How do I know if I am exempt from overtime pay?
As of 2023, to be exempt from overtime pay, you must make at least $62,400.00 per year or $5166.66 per month. To be classified as an exempt employee, your salary must be at least twice California’s minimum wage for full-time employment.
Author: Brad Nakase, Attorney
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Exempt employees are exempt from California overtime pay. Therefore, if you are truly an exempt employee, your employer does not need to pay you for overtime work which is time and a half. Overtime work is any time that is more than eight hours in a workday or more than 40 hours in a workweek. A 40-hour work week is considered full-time making eight hours per day. All hours worked after these eight hours per day or 40 hours per week are considered overtime.
In this article, our employment lawyer in San Diego discusses how to know if you’re exempt from overtime pay as follows:
What does exempt mean for overtime pay?
Employers are not required to pay overtime to employees who are properly classified as exempt. Exempt employees do not receive overtime pay and do not qualify for minimum wage. An “exemption” means that the overtime law does not apply to a particular classification of employees. If employees are non-exempt, it means they are entitled to minimum wage and overtime pay when they work more than 40 hours per week. Exempt employees who are exempt from overtime pay do not receive overtime pay and do not qualify for minimum wage.
How do you tell if you’re exempt or nonexempt?
Exempt vs Non-Exempt Employee. The difference exempt vs non-exempt employee status is an employee’s eligibility for overtime pay. If employees are non-exempt, it means they are entitled to minimum wage and overtime pay when they work more than 40 hours per week.To determine whether an employee is entitled to overtime, it must first be decided what category the employee falls into, exempt or non-exempt. Non-exempt employees usually receive more benefits than that exempt employees, including overtime.
In California, Non-exempt employees have the right to (1) overtime when working over 40 hours; (2) right to be paid minimum wage (currently not less than $10); and (3) right to certain breaks including lunch/dinner. However, this usually applies to non-exempt employees.
To be exempt from overtime pay in California, the employee must meet certain requirements. These include all of the following:
- Making at least twice California’s minimum wage. Employees may be considered exempt if they are paid a salary, earn at least $62,400.00 per year, and perform work duties of one of the exempt professions (executive, manager, supervisor, etc.)
- Can make independent judgments. An exempt employee must be able to independently determine a course of action over matters of significance, free from the supervisor’s direction.
- Work in an exempt employee role. Common categories of exempt employees include administrative employees, licensed professionals, outside sales employees, computer employees, and executive employees.
Therefore, to be an exempt employee and exempt from overtime pay, you must work in an exempt role, make independent judgments, and make at least $62,400 annually in 2023. You are entitled to overtime pay as a non-exempt employee if you make less than $62,400 per year, cannot make an independent judgment, or do not work in any exempt role category. If you’re an non-exempt employee and was not paid for overtime, contact our employment attorney to determine how much overtime pay you’re owed. We can help you get that money without any upfront money to pay an attorney.
Blog: Business | Corporate | Employment Law
