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Showing posts from May, 2016

California Hourly Wage and Effect on "Exempt Employees"

On January 1, 2016, California’s minimum wage increased to $10.00 per hour.

California’s overtime laws require employers to compensate “non-exempt” employees who work in excess of eight hours in one workday or in excess of 40 hours in one workweek, at a rate of either one and one-half or two times the regular rate of pay, depending on the amount of excess time worked. Exempt status is determined, in substantial part, by whether an employee earns a monthly salary of at least two times the state minimum wage of $10.00 per hour. The minimum wage increase, therefore, now sets a higher compensation threshold that employees must meet to reach exempt status. As of January 1, 2016 an employee must earn at least $20.00/hr. to be considered for exempt status. Of course if an employee meets all the criteria for exempt status the employee is not eligible for over time.

Criteria for exempt status for private sector employees are set forth by California’s Labor Code and by the Industrial Welfare Co…