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 2018, the employee working for a company with 26 or more employees must earn $880 per week or $45,760 annually. An employee working for a company with less than 26 employees must earn $840 per week or $43,680 annually.
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 or technical lines requiring special training, experience, or knowledge; ...