In California, salary pay does not decide overtime; job duties, pay threshold, and hours worked do. See who is exempt, common misclassification signs, unpaid overtime rules, and options for wage claims or lawsuits.
By Brad Nakase, Attorney
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Many California exempt workers suffer from their employers’ infractions of overtime regulations each year. The most prevalent misperception among employers is that salaried or exempt workers are not eligible for overtime pay. This isn’t true. Many salaried employees are either not exempt or do not qualify for the particular exemptions outlined in the FLSA (Fair Labor Standards Act).
Although receiving a salary represents one of the prerequisites to be exempt from overtime compensation, it is not the sole one. Furthermore, you are not exempt and have to be paid for overtime if all the requirements are not fulfilled. Additionally, businesses regularly misclassify employees as exempt so as to avoid incurring overtime.
In California, working more than eight hours a day or a forty-hour work week is referred to as overtime (Labor Code 510). Work completed after 8 hours of labor in a day is typically required to be paid. The amount of remuneration should be at least 1.5 times your regular pay rate. Furthermore, any additional labor completed beyond forty hours per week must be paid at a rate equal to at least 1.5 times your regular pay rate.
Salaried employees are either exempt or non-exempt under California’s Employment and Labor Codes. Essential laws regarding wages and hours, such as those concerning overtime, do not apply to exempt workers. Non-exempt employees, on the other hand, are covered by wage & hour regulations, which include rules requiring rest and food breaks as well as overtime regulations.
It’s a common belief that anyone who works in an office and gets paid is exempt. It is untrue. For example, even though you are an exempt salaried worker, your employer may withhold money from your compensation when you:
In this instance, you are no longer an exempt employee and are entitled to overtime compensation.
Administrative, professional, and executive workers who make at least twice the minimum wage are the main and most important group of exempt workers. White-collar exemption is another name for the exemption from overtime regulations.
Only those who fit the lawful California Labor Code classification are exempt from overtime regulations. An employer cannot designate a worker as exempt simply by:
With the aim of being exempted from overtime regulations, an employee must:
A lot of workers ask, “If I am on a salary, do I get overtime?” Employers often say no. That answer is usually incomplete.
The statute clarifies that, in addition to the professionals (white-collar) we previously discussed, other workers are also categorized as exempt, meaning they are not subject to the overtime regulations. The broad exemption may also apply to many of the employees covered by these specific exemptions. They comprise:
1. Registered Nurses
For registered nurses, there is an exception to the standard professional pay per hour exemption. These nurses are typically not exempt employees. This implies that they are eligible for overtime, unless their primary responsibilities are executive or administrative. If they fulfill additional standards for white-collar exemptions, they are also exempt.
2. Computer Software Workers
Certain computer software experts are free from wage, hour, & overtime regulations under the Labor Code. You will be eligible for the exemption if you primarily work in:
All of the information that follows must be true in addition to being principally engaged in the aforementioned tasks:
You are not eligible for the IT software professional pay per hour exemption if:
People ask, “If I am on a salary, do I get overtime?” The real answer doesn’t depend on the titles.
3. Doctors and Surgeons
Licensed physicians and surgeons who predominantly perform tasks requiring a license are another group of employees exempt from overtime regulations. Interns, residents, and physicians represented by collective bargaining agreements are not eligible for this exemption.
4. Teachers at Private K–12 Schools
Another group of professionals exempt from California’s overtime regulations is private K–12 educators. For a person to qualify for the wage per hour exception as a private school teacher, you must:
Teachers in private K–12 schools are only exempt from overtime regulations if they get the greater of these sums:
5. Workers at the Government and the University of California
Laws related to overtime, rest periods, and food breaks do not apply to state or municipal government workers. In addition, the California Constitution exempts all University of California employees from these laws.
6. Employees Getting Commissions
Overtime regulations do not apply to workers who receive commissions for their labor. This covers employees who:
7. Truck Drivers
Certain truck drivers are not protected by overtime legislation. They are not, however, immune to other job rights, such as the minimum pay and rest and food breaks. Interstate freight drivers and truckers who transport hazardous products are exempt from overtime. In certain cases, either federal or California motor vehicle laws govern the work hours of drivers.
In California, the usual rule at work is simple. You earn overtime after eight hours in a day or forty in a week. Some employers tell workers that a salary means no overtime applies. That leaves employees putting in long days, feeling stuck, while no additional pay ever shows up. This is despite expectations, responsibilities, & pressure that quietly build over time without relief or real compensation change.
The reality of this is really nuanced. When you start working in California, you are presumed to be entitled to overtime compensation in the event that you put in more hours. It is your employer’s responsibility to demonstrate your exemption from overtime regulations. To qualify for an exemption, your company must demonstrate that it makes sufficient compensation.
Currently, in order for your company to classify you under the majority of overtime exemptions, you must earn at least $33,280 annually. In most circumstances, you will be entitled to overtime pay if your income falls below the aforementioned threshold.
Your wages should be sufficient for you to be exempt from overtime compensation. Even so, your employer must demonstrate that the type of job you perform qualifies for an overtime exemption. The administrative, executive, and professional exemptions are examples of common overtime exemptions. No matter how many hours a week or day you put in, you are not entitled to overtime if you meet the job conditions for these exclusions.
“If I am on a salary, do I get overtime?” This is answered by how the law classifies your work.
Workers can be classified as either exempt or non-exempt, as we previously discussed. This is for the purposes of federal & California wage and hour requirements. While non-exempt employees are entitled to these safeguards, exempt workers are not covered by specific wage & hour regulations.
If a California employee performs non-exempt work for their employer, they are legally regarded as non-exempt. Regardless of their job title, the employee should work more than half of the time. Non-exempt employees are normally paid on an hourly basis. Exempt employees receive an annual wage.
Flipping burgers and filling drinks might take more than half of your workday. Even if your position is “manager,” you will not be excluded in this case. If you are compensated on a salary basis rather than an hourly basis, the same principle still holds true. In addition to normal rest and lunch breaks, non-exempt workers are required to get overtime compensation.
Employers frequently—possibly on purpose—classify employees under one of the aforementioned exemptions without a valid reason, which is against labor rules. For example, you must regularly supervise at least two employees so as to be exempted from overtime using the executive exemption. Additionally, you ought to be involved in hiring, dismissing, and disciplinary measures. Most of the time, some firms will pay a worker a wage and designate them as supervisors in the hopes that this will make them exempt.
In situations such as these, the supervisor typically serves as a lead and has minimal executive authority. They will spend a lot of time performing the same tasks as their subordinates, which explains this. There is most likely a misclassification in these situations. The supervisor may be entitled to a sizable amount of unpaid overtime that has accrued. The abuse of professional & administrative exemptions is likewise comparable.
Workers in California can sue their employers for violating labor regulations. Successful wage & hour claims involve inadequate worker classification, underpayment of overtime, or breaches of equal pay.
Your employer may be required to compensate you for unpaid overtime if you are mistakenly categorized as exempt. Additionally, for each meal interval you were refused, your employer might owe you an hour’s wages. If your employer violates the Equal Pay Act, they may be held liable for the earnings you were denied. Interest, legal fees, and an additional sum equal to liquidated damages are all included in the payments.
You may be entitled to damages if the company retaliates against you in breach of the Equal Pay Act by lowering your pay, cutting your hours, or firing you. You are entitled to restitution and reinstatement for missed wages and employment resulting from your employer’s actions. Interest and appropriate equitable relief can also be obtained.
Asking, “If I am on a salary, do I get overtime?