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BEING A SALARIED EMPLOYEE DOES NOT DEFINE WHETHER YOU'RE ENTITLED TO OVERTIME PAY

Did you know that being a salaried employee does not automatically exempt you from overtime compensation? In order to qualify as an exempt employee (i.e. exempt from overtime, meal and rest breaks, etc.), also known as the "white collar" exemption, a variety of factors must be satisfied. One of those factors requires that the employee earn a guaranteed/fixed salary of at least twice the state minimum wage for full-time employment.

As of January 1, 2019, the minimum wage in California increased from $10.50 per hour to $11.00 per hour for employers with 25 or fewer employees and from $11.00 to $12.00 per hour for employers with 26 or more employees. Therefore, in order to qualify for a white collar exemption as of January 1, 2019, an employee must receive an annual salary of at least $45,760 for employers with 25 or fewer employees, and $49,920 for employers with 26 or more employers.

If you are paid on a salary basis and making less than the minimum salary requirements, contact our office for a free consultation regarding your rights in the workplace.