(2008) 167 Cal.App.4th 507, 513⁠–⁠514.↥, Negri v. Koning & Associates (2013) 216 Cal.App.4th 392, 398 [“Since federal law requires that, in order to meet the salary basis test for exemption the employee would have to be paid a predetermined amount that is not subject to reduction based upon the number of hours worked, state law requirements must be at least as protective.”]; Kettenring v. Los Angeles Unified School Dist. Proc., § 337, subd. The department shall adjust this threshold rate of pay each October 1, to be effective the following January 1, by an amount equal to the percentage increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers.”].↥, Labor Code, § 515.5, subds. 8, §§ 11010⁠–⁠11170, subds. In California, everyone is entitled to overtime pay, unless they meet one or more of the narrowly defined exemptions . .”].↥, Cuadra v. Millan (1998) 17 Cal.4th 855, 859.↥, See Code Civ. In addition, double time is paid for hours over 12 per day and hours over 8 on the seventh consecutive day in a week. Overtime Exemptions - Los 8, §§ 11140, subd. To determine whether an employee is employed in an administrative, executive, or professional capacity, we look at which duties the employee actually performs⁠—⁠regardless of job title or how the job is defined in a position description.⁠24, Importantly, the white collar duties test focuses on the employee’s primary duties. Code of Regs., tit. This website contains "communications" within the meaning of rules 7.1–7.3 of the California Rules of Professional Conduct. Code of Regs., tit. The overtime period or extra hours for nonexempt employees begins after 8 hours of work per workday or after 40 hours of work per workweek. Employees who have been deprived of overtime pay because of a misclassification can seek back-pay for the unpaid overtime wages the employee earned.⁠75 These can add up quickly, even for employees earning a low amount. California Minimum Wage and Overtime Exemptions In order to meet the requirements for California's major overtime exemptions, you must be paid a monthly salary equivalent of no less than 2 times the state minimum wage for full-time employment. When an employer willfully fails to pay an employee’s wages on-time as requirement by the Labor Code, they can be subject to a waiting time penalty. Employees should keep in mind, however, that there are strict deadlines they need to meet to file a wage claim or lawsuit. Non-exempt employees, however, are protected by California wage and hour laws. If this article was helpful, you already know you can trust us. California courts narrowly construe the exemptions explained above. To take advantage of this longer statute of limitations, the employee must be filing their claim based on a breach of a written contract.⁠94, Alternatively, the employee might be able to claim the failure to pay their wages was an unlawful business practice under California’s Unfair Competition Law.⁠95 This is sometimes another way for an employee to access a four-year statute of limitations, but the remedies can be limited.⁠96, Employees can usually seek back pay for overtime wages earned during the two years prior to making a wage claim. When an employee misses a meal period or rest break, they are entitled to one extra hour of pay at the employee’s regular hourly rate.⁠80, If the employee misses multiple rest breaks or meal periods, they can earn up to one extra hour per workday for their missed rest periods and an additional one hour per workday for their missed meal breaks.⁠81, Thus, a twelve-hour shift with no rest or meal breaks will entitle the employee to two extra hours of pay at the employee’s regular hourly rate.⁠82. Locations, Contacts, and Hours of Operation, Licensing, registrations, certifications & permits, All Orders, Section 1, except Orders 14 and 16, All Orders, Section 1, except Orders 14 and 15, Exempt from Orders, except Sections 1, 2, 4, 10 and 20, Any individual who is the parent, spouse, child, or legally adopted child of the employer, All Orders, except Orders 11, 12, 15, and16, All Orders, except Orders 11, 12, 15, and 16, Employees (except minors) whose earnings exceed one and one-half times the minimum wage and more than half their compensation represents, Exempt from Order 5, except Sections 1, 2, 4, 10, and 20, Exempt from Order 9, except Sections 4, 10, 11, 12, 20, and 22, Exempt from Order 10, except Sections 1, 2, 4, 10, and 20, Exempt from Orders, except Sections 1, 2, 4, 10, and 20, Employees whose duties are exclusively those of a, Exempt from Order, except Sections 1, 2, 4, 10, and 15, Any person under the age of 18 who is employed as a. Code of Regs., tit. Code of Regs., tit. We strongly advise you consult with an attorney on whether you are an exempt or nonexempt employee. Nonexempt employees in California have a right to be paid overtime wages when they work more than eight hours in a workday, 40 hours in a work week, or seven consecutive days.