What Is the Minimum Salary Requirements for an Exempt Employee in California

As you can see, exempt employees in California benefit from state labor laws that require a higher minimum wage than would be required by federal law. In some cases, the difference is quite significant. This means that the minimum wage for exempt employees in 2022 will be one or the other: The discussion above focused on the three most frequently exempted employees (professionals, executives and administrators). However, there are a handful of other professions that are exempt from some or all of California`s labor laws. The minimum wage may differ, inter alia, from the general exemption criterion mentioned above. Some of the most common exceptions are discussed below. Note: There is also a professional exemption under state law. For the occupational exemption, employees must pass certain mandatory exams, but there is no minimum wage requirement under state law. Federal law sets a minimum wage of $684 per week for the occupational exemption. Employers who wish to classify employees as exempt from overtime must ensure that employees meet the federal and state exemption criteria. It is common for employees to be released, as this greatly facilitates administration and may be more conducive to managing personnel costs. However, this is not at all in line with California`s requirements, which are very prescriptive and must be followed in all cases.

It doesn`t matter what the employer or employee wants. It`s strict and you just have to follow California`s requirements to determine the exemption or non-exemption status. If an employee is incorrectly classified as “exempt”, the employer may owe the employee compensation for unpaid overtime. The employer may also owe the employee an hourly wage for each meal break denied to the employee.30 What is the minimum wage for exempt workers in California? » What is the minimum wage for exempt employees in California? Under the state`s exemption for highly technical computer scientists, the employee can be paid by wage (at least $865.38 per week in 2022) or per hour (according to a state proposal, the minimum hourly rate in 2022 would be $28.92). Workers are generally only exempted if they receive a wage of at least twice the state-applicable minimum wage for full-time employees. Note: There are also exceptions for field workers and IT professionals. There is no minimum wage requirement for the exemption of sales representatives. For the computer assistant exemption, the employee can be paid by salary (as long as it is at least $684 per week) or by the hour (provided it is at least $27.63 per hour). An employee must pass a task test to qualify for an administrative exemption in California: As of January 1, 2020, to qualify as an exempt employee in the United States, an employee must receive a minimum wage of $684 per week, or $35,568 per year.

Exempt workers in California, meanwhile, must receive pay at least twice the state`s minimum wage. California`s minimum wage for 2022 is $14.00 per hour for employers with 25 or fewer employees and $15.00 per hour for employers with 26 or more employees. Employees who are considered “field workers” are usually considered exempt employees.38 A sales representative is defined as someone: The executive exemption usually applies to senior managers. However, managers must still meet the exemption requirements. If this is not the case, they must be classified as non-exempt, unless they can satisfy one of the other exceptions. For these purposes, a wage is a fixed minimum wage payment made regardless of the hours worked or the quantity or quality of work performed.10 Workers who receive an hourly wage cannot be classified as exempt workers – even if their work consists primarily of work obligations that would otherwise be considered exempt. What is the difference between the municipal, state and federal minimum wage? With effect from 1. In January 2018, the monthly minimum wage for shepherds was $1,955.74 per month for employers with 26 or more employees and $1,866.88 per month for employers with 25 or fewer employees. On January 1, 2019, the minimum monthly rate increased to $2,133.52 per month for employers with 26 or more employees and to $1,955.74 per month for employers with 25 or fewer employees. The monthly minimum wage for shepherds is specifically defined in the Wages Ordinance IWC 14-2001.

Wages paid to shepherds cannot be compensated by the employer`s food or accommodation. Instead, there are provisions in IWC Regulation 14-2007, Articles 10 (F), (G) and (H) that apply to shepherds with regard to the monthly food and accommodation benefits that must be provided by the employer. The following charts show the changes in local minimum wage rates in California, which were observed on June 1. January 2021 and July 1, 2021. The calculation of an exempt employee`s minimum wage then depends on the current minimum wage. The state`s minimum wage is expected to rise throughout California over the next few years. It`s also different for employers, large and small: it`s important to note that California`s minimum wage will increase on January 1 of each year until 2023. This means that the minimum wage for exempt employees in California will also increase each year.

* The UC Berkeley Labor Center maintains a detailed national list of local minimum wage regulations. The Department of Industrial Relations does not monitor or verify this list, but includes it here as a reference for the public: UC Berkeley Labor Center Inventory of U.S. City and County Minimum Wage Ordinances Some employees are exempt from the Minimum Wage Act, such as field sales representatives, individuals who are the employer`s parents, spouse, or child, and interns, who are regularly outsourced under the Department of State`s learning standards. Minimum Wage Ordinance (MW-2019) There is an exception for learners, regardless of age, who can receive at least 85% of the nearest nickel-rounded minimum wage during their first 160 hours of work in occupations where they have no similar or related experience. As a general rule, employers prefer to classify employees as exempt. To do this, however, several conditions must first be met. More importantly for this article, the employee must generally receive a salary equal to at least twice the state minimum wage for full-time employment.1 Employers in Washington can pay IT professionals by the hour (if at least $50.72 per hour in 2022) or on a salary basis (if at least $1014.30 per week in 2022) to be eligible for additional leave. The Fair Compensation Act provides similar protection for employees of a different race or ethnic origin.24 In most cases, employees must receive a salary to qualify as an exempt employee. Employees who receive hourly wages are generally considered non-exempt.9 (Although there are a number of job-specific exceptions that apply to certain types of hourly workers, such as .B. authorized employees, sales representatives and IT specialists.) Unionized employees are sometimes exempt from California overtime laws.44 To be exempted, workers must be employed under a collective agreement that specifically defines workers` wages, hours, and working conditions.45 $58,240 per year (or $1,120 per week) for employers with 26 or more employees. Conley v.

Pacific Gas & Electric Co. (2005) 131 Cal.App.4th 260, 267 [“It is not disputed that the combined effect of these provisions of federal law is to prevent employers from arranging an employee`s wages for an absence of less than one day (partial absence). If this is the case, the employees concerned do not meet the basic salary criterion and shall not be exempted for the purposes of overtime pay.”] ↥ To determine whether the California worker is primarily on leave, the California Labor Commissioner reviews the work he or she does during the work week. For more information and advice on employee counts to determine if an employer qualifies as an employer with 25 or fewer employees, see New Phase of Minimum Wage – Requirements 2017-2023, SB 3 Frequently Asked Questions. In these areas, the minimum wage is now $455 per week, with the exception of American Samoa, where it is $380 per week. [2] Salary Threshold – The wage threshold in California is double the state minimum wage. For 2021, this is $14 per hour X 2080 hours/year X 2 = $58,240. This means that a California employee who earns less than $58,240 a year cannot be considered an exempt employee. .