A Complete Guide to California Salaried Employee Laws in 2025
California has some of the most employee-friendly labor laws in the country, including specific regulations for salaried employees. Whether you are an employer or an employee, understanding these laws is crucial to ensure compliance and protect worker rights. This guide will walk you through key aspects of California salaried employee laws, including exemptions, overtime rules, and employee benefits.
What is a Salaried Employee?
Salaried employees receive a fixed annual or monthly wage instead of being paid hourly. However, not all salaried employees are exempt from overtime pay or other labor protections.
Exempt vs. Non-Exempt Employees
In California, employees are classified as exempt or non-exempt based on their job duties, salary, and level of independent decision-making.
Exempt Employees
Under California labor law, exempt employees are not entitled to overtime pay or meal and rest breaks. To qualify as exempt, an employee must:
- Earn at least twice the state minimum wage for full-time employment (as of 2024, this means earning at least $66,560 per year for employers with 26 or more employees and $64,480 for smaller businesses).
- Perform white-collar job duties, such as executive, administrative, or professional roles.
- Exercise independent judgment in their work.
Non-Exempt Employees
Non-exempt salaried employees are entitled to overtime pay and meal and rest breaks. Even if they are salaried, they must be paid overtime if they work more than:
- 8 hours per day or 40 hours per week (overtime at 1.5x their regular rate).
- 12 hours per day (double time for hours beyond 12).
- 7 consecutive days in a workweek (overtime rules apply on the 7th day).
Overtime Laws for Salaried Employees in California
Many salaried employees assume they are automatically exempt from overtime, but this is not always true. Employees who do not meet all exemption criteria must be paid overtime for excess hours worked. Employers must carefully track hours and pay accordingly to avoid legal issues.
Meal and Rest Breaks for Salaried Employees
Non-exempt employees must receive:
- A 30-minute unpaid meal break if they work more than 5 hours.
- A second 30-minute meal break if they work more than 10 hours.
- A 10-minute paid rest break for every 4 hours worked.
Exempt employees are not legally entitled to these breaks, but many employers offer them as a best practice.
California Paid Sick Leave and Other Benefits
California law mandates paid sick leave for all employees, including salaried workers. Employees accrue one hour of paid sick leave for every 30 hours worked, with a minimum of 24 hours (or 3 days) per year.
Other benefits that may apply to salaried employees include:
- Family and Medical Leave (FMLA/CFRA) – Up to 12 weeks of unpaid leave for eligible employees.
- Paid Family Leave (PFL) – Partial wage replacement for up to 8 weeks.
- Workers’ Compensation – Coverage for work-related injuries and illnesses.
Wrongful Misclassification of Salaried Employees
Employers sometimes misclassify workers as exempt to avoid paying overtime or providing benefits. If an employee is misclassified, they may be entitled to payback, penalties, and legal recourse. If you suspect misclassification, you can file a wage claim with the California Labor Commissioner’s Office.
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Key Takeaways
- California’s Salaried employees are exempt or non-exempt, with different legal protections.
- Exempt employees do not receive overtime, while non-exempt employees do.
- Non-exempt salaried employees are entitled to overtime pay, meal breaks, and rest breaks.
- Paid sick leave and other benefits apply to all employees, regardless of exemption status.
- Misclassification can lead to legal consequences for employers.
Understanding California’s salaried employee laws helps employees and employers maintain compliance and protect workplace rights. Consulting a labor law attorney or the California Department of Industrial Relations can provide guidance if you have concerns about your classification or wages.
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FAQs:
A salaried employee receives a fixed annual or monthly wage, regardless of the number of hours worked. However, being salaried doesn’t automatically mean exemption from overtime and other labor protections.
Exempt employees aren’t entitled to overtime pay or specific meal and rest breaks. To be classified as exempt, an employee must:
- Earn at least twice the state minimum wage for full-time work.
- Perform duties in executive, administrative, or professional roles.
- Exercise independent judgment in their tasks.
Non-exempt employees, even if salaried, are eligible for overtime pay and mandated breaks.
Non-exempt salaried employees must receive overtime pay if they work more than:
- 8 hours in a day or 40 hours in a week (1.5 times the regular rate).
- 12 hours in a day (double the regular rate).
- 7 consecutive days in a workweek (overtime applies on the 7th day).
Employers are required to track hours accurately and compensate accordingly.
Non-exempt employees are entitled to:
- A 30-minute unpaid meal break if working more than 5 hours.
- A second 30-minute meal break if working more than 10 hours.
- A 10-minute paid rest break for every 4 hours worked.
Exempt employees aren’t legally required to have these breaks, but many employers provide them as a good practice.
If you suspect misclassification, which can affect your eligibility for overtime and benefits, consider:
- Discussing your concerns with your employer’s HR department.
- Filing a wage claim with the California Labor Commissioner’s Office.
- Consulting with an employment attorney to understand your rights and potential remedies.
Misclassification can lead to back pay and penalties for employers.