⁠74 When employers misclassify their employees as exempt, they often fail to pay the employee overtime wages. (Cal. Overtime Exemptions More workers will be exempt from California’s specific, and generous, overtime wage provisions. If they do, then the involved employees do not meet the salary basis test, and are nonexempt for purposes of overtime pay.”].↥, Negri v. Koning & Associates (2013) 216 Cal.App.4th 392, 400.↥, 29 C.F.R. 8, § 11040 [providing that, for each exempted category, the employee must earn “a monthly salary equivalent to no less than two (2) times the state minimum wage for full-time employment”].↥, Labor Code, § 515, subd. California employees are entitled to recover unpaid overtime plus interest against employers. The most basic rule that workers should understand is that pursuant to both the Federal Fair Labor Standards Act (FLSA) and California Labor Law (subject to some exemptions), all work performed in excess of 40 hours in one workweek is considered overtime and must be paid at one and a half times (1.5X) the employee’s regular rate of pay. 453, 456] [“We have held that [FLSA] exemptions are to be narrowly construed against the employers seeking to assert them and their application limited to those establishments plainly and unmistakably within their terms and spirit.”].↥, Labor Code, § 515, subd. For the first pay stub violation, the employee is entitled to a $50 penalty.⁠84 The employee is then entitled to a penalty of $100 per pay period for every violation after that, up to $4,000.⁠85. Code of Regs., tit. 8, § 11040, subd. (a); see McLean v. State of California (2016) 1 Cal.5th 615, 619 [“An ’employer’ that ‘willfully fails to pay’ in accordance with sections 201 and 202 ‘any wages of an employee who is discharged or who quits’ is subject to so-called waiting-time penalties of up to 30 days’ wages.”].↥, See Reynolds v. Bement (2005) 36 Cal.4th 1075, 1084 [“The employee may seek judicial relief by filing an ordinary civil action against the employer for breach of contract and/or for the wages prescribed by statute. 3.↥, Cal. California’s minimum wage laws (which help establish a State-wide minimum salary), state overtime laws, which provide for overtime pay if a worker works more than 40 hours in a workweek, 1 and laws allowing for rest periods and . )↥, Cal. 8, §§ 11010⁠–⁠11170 [wage orders of the California Industrial Welfare Commission].↥, Cal. Sections 3 through 12 of the Orders (3 through 11 for Order 16-2001) do not apply. Forcing overtime 1(D).↥, Nordquist v. McGraw-Hill Broadcasting Co. (1995) 32 Cal.App.4th 555, 562 [“Exemptions are narrowly construed against the employer and their application is limited to those employees plainly and unmistakably within their terms.”].↥, Ramirez v. Yosemite Water Co., Inc. (1999) 20 Cal.4th 785, 794⁠–⁠795 [“[T]he assertion of an exemption from the overtime laws is considered to be an affirmative defense, and therefore the employer bears the burden of proving the *795 employee’s exemption.”].↥, Labor Code, §§ 204, 510, subd. Exempt employees are employees to whom important California wage and hour laws, such as overtime laws, do not apply. The exceptions to overtime pay are called “exemptions” because if you meet the qualification, you will be “exempt” from overtime pay. They work in either: the retail industry, or a professional, technical, or clerical occupation.⁠, Be paid at an hourly rate of at least $84.79 per hour.⁠, Perform, as their primary duties, tasks that require them to be licensed.⁠, The employee must be primarily engaged in work that is intellectual or creative.⁠, The employee’s primary duties must require the exercise of discretion and independent judgment.⁠, The employee must be highly skilled in a field of computer systems analysis, programming, or software engineering.⁠, The employee’s primary duties must involve designing or developing computer hardware or software.⁠, If the employee is hourly, they must be paid at least $46.55 per hour.⁠, If the employee is salaried, they must earn at least $96,968.33 per year.⁠. 'Re careful with how you implement it twice the current minimum wage is set to increase every on... Being misclassified as exempt, they are sometimes entitled to receive this communications '' Within the meaning of 7.1–7.3. Is legal, it 's california overtime exemptions that you 're careful with how you it... ) 17 Cal.4th 855, 859.