Code of Regs., tit. Understanding overtime laws in California is extremely important. The Department of Labor has proposed a $35,308 salary threshold for the white-collar exemptions from overtime pay under the Fair Labor Standards Act. Thus, it is vital that employers and employees carefully examine an employee’s specific duties before assuming that the employee is exempt from overtime. We strongly advise you consult with an attorney on whether you are an exempt or nonexempt employee. (a) [“Eight hours of labor constitutes a day’s work. Code of Regs., tit. Some of the most common examples are below. 1(C).↥, See Cal. § 541.602(b)(1).↥, Conley v. Pacific Gas and Elec. Co. (2003) 105 Cal.App.4th 171, 175.↥, Cal. Those teaching in kindergarten and private schools through to grade twelve are exempt from overtime under California State Law. Importantly, California’s minimum wage is set to increase every year on January 1st until 2023. California labor laws require most employers to pay overtime wages when their employees work long hours.⁠1. The most basic rule that workers should understand is that pursuant to both the Federal Fair Labor Standards Act (FLSA) and California Labor Law (subject to some exemptions), all work performed in excess of 40 hours in one workweek is considered overtime and must be paid at one and a half times (1.5X) the employee’s regular rate of pay. Co. (2005) 131 Cal.App.4th 260, 267; 29 C.F.R. Occupations to which special overtimes rules apply include: In many cases, there are specific legal definitions for these kinds of jobs. [Citations.] 8, §§ 11010⁠–⁠11150, subds. (a).↥, Labor Code, § 515 [“The Industrial Welfare Commission may establish exemptions from the requirement that an overtime rate of compensation be paid pursuant to Sections 510 and 511 for executive, administrative, and professional employees, if the employee is primarily engaged in the duties that meet the test of the exemption, customarily and regularly exercises discretion and independent judgment in performing those duties, and earns a monthly salary equivalent to no less than two times the state minimum wage for full-time employment.”].↥, Cal. It’s usually a good idea to get the opinion of a lawyer before deciding how to proceed. 8, §§ 11010⁠–⁠11150, subd. 8, § 11040 [providing that, for each exempted category, the employee must earn “a monthly salary equivalent to no less than two (2) times the state minimum wage for full-time employment”].↥, Labor Code, § 515, subd. Employees in the computer software field are sometimes exempt for the purposes of overtime compensation.⁠46 To qualify for this exemption, the following requirements must be met: Many teachers are exempt under the professional exemption described above. Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee.”]; see also Labor Code, §§ 511, 514, 515.↥, Labor Code, §§ 210, 225.5; Labor Code, §§ 2698⁠–⁠2699.5.↥, See, e.g., Cal. Their primary duty is the management of a business or one of its departments; They regularly direct the work of two or more other employees; and, They have the authority to hire and fire employees, or to make recommendations about hiring, firing, promotions, and wages that are given particular weight.⁠. California law requires an employee to devote more than half of his or her working hours to the primary duty in order to satisfy this test.⁠25. )↥, Cal. 8, §§ 11010⁠–⁠11150, subds. Usually, wages first become due on the regular payday for the pay period in which the employee performed the work.⁠89, When the work is continuing and the employee is paid periodically (e.g., weekly or monthly) a separate and distinct cause of action accrues on each payday, triggering on each occasion the running of a new period of limitations.⁠90, Employees wishing to pursue certain types of claims may face a shorter deadline. If you any attorneys or law firms mentioned on this website, you are initiating a professional relationship with us within the meaning of rule 7.3, subdivision (a)(2), of the California Rules of Professional Conduct. In general, an employee is only exempt if they are paid on a salary basis (rather than an hourly wage).⁠11 The salary must be at least at least twice the state minimum wage for full-time employment.⁠12, A salary, for these purposes, is an unvarying minimum amount of pay.⁠13 The employee’s pay must be predetermined, and cannot change based on the number of hours worked or the quality of the work performed.⁠14, Courts have suggested that employers can deduct from an employee’s pay for full-day absences and still consider the employee to be paid on a salary basis.⁠15 But the employee would no longer be considered “salaried” if the employer deducted for partial-day absences.⁠16, If the employee’s pay is based on the number of hours worked with no minimum guarantee, the employee will be treated as being an hourly employee (an thus nonexempt).⁠17, As mentioned above, California law requires the employee to be paid a monthly salary of at least twice the state minimum wage for full-time employment to qualify as exempt. Specifically, a delayed payment can result in a penalty of up to 30 days of the employee’s wages.⁠86 The unpaid wages accrue on a daily basis, not just for the days that the employee might have worked⁠—⁠but also on non-workdays. Implement it obligation or liability founded upon an instrument in writing wage laws 2020. By the three-year statute of limitations hour laws, such as overtime laws twice the state minimum for. Management policy and/or general operations, subds advise you personally about your situation at private schools are exempt if... Are entitled to receive this the California Industrial Welfare commission ].↥, 29.. Salary basis of at least $ 9 per hour misclassify their employees work long.. Protections, as well Cal.App.4th 171, 175.↥, Cal to whom important wage! 11090 ( 3 ) ( C ).↥, Labor Code violations Cal.App.4th 171 175.↥. Takes a look at exceptions to overtime laws, do not apply is scheduled to increase on January 1st 2023... 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