What is the minimum salary for exempt employees in California?

In California, exempt employees must earn a salary that is at least twice the state minimum wage for full-time employees. For 2025, with a minimum wage of $16/hr, the minimum annual salary for exemption is at least $66,560. This number increases as the state minimum wage rises.

Can I be exempt if I don't manage anyone?

Yes, under the Administrative or Professional exemptions. However, the Duties Test is very strict; you must perform work of substantial importance to the business operations and exercise frequent discretion and independent judgment.

Are computer professionals exempt in California?

Computer professionals have their own specific exemption with a much higher salary threshold. As of 2024/2025, the hourly rate for computer professional exemption is often above $55/hr, significantly higher than standard professional exemptions.

Does California allow 'Comp Time' instead of overtime?

In most private-sector scenarios, 'Comp Time' (giving time off later instead of paying overtime) is illegal in California. Overtime must be paid in cash in the pay period it was earned.

What happens if my boss calls me 'exempt' but I'm not?

You are entitled to back-pay for all unpaid overtime for up to 3 years (sometimes 4 under certain claims), plus interest and waiting time penalties. Your employer may also be liable for meal and rest break violations.

Do I lose exempt status if I perform some manual work?

Only if that manual work exceeds 50% of your total work time in a week. Unlike federal law, which uses a 'primary duty' test, California uses a strict quantitative test (the 50% rule).

Are outside sales representatives exempt?

Yes, outside salespersons who spend more than 50% of their time away from the employer's place of business selling products or services are generally exempt from overtime and meal break laws.

Can an agreement with my employer make me exempt?

No. You cannot 'waive' your right to overtime. Even if you signed a contract saying you are exempt or that you won't claim overtime, that contract is void if it violates California Labor Code.

Am I Exempt from Overtime in California? The Ultimate Guide

Section 1: The Foundations

The default status for every worker in California is Non-Exempt. This means that unless an employer can explicitly prove that an employee meets all requirements of a specific exemption, that employee is entitled to overtime pay (1.5x) for hours over 8 in a day and 40 in a week, as well as double-time (2.0x) for hours over 12 in a day.

The Three Pillars of California Exemption

To be considered exempt, an employee must generally meet both the **Salary Basis Test** and the **Duties Test**. In California, the "Duties Test" is quantitative, requiring that more than 50% of the employee's time be spent performing exempt tasks.

1. Executive Exemption: Generally for managers who supervise two or more employees, have the authority to hire/fire, and exercise "discretion and independent judgment."
2. Administrative Exemption: For office or non-manual work directly related to management policies or general business operations. This is the most frequently misapplied category.
3. Professional Exemption: Specifically for licensed professionals (lawyers, doctors, accountants) or recognized "learned" or "artistic" professions.

Current Salary Threshold (2025/2026): Under California law, exempt employees must earn a fixed monthly salary of at least twice the state minimum wage for full-time employment. As of recent updates, this threshold is significantly higher than federal rates, often leading to "incidental misclassification" when companies use out-of-state payroll standards.

Why This Problem Requires Attention

Miscategorization is more than a clerical error; it is often a form of wage theft. If you are working 50 hours a week on a "salary" but do not legally qualify for an exemption, you may be owed thousands of dollars in unpaid overtime, interest, and liquidated damages. Furthermore, exempt status impacts your right to mandatory meal and rest breaks—another area where California law provides rigid protections that differ from federal law.

Available Tools & Solutions

California Overtime Law Checker

Use our state-specific tool to see if your salary and role meet the current California thresholds for exempt status.

Run State-Specific Check

Wage Theft Analysis

If you think you've been misclassified, calculate potential back-pay and penalties owed under CA Labor Code.

Analyze Potential Back-pay

How to Evaluate Your Situation

Reviewing your job description isn't enough. California courts look at what you actually do every day. If your title is "Manager" but you spend 60% of your time working the cash register or performing manual labor, you are likely non-exempt despite your title.

Action Item: Keep a "Shadow Log" of your daily tasks for two weeks. If the majority of your time is spent on repetitive, non-discretionary tasks, consult your HR department or a legal professional regarding your classification.

Critical Mistakes to Avoid

Mistake 1: The "Title" Trap. Believing that having a "Manager" or "Director" title automatically makes you exempt. It does not.

Mistake 2: The Salary Fallacy. Thinking that being paid "on salary" equals being exempt. You can be a "salaried non-exempt" employee, meaning you get a flat rate but are still owed overtime if you exceed 40 hours.

Mistake 3: Federal vs State Confusion. Relying on Federal (FLSA) rules which are less strict. California's stricter standards always take precedence for workers in the state.

Professional Guidance & FAQs

What is the minimum salary for exempt employees in California?: In California, exempt employees must earn a salary that is at least twice the state minimum wage for full-time employees. For 2025, with a minimum wage of $16/hr, the minimum annual salary for exemption is at least $66,560. This number increases as the state minimum wage rises.
Can I be exempt if I don't manage anyone?: Yes, under the Administrative or Professional exemptions. However, the Duties Test is very strict; you must perform work of substantial importance to the business operations and exercise frequent discretion and independent judgment.
Are computer professionals exempt in California?: Computer professionals have their own specific exemption with a much higher salary threshold. As of 2024/2025, the hourly rate for computer professional exemption is often above $55/hr, significantly higher than standard professional exemptions.
Does California allow 'Comp Time' instead of overtime?: In most private-sector scenarios, 'Comp Time' (giving time off later instead of paying overtime) is illegal in California. Overtime must be paid in cash in the pay period it was earned.
What happens if my boss calls me 'exempt' but I'm not?: You are entitled to back-pay for all unpaid overtime for up to 3 years (sometimes 4 under certain claims), plus interest and waiting time penalties. Your employer may also be liable for meal and rest break violations.
Do I lose exempt status if I perform some manual work?: Only if that manual work exceeds 50% of your total work time in a week. Unlike federal law, which uses a 'primary duty' test, California uses a strict quantitative test (the 50% rule).
Are outside sales representatives exempt?: Yes, outside salespersons who spend more than 50% of their time away from the employer's place of business selling products or services are generally exempt from overtime and meal break laws.
Can an agreement with my employer make me exempt?: No. You cannot 'waive' your right to overtime. Even if you signed a contract saying you are exempt or that you won't claim overtime, that contract is void if it violates California Labor Code.

Target Audience & Intended Use

This guide is essential for California-based employees in white-collar roles, HR professionals managing CA teams, and business owners operating within the state. It is not intended for independent contractors, who follow different classification rules (the "ABC Test").