Can salaried workers earn overtime in California?

Can salaried workers earn overtime in California?

Employees who are ineligible for overtime in California are called “exempt” employees, or sometimes “salaried employees.” Salary is paid in a fixed amount for the week, every other week, or twice a month, regardless of the actual hours worked. Employees covered under overtime laws are referred to as “non-exempt” employees. Their pay varies depending on the number of hours, and they also get overtime.

When it comes to determining an employee’s exempt or non-exempt status, there are several considerations. One of these factors is whether an employee is paid a salary. An employee who is paid hourly is automatically considered a non-exempt employee. However, a salaried employee may actually be non-exempt if they are paid less than two times the state minimum wage for full-time employment.

A salaried employee may also be non-exempt if their job duties fall outside the California requirements for exemption—even if the employee’s salary meets the minimum amount. Most exempt employees all fall within three categories; employees whose job descriptions fall outside these categories are exempt:

• Executive employees
• Administrative employees
• Professional employees

Below is a little more about each of these classifications:

Executive Employees: Workers who spend more than half their time performing any of the following may be considered an exempt executive employee:

• Managing a business, or a major department of a business;
• Directing the work of at least two other employees;
• Participating in hiring and firing decisions; and
• Using their independent discretion in deciding how to do their job.

Administrative Employees: Workers who perform office work or other non-manual work directly related to the management of a business may be exempt, provided they routinely use independent judgment when performing their job. This category is more of a grey area than the executive and professional exemption.

Professional Employees: Workers may be a professional employee if they are among the small group of “recognized professionals” or work in a “learned or artistic profession.” Examples of recognized professionals include:

• Accountants
• Architects
• Doctors
• Engineers
• Lawyers
• Optometrists
• Teachers

If you suspect you were misclassified as exempt you may be owed up to four years of back overtime, missed meal and rest breaks, and substantial penalties under California law. A skilled employment attorney can help you recover the maximum damages allowed under the law.

Other Unpaid Wage & Overtime FAQs:

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• Are computer programmers and tech workers exempt from overtime?
• Are There Specific Documents or Records Required to Prove Unpaid Commissions?
• Can an employer disclose my immigration status if I file a claim for unpaid wages?
• Can I get fired for claiming overtime pay?
• Can I Take Legal Action Against My Employer For Unpaid Commissions?
• Can my employer change my commission plan or withhold commissions?
• Can my employer fire me for filing a wage claim?
• Can My Employer Withhold Commissions If I Resign or I’m Terminated?
• Can salaried workers earn overtime in California?
• Do I still get overtime if I am a commissioned salesperson?
• Does my employer have to pay me for off-the-clock work?
• Does my employer have to reimburse me for work expenses?
• How can a lawyer help with my claim for unpaid wages?
• How can I protect myself from wage theft?
• How can I tell if I am an independent contractor?
• How do I file a claim for unpaid wages? 
• How do I know if I am entitled to overtime pay?
• How do I know if my employer needs to pay me overtime?
• How is overtime pay calculated in California?
• How Long Does My Employer Have to Pay Me My Commissions After They’re Due?
• How much time do I have to file a wage claim in California?
• How much time do I have to file an overtime claim?
• If I receive a salary, am I exempt from overtime?
• If my employment is terminated, is my employer still required to pay me my commissions?
• Is my employer allowed to deduct anything from my paycheck?
• Is my employer allowed to deduct tips from my paycheck?
• Is my employer allowed to withhold my final wages after firing me?
• Is my employer required to pay for my meal break and rest breaks?
• My employer is forcing me to work through meal breaks. What should I do?
• What Are My Rights Regarding My Final Paycheck Once I Quit My Job?
• What are some examples of wage theft?
• What are the main differences between an independent contractor and an employee?
• What Are Unpaid Commissions in California?
• What is an exempt and non-exempt employee?
• What Is Not Considered A Commission?
• What is the minimum wage in California?
• What should I do if I suspect my employer is withholding wages?
• What should I do if my boss asks me to work off the clock?
• What types of damages can I get in a wage claim against my employer?