In order for a professional, administrative, or executive employee to be exempt from overtime in California, the minimum annual salary must be at least $37,440 as of July 1, 2014. This is a result of California’s new hourly minimum wage of $9.00 per hour. The minimum annual salary for exempt workers is calculated by multiplying $9.00 per hour times 40 hours per week times 52 weeks per year, and then doubling that figure. Our June 19, 2014, newsletter contained the old figure of $33,280. Keep in mind that exempt status depends not only on meeting a minimum salary, but also on performing relatively high-level job duties. To learn more, see our Legal Guide, “State Laws on the White Collar
Exemptions from Overtime” (4051).
This website presents general information in nontechnical language. This information is not legal advice. Before applying this information to a specific management decision, consult Vigilant or legal counsel.