The California Department of Industrial Relations (CDIR) oversees labor laws for California employees to ensure they are treated fairly and paid properly. One area of these laws concerns salaried employees, who need to understand their rights and those of their employers. In this post, you will learn what California labor law says about salaried employees and explain who they are.
Who is a Salaried Employee?
Under labor laws for salaried employees in California, you receive a fixed compensation for your work, usually expressed as an annual salary. Unlike hourly employees, your pay is not based on the number of hours you work. Instead, you are compensated for the job, regardless of the hours worked. This means that even if you work more than 40 hours per week, you may not be entitled to overtime pay, depending on your classification.
Exempt and Non-Exempt Salaried Employee
Salaried employees in California can be classified as exempt or non-exempt based on their job duties and salary level. Exempt employees are exempt from certain labor laws, including overtime pay provisions, while non-exempt employees are entitled to these protections.
To be classified as exempt, you must meet specific criteria outlined by the California Labor Code and the federal Fair Labor Standards Act (FLSA). These criteria include the nature of your job responsibilities, salary level, and ability to exercise independent judgment. Note that job titles alone do not determine exempt status.
Unavailability of Work or Business Closures
Salaried employees may face reduced or eliminated pay when work is unavailable or business operations are temporarily closed. However, there are labor laws in place to protect employees in such circumstances.
If you are an exempt employee, your salary generally cannot be reduced due to the unavailability of work. On the other hand, non-exempt employees may experience reduced pay during business closures but are still entitled to the minimum wage and overtime pay, if applicable.
Salaried Employees and Overtime Pay in California
While exempt salaried employees are not entitled to overtime pay, non-exempt salaried employees are eligible for overtime compensation. Non-exempt salaried employees must be paid overtime for any hours worked beyond 8 hours in a day or 40 hours in a week.
The overtime rate is typically 1.5 times the regular rate of pay. It’s important to note that even if you are classified as a salaried employee, that does not automatically mean you are exempt from overtime pay.
Nonexempt Salaried Workers and Overtime Pay
Non-exempt salaried workers in California are subject to the same overtime laws as nonexempt hourly employees. You are entitled to overtime pay if you work more than 8 hours a day or 40 hours a week. The calculation of overtime pay for nonexempt salaried workers is based on the regular pay rate, which includes the salary divided by the number of hours the salary is intended to cover.
Overtime Pay Calculation
To calculate overtime pay for nonexempt salaried employees, you determine the regular pay rate. The regular rate is calculated by dividing the employee’s salary by the number of hours the salary is intended to cover. For example, if your weekly salary is $800 and covers 40 work hours, your regular pay rate is $20 per hour. If you work overtime, your overtime rate would be $30 per hour (1.5 times the regular rate).
Rest and Lunch Breaks for Salaried Employees
In California, all employees, including salaried employees, are entitled to rest and meal breaks. If you work more than 3.5 hours daily, you are entitled to a 10-minute paid rest break. For every 5 hours of work, you must receive an unpaid 30-minute meal break. If your workday exceeds 10 hours, you are entitled to a second 30-minute meal break. These breaks are essential for your well-being and should be provided by your employer.
California Law on Salary Reduction
Employers may attempt to reduce a salaried employee’s compensation in certain situations. However, California labor laws restrict salary reductions in most cases. If you are an exempt salaried employee, your salary generally cannot be reduced due to the quality or quantity of your work. Non-exempt salaried employees, while protected from salary reductions based on performance, may have more flexibility regarding salary adjustments.
Pay Deductions from Salaried Employees
Under California labor laws, employers are generally prohibited from deducting a salaried employee’s pay for partial-day absences or other minor infractions. However, there are exceptions to this rule, such as when deductions are made for time off taken under the Family and Medical Leave Act (FMLA) or when authorized by a collective bargaining agreement.
Working on a Day Off
You may be entitled to additional compensation if you are a salaried employee and must work on a day off. In California, if you work on your regular day off (such as a weekend or a designated day of rest), you may be eligible for one and a half times your regular pay rate for hours worked. This ensures that employees are adequately compensated for their time and encourages employers to respect their days off.
Minimum Wages
California has specific minimum wage laws for all employees, including salaried employees. The minimum wage in California varies depending on the employer’s size and the locality. As of January 1, 2023, the minimum wage for employers with 26 or more employees is $15 per hour, and for employers with 25 or fewer employees, it is $14 per hour. It’s important to stay updated on any minimum wage changes to ensure you receive fair compensation.
How Do I Know If a Salary Position Is Right for Me
Determining whether a salary position is the right fit for you requires considering various factors. Assess your job responsibilities, the potential for overtime, your work-life balance, and your financial goals. A salary position can provide stability but may require additional hours without overtime compensation. Consider your personal preferences and priorities to make an informed decision.
The California Law About Employer’s Retaliation
California labor laws protect employees from employer retaliation for exercising their legal rights. You may have legal recourse if you believe your employer has retaliated against you for engaging in protected activities, such as reporting labor law violations or filing a complaint. It’s essential to consult with an employment law attorney to understand your rights and take appropriate action.
Remember, being aware of your rights and the labor laws that apply to you as a salaried employee in California is crucial for maintaining a fair and equitable work environment. If you have any questions or concerns regarding California labor laws for salaried employees, it’s recommended that you consult with a qualified employment law attorney. Stay informed, advocate for yourself, and seek professional advice to successfully navigate employment law’s complexities.
