Workers are entitled to numerous rights and protections under California labor law, and can recover large penalties if employers violate those rights. Exempt salaried employees may not be eligible for overtime; however, employers have to pay salaried exempt employees at twice the minimum hourly wage based on a 40-hour workweek.1. With that said, there are complicated aspects in the California labor law for salaried employees that need full understanding for both employee and the employer’s rights to be preserved. Example: Toni’s call center job relocates from Riverside to Los Angeles on July 15, 2019. Nevertheless, employers often tell some employees that they are not eligible for overtime pay since they are being paid a salary instead of an hourly wage. A “business necessity” is “an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve.”22, Even if the employer demonstrates that a bona fide factor other than sex was used to differentiate compensation, the defense does not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without the wage inequality.23, The Fair Pay Act provides similar protections to employees of another race or ethnicity.24, Employers who violate the Equal Pay Act are liable to employees for unpaid wages and interest. . Fair Labor Standards Act (FLSA) Family/Medical Leave (FMLA) Health and Safety (OSHA) Labor Laws (NLRA) Leave Laws. This is because employees usually work more than 8 hours every day, and the California labor commission (CLC) may regard such a time record as no record at all. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a sex-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity.”). Under California meal break law (which is much more generous to employees than federal labor law), if you are a non-exempt worker, you are entitled to a 30-minute uninterrupted, duty-free meal break if you work more than 5 hours in a workday. 218 — Relation to other laws. Pursuant to State and Federal law, we must advise you that by entering your contact information, you are providing express written consent for United Employees Law Group to contact you at the email and number provided via telephone, mobile device or text SMS/MMS even if you are registered on a corporate, state, or federal Do Not Call list. If an employee works on a holiday, they are paid their usual rate of pay unless it is the employer’s policy to pay extra rates such as time-and-a-half. 2. Salary Basis Requirement To qualify for exemption, employees generally must be paid at not less than $684 * per week on a salary basis. If COVID-19 Supplemental Paid Sick Leave is denied, file a Wage claim or report a labor law violation. For employees working a full-time job at 40 hours per week, the minimum salary should be no less than $480.00 per week, or $24,960 per year. California law does not require that an employer provide its employees with paid holidays, that it close its business on any holiday, or that employees be given the day off for any particular holiday. An employer can reduce a non-exempt employee’s salary as long as the employee is compensated at no less than the California minimum wage. California labor laws state that workers cannot work more than 40 hours in a week or eight hours in a day without getting overtime pay. Under California employment law, salaried employees can be classified as exempt or non-exempt. The California labor commission does not require that an employer should pay exempt salary workers for resuming early, working late, working on weekends, or for working on their off day. Salaried non-exempt employees are also protected by California wage and hour laws–including overtime laws and laws requiring meal and rest breaks.4, Under the California Equal Pay Act, employers are prohibited from paying a lower salary to employees of the opposite sex for equal work. Please complete the form below and we will contact you momentarily. California employees may file a lawsuit against employers for violating California labor laws. An employee may recover reinstatement and reimbursement for lost wages and work caused by the acts of the employer, including interest and appropriate equitable relief.32. As an employee in Los Angeles, effective July 1, 2019, Toni’s salary should be no less than $570.00 (40 hours at $14.25/hour = $570.00). Employees who are paid an hourly wage are usually considered non-exempt.⁠9 (Although there are a number of job-specific exemptions that apply to certain types of hourly employees, like commissioned employees, outside salespersons, and computer professionals.) If an exempt employee’s salary drops below the minimum salary requirement, the employee may no longer be considered exempt. As at the time of writing, the minimum salary requirement for exempt salaried workers, according to the Fair Labor Standards Act is $684 per week or $35,568 per annum – an increment from the $455 per week or $23,660 per year. Subject to California labor law, the general employment rule is that overtime pay is due for every work that exceeds 8 hours a day and 40 hours in a week. But it is the decision of the employer to prove that you are being paid enough to qualify for an exemption. An employer shall not discriminate against an employee for disclosing the employee’s own wages, discussing the wages of others, or encouraging other employees to exercise their equal pay rights.27. We have local employment law offices in and around Los Angeles, San Diego, Orange County, Riverside, San Bernardino, Ventura, San Jose, Oakland, the San Francisco Bay area, and several nearby cities. Likewise, an employer may deduct pay from salaried workers if they take a day(s) off under the Federal Family and Medical Leave Act. If a business closes down for some days in a full week, even for a holiday, all exempt employees should receive their full pay. For example, the minimum wage in Los Angeles County in 2019 is $14.25 per hour (or $13.25 per hour for employers with 25 or fewer employees).9, Additionally, there is a federal minimum wage of $7.25 per hour. Under California wage and hour law, non-exempt employees must receive a thirty (30) minute lunch or meal break if they work more than five (5) hours in a day. Megan may not have a claim against the employer because the employer is compensating Megan at $20.00/hour, which is higher than the California minimum wage at the time of $12.00 per hour for smaller businesses. 8 California Code of Regulations (“C.C.R.”) 11040(1)(A). What is an earned sales commission? If you are employed in California, you may have the assumption that you are eligible to paid overtime if you work for extra hours. California Department of Industrial Relations, Minimum Wage, Los Angeles County Minimum Wage Ordinance. Discretion and Independent Judgment A salaried employee must be paid overtime unless they meet the test for exempt status as defined by federal and state laws, or unless they are specifically exempted from overtime by the provisions of the California Labor Code or one of the Industrial Welfare Commission Wage Orders regulating wages, hours and working conditions.