Many people think that salaried employees do not qualify for overtime. In California, this is not always true. Whether overtime applies depends on several factors, including job duties and salary amount.
What defines an exempt employee
In California, exempt employees are not entitled to overtime pay. To qualify as exempt, an employee must perform specific job duties, often related to executive, administrative, or professional roles. They must also earn a monthly salary that is at least twice the state minimum wage for full-time employment. If either the duties or the salary threshold is not met, the employee may be considered non-exempt and eligible for overtime.
Common misunderstandings about salaried status
Some employers believe that paying a salary automatically exempts a worker from overtime. This is not correct. Salary alone does not determine exemption. The nature of the work and the amount earned both play major roles. Misclassification can lead to wage claims, penalties, and legal action. Employees and employers should review job descriptions and pay structures carefully.
When salaried workers must receive overtime
If a salaried worker does not meet California’s exemption requirements, overtime laws apply. Non-exempt salaried workers must be paid overtime for hours worked over eight in a day or forty in a week. They are also entitled to double time for hours worked over twelve in a day. Employers must calculate the overtime rate based on the worker’s salary converted into an hourly rate.
Protecting your rights and responsibilities
Understanding how overtime applies to salaried workers helps avoid costly mistakes. Both employees and employers benefit from knowing the rules. Checking the salary level and job duties ensures compliance with California law. Staying informed protects earnings, reduces disputes, and builds fair workplace practices.