Salary Level Test “Full-time employment” is defined as 40 hours per week. In order to qualify as an exempt employee in California in 2023, the employee must earn at least $1,240 per week, or $64,480 annually, exclusive of board, lodging, and other facilities.
California wage and hour laws affect salaried and non-salaried workers. Non-exempt salaried employees are protected by California minimum wage laws.
However, it's crucial to ensure accurate record-keeping and payroll management. In California, every minute an employee works must be compensated ing to state labor regulations. In California, salaried employees are not required by law to clock in and out, especially if they are exempt from overtime regulations.
Companies often classify salespeople and commissioned employees as exempt. But these professionals must meet two key requirements: An employee earning commission must earn over one and a half times the California minimum wage. An employee's commissions must make up more than half of their overall compensation.
An employee must earn no less than two times the state's minimum wage for full-time work to meet this initial requirement of the exemption test. As of January 1, 2025, employees in California must earn an annual salary of no less than $68,640 to meet this threshold requirement.
In California, salaried employees are not required by law to clock in and out, especially if they are exempt from overtime regulations. The decision primarily lies with the employer. In California, nonexempt employees must accurately record their hours worked.
If you need help with this, give us a call at (213) 992-3299. We can ensure your complaints are filed with the correct DLSE office. After your complaint is filed, you will receive a notice of conference from the labor board, typically in 3 to 12 months.