Exemptions: Overtime & minimum wage - California

Summary of differences between federal and state regulations

Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional, and outside sales employees. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees.

To qualify for exemption under federal law, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $684 per week. The salary minimum does not apply to outside sales employees, teachers, and employees practicing law or medicine. Exempt computer employees may be paid at least $684 on a salary basis or on an hourly basis at a rate not less than $27.63 an hour under federal law.

Under California law, the minimum salary for those in executive, administrative, and professional positions is two times the state minimum wage for full-time employment (defined as 40 hours per week). This applies even if the exempt employee works fewer than 40 hours per week.

The minimum required salary or hourly rates for computer software employees are revised in January each year.

Outside sales people may also be exempt from the California minimum wage provisions.

California requires that exempt employees must spent more than half their working time engaged in exempt duties, which is more stringent that the federal primary duty requirement. Also, the state does not recognize the “concurrent duties” concept from the federal regulations.

California does not have provisions (and does not recognize) salary deductions for violations of major safety rules, nor deductions for disciplinary suspensions of less than one workweek.

Also, California does not recognize the “highly compensated employee” exemption for those earning more than $107,432 per year.

California law Section 515.8 provides that overtime compensation requirements do not apply to an individual employed as a teacher, as defined, at a private elementary or secondary academic institution teaching students in kindergarten or grades 1 to 12, inclusive. This requirement does not affect the exemptions from overtime compensation for professional, executive, and administrative employees. The 515.8 exemption does not apply to any tutor, teaching assistant, instructional aide, student teacher, day care provider, vocational instructor, or other similar employee.

State

Contact

California Department of Industrial Relations Division of Labor Standards Enforcement

Regulations

Title 8, California Code of Regulations
Chapter 5. Industrial Welfare Commission
Group 1. General Minimum Wage Order
Article 1. Minimum Wage Order
§11000. Order Regulating the Minimum Wage.

Labor Code Section 500-558.1

Federal

Contact

The Department of Labor is the federal agency that monitors hours worked.

Regulations

Regulations for exempt employees can be found in CFR 29 Part 541, Defining And Delimiting The Exemptions For Executive, Administrative, Professional, Computer And Outside Sales Employees