How do I determine if I am legally classified as an "exempt" salaried employee versus a "non-exempt" hourly employee in California?
To determine your legal classification, you must satisfy both a minimum salary test and a specific job duties test; a job title or being paid a salary is not enough. Here is how to determine your status under California law:
Step 1: Check Your Salary
Confirm your annual salary is at least two times the state minimum wage for a full-time employee. For 2024, this minimum salary is $66,560 per year ($5,546.67 per month). If you earn less than this, you are automatically classified as a non-exempt employee entitled to overtime, regardless of your job duties.
Step 2: Analyze Your Job Duties
Your primary job duties must fall into one of the main exempt categories: Executive, Administrative, or Professional. Executive duties involve managing the business and directing at least two employees. Administrative duties involve office work directly related to management policies or general business operations that require the regular use of discretion and independent judgment. Professional duties require a state license (like a lawyer or doctor) or involve work in a "learned or artistic" field.
Step 3: Evaluate How You Spend Your Time
Under California law, you must spend more than 50% of your work time performing these exempt job duties. Track your daily tasks for a typical week to see if your primary function is genuinely administrative, executive, or professional. The reality of your work matters more than your job description.
Step 4: Collect and Compare Documents
Gather your official job description, employment contract, and recent pay stubs. Compare what these documents say with the reality of the work you perform, as determined in Step 3. If your primary, day-to-day tasks do not align with the exempt duties test, you may be misclassified.
Important details and nuances:
Your employer cannot legally classify you as exempt simply by giving you a managerial title or paying you a salary. The duties test is strict. California's rules, including the "more than 50%" rule, are generally more protective of employees than federal law. Other, more specific exemptions exist for outside salespersons and certain computer professionals, which have their own unique tests.
Warnings and limitations:
Employee misclassification is a common and serious issue. If you are misclassified as exempt, you may be owed significant unpaid overtime wages, meal and rest break premiums, and other penalties. You can find more information on the California Labor Commissioner's Office website.
This is general information and does not constitute legal advice. For complex situations or to confirm your classification, consult with a qualified California employment attorney.
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Disclaimer:
This information is for general guidance only and should not be considered as legal advice. Please consult with a qualified attorney for specific legal matters.
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Updated: August 13, 2025
Employment Law
Worker rights, wages, and employment regulations
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