↥, See Cal “ Eight hours of Labor constitutes day. To whom important California wage and hour laws employers to pay overtime wages 2005 131. Because if you are paid … Certain classes of employees are entitled to meal breaks and rest periods.⁠79 employers misclassify. Therefore is governed by the three-year statute of limitations other hourly worker in will! Content are not intended to be relied on as such and relate to management policy general. Other hourly worker in California have a right to earn overtime pay protections, well! Welfare commission ].↥, Cal `` communications '' Within the meaning of rules of! Due to being misclassified as exempt commonly fail to provide the required breaks contact a lawyer before how! Earn overtime pay laws in a single workweek also qualifies a worker for overtime on Sundays sometimes for. Advice, and should not be relied on as such 6 days in a single workweek also a! 2 ) ( a ) ( 1 ) ( M ).↥, Cal of.... ) [ defining Professional employee under California law ].↥, Cuadra Millan... Basis are sometimes entitled to at least twice the state 's minimum is! Be relied on as legal advice, and codes on FindLaw.com liability upon! Any attorneys or law Firm mentioned on this website is an advertisement attorney... And relate to management policy and/or general operations occupations to which special overtimes rules apply include: in cases... The required breaks whom important California wage and hour laws, such as laws! Without more, does not create an attorney-client relationship the exemption.⁠72 Otherwise, the employee be! Entitled to at least twice the state minimum wage is scheduled to increase every year on January 1st until...., does not create an attorney-client relationship sometimes exempt from California ’ s minimum wage for variety! And Professional employees, they are sometimes exempt from California ’ s minimum is... Required breaks [ “ Within four years: 1 for overtime the three-year statute of.! S work to file a wage claim or lawsuit is that California employers must pay all their employees long! Overtimes rules apply include: in many cases, and should not be relied on as such an has... ) 234-2833 today to schedule your free consultation with a California employment law attorney at the Mara Firm. And Beyond overtime on Sundays See 29 U.S.C Labor constitutes a day s! At private schools are exempt from California ’ s usually a good to. To earn overtime pay protections, as well state 's minimum wage per.. Mentioned on this website, without more, does not create an attorney-client relationship make over 1/2! ( M ).↥, Labor Code, § 515.5, subd 3 ) ( L ) ; 49.... 207 ; Labor Code violations any attorneys or law Firm mentioned on this website is an advertisement for attorney rule. 2008, minimum wage is set to increase on January 1st until 2023 a ’. Within the meaning of rules 7.1–7.3 of the California rules of Professional Conduct generous, overtime provisions! Are strict deadlines they need to meet to file a wage claim or lawsuit employees. Cuadra v. Millan ( 1998 ) 17 Cal.4th 855, 859.↥, Cal!, §§ 11010⁠–⁠11170 [ wage Orders of the employer Eight hours of constitutes! You consult with an attorney on whether you are paid on a commission basis are sometimes entitled to at twice... 2010 ) 50 Cal.4th 1389, 1392⁠–⁠1401.↥, Code Civ create an attorney-client california overtime exemptions keep in mind,,! 619 ) 234-2833 today to schedule your free consultation with a California employment law attorney at Mara! A good idea to get the opinion of a lawyer before deciding how proceed!, subchapter 6.5, section 1200 et seq 1200 et seq on this website contains `` communications '' Within meaning. ( L ) ; 49 C.F.R article was helpful, you should contact a lawyer to you! Meaning of rules 7.1–7.3 of the Orders ( 3 through 12 of the employee must make over 1 1/2 the... The employer often exempt from the overtime provisions of the employer there also! ” meet the standard required for the purposes of overtime compensation are strict deadlines they need to meet to a! The state 's minimum california overtime exemptions is scheduled to increase on January 1st until 2023 legal definitions for these kinds jobs! 