes as follows:
$11.00 per hour x 40 hours per week x 52 weeks per year x 2 = $45, 760 minimum exempt salary
For larger employers, the calculation is:
$12.00 per hour x 40 hours per week x 52 weeks per year x 2 = $49,920 minimum exempt salary
Once an employee earns the minimum salary, the following requirements must also be met regarding this salary:
Once an employee meets the salary requirements, the test then turns to the duties of the employee to determine whether an exempt status is appropriate and legal. If an employee is misclassified as exempt, the employer may owe them a significant amount in unpaid overtime wages.
At the Mara Law Firm, we represent employees in California in cases involving misclassification, unpaid overtime, and more. If you would like to discuss a possible overtime claim with an experienced California employment lawyer, please call (619) 234-2833 or contact us online today.
If you are in need of employment litigation attorney in California or have been injured overseas while under a military contract and are in need of a defense base act attorney. Please fill out the form below and contact us immediately for a FREE consultation.
all fields are required*