California Exempt Employees laws & compensation compliance analysis

California Exempt Employees: What you need to know

The overtime, alternative workweek, and makeup time provisions of California law do not apply to persons employed in administrative, executive, or professional capacities.
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To qualify for the administrative exemption, an employee must pass the salary and duties tests.
To be exempt, an administrative employee must earn a monthly salary equivalent to at least two times the state minimum wage for full-time employment. “Full-time employment” is defined as 40 hours per week. In order to qualify as an exempt administrative employee in California in 2017, the employee working for a company with 26 or more employees must earn $840 per week, $3,640 per month, or $43,680 annually. Employees working for employers with 25 or fewer employees must meet a monthly salary of $3,466.67 for exemption, which is the equivalent of $41,600 per year.
An employee must pass a duties test to qualify for the administrative exemption in California:
1. He or she performs either:
(a) Office or nonmanual work directly related to management policies or general business operations of his or her employer or his or her employer's customers; or
(b) Functions in the administration of a school system, in an educational establishment or institution, or of a department or subdivision thereof, in work directly related to the academic instruction or training.
2. He or she must customarily and regularly exercise discretion and independent judgment.
3. An exempt administrative employee must either:
(a) Regularly and directly assist a proprietor or an employee employed in a bona fide executive or administrative capacity;
(b) Perform under only general supervision work along specialized ...

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California Exempt Employees Resources

Type Title
Checklists Trainees Checklist
Forms Nonexempt to Exempt Letter
Policies Employee Workweek
White Papers Use Caution When Reclassifying Employees
See all Exempt Employees Resources