Who Is Exempt From Overtime In California?

California law requires employers to pay most employees overtime wages equal to at least time and a half the amount of their regular rate of pay, unless they meet certain specifications and qualify as “exempt” from overtime.

Who is Exempt from Overtime in California?

The largest group of people who are exempt from receiving overtime in California are executives, administrative and other professionals who earn at least twice the minimum wage in California. People earning at least $45,760 may be considered exempt, because this is twice the minimum wage.

Employees who are earning commissions may also be considered exempt from overtime pay.

Some of the ways in which an employee is either classified as exempt or non-exempt require taking a closer look at the work that they perform on a daily basis.

For example, according to the Department of Industrial Relations, an employee is considered an executive if they are primarily engaged in executive, administrative, or professional duties.

In most cases, “primarily” executive means that an employee spends at least 50 percent of their time on executive or other types of tasks. This exception is colloquially known as the “white-collar exemption.” In other cases, an employee can be classified as exempt if they regularly use their independent judgement and discretion in the course of their work.

Do Employers Always Comply with this Law?

Employees are only exempt if they meet the legal definition of “exempt” as it is defined by the California Labor Code. Employers cannot classify an employee as exempt if their role does not meet the qualifications for being classified as “exempt.”

However, some employers may try to avoid paying employees overtime in California by classifying them as exempt while requiring them to do the work of non-exempt employees. Some ways in which employers may try to get around California labor law to classify employees as exempt when they should not be is by:

• having an employee sign a contract stating that they are exempt
• paying a salary instead of an hourly wage

California law attempts to ensure that all people who should receive overtime pay for their work are able to receive it. Capital Public Radio reports that in 2019, California employers have begun to be required to pay overtime to farm workers who work nine and a half hours in a day or 55 hours in a week. This is an increase in possible overtime pay from the former rule that required farm workers to work 10 hours in a day or 60 hours in a week before qualifying for overtime. 

What are the Benefits of being Exempt or Not Exempt?

As many exempt employees earn more than those who are non-exempt, exempt positions can be sought after as a sign of professional advancement.

However, there are some California wage and hours laws that do not apply to exempt employees, so they are not legally guaranteed the same protections on their time that non-exempt employees are offered. First of all, because exempt employees do not qualify for overtime pay in California, they can be required to work more than 40 hours in a given week without receiving more money.

In addition to not qualifying for overtime pay in California, employers are not required to give lunch and rest breaks to employees who are exempt. These employees may have to work through lunch if necessary, or work longer without a break.

However, as these employees do exercise judgment and discretion in the normal course of their work, they are often in the position to determine how much time they need to spend to complete their work, unlike non-exempt employees.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years in California, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now