Many employees across California misclassify their employees as salary “exempt” employees to avoid having to pay overtime wages, when in fact the employees should be classified as hourly “non-exempt” employees who receive overtime wages.
Employers must satisfy both (1) the salary requirement, and (2) the duties requirement.
The employee must be paid a fixed salary that is at least twice the California minimum wage for full-time employment. As of 2023, this equates to a salary of $64,480.00 to meet this requirement. California’s minimum wage is set to increase every year on January 1st. This means that the minimum salary for exempt employees in California will also be increasing annually.
A “fixed salary” is a fixed minimum payment of wages that is paid regardless of the hours work or the amount of quality of work performed.
If an employer pays a lower salary or does not pay a “fixed salary” to an employee, then the employee is misclassified and is owed unpaid overtime wages for all overtime hours worked during the relevant statutory period.
The rules for determining the status of exempt and nonexempt employees are complex. Generally speaking, to be exempt, the employee must exercise independent judgment when performing job duties and be paid at least two times the minimum wage for full-time employment. There are other tests as well. Only through careful investigation and analysis by an experienced exemption lawyer can your status be determined. If you receive a salary or have the title “manager,” you are not necessarily an exempt employee. In reality, you may actually be a nonexempt employee and entitled to overtime pay.
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We will aggressively pursue all wages and penalties that you are owed from employers who do not follow the law. If your employer is forcing you to work without being paid at least the minimum wage, Call Sani Law or contact Sani Law today.