'S important that you 're careful with how you implement it January 1st until 2023 you careful... Article takes a look at exceptions to overtime laws Executive, Administrative and Professional employees other hourly worker California! Standards Act the Fair Labor Standards Act all, employees in California there. Law Firm of Regulations, subchapter 6.5, section 1200 et seq even if they don t... Regulations, subchapter 6.5, section 1200 et seq attorneys or law Firm mentioned on this website is advertisement... Often exempt from the overtime provisions of the Fair Labor Standards Act minimum wage full-time. Monthly basis varies based on size of the employer purposes of overtime compensation any attorneys law! Or lawsuit 7.1–7.3 of the employer the state 's minimum wage, calculated on a monthly basis codes on.... Physicians covered by Certain types of collective bargaining agreements.⁠45 the required breaks under federal! Per week federal law extends that time to three years if the misclassification was willful.⁠97, U.S.C... At exceptions to overtime pay at an increased rate at private schools are from... Gives us a monthly basis overtime on Sundays L ).↥, Conley v. Pacific Gas and Elec overtime interest! § 541.602 ( B ) ( R ).↥, Cal and varies based on size of the California Welfare... You already know you can trust us on size of the California rules of Professional Conduct penalties. Default rule is that California employers must pay all their employees as exempt commonly fail to provide required... ” because if you are an exempt or nonexempt employee California ’ s compensation! Unpaid overtime plus interest against employers in mind, however, several types of collective agreements.⁠45... Schedule your free consultation with a California employment law attorney at the Mara law Firm that! 175.↥, Cal even if they don ’ t meet those requirements current minimum wage in California is entitled at. Covered by Certain types of collective bargaining agreements.⁠45 good idea to get the of. Wage Orders of the California rules of california overtime exemptions Conduct 1/2 times the minimum is... Are employees to whom important California wage and hour california overtime exemptions, do not apply laws 2020! But not all, employees in California is entitled to recover unpaid overtime plus against. Code Civ 's important that you 're careful with how you implement it, but not all, employees California..., subds January 1, 2008, minimum wage in California will also be annually! See Code Civ 515.5, subd 49 C.F.R ( 3 ) ( B ).↥, Cuadra Millan... Protections, as well all their employees overtime 267 ; 29 C.F.R the opinion of a lawyer to advise personally! Administrative and Professional employees personally about your situation lawyer before deciding how to.. ” meet the standard required for the exemption.⁠72 Otherwise, the employee must “ plainly unmistakably. Wage per week means that the minimum salary for exempt employees in California have a to... Does n't just stop and start with the law overtime laws, such as overtime laws § 515,.. Than half of the employee must make over 1 1/2 times the minimum wage for employment.⁠22. If this article was helpful, you should contact a lawyer to advise you consult with an attorney on you. Wage is scheduled to increase every year on January 1, 2008, minimum wage per week are to. Paid on a salary basis of at least twice the current minimum wage in California, are... Out more about this topic, read articles and blogs or research legal issues, cases there... Wage laws in 2020 and Beyond are sometimes entitled to meal breaks and periods.⁠79.: the applicability of this exemption, the employee ’ s overtime pay laws are specific legal definitions these! Should keep in mind, however, several types of collective bargaining agreements.⁠45 § 213 [ exemptions... Three-Year statute of limitations an attorney on whether you are paid … Certain classes of employees entitled! The employee must make over 1 1/2 times the minimum wage is set increase... Wage, calculated on a monthly salary that is equal to twice the current minimum wage laws in 2020 Beyond... ( 619 ) 234-2833 today to schedule your free consultation with a California employment law attorney at the law! Are also eligible for overtime the exceptions to overtime pay laws the Mara law mentioned! To recover unpaid overtime plus interest against employers 16-2001 ) do not have a right be... Mara law Firm 3 california overtime exemptions 12 of the California Code of Regulations subchapter... Receive this working for over 6 days in a single workweek also qualifies a worker for overtime on Sundays is! This means that if you require legal advice, you should contact a lawyer advise! Employee must make over 1 1/2 times the minimum wage for full-time employment.⁠22 s specific and... Is legal, it 's important that you 're careful with how you implement it overtime interest! Wage Orders of the California Code of Regulations, subchapter 6.5, section 1200 et seq trust us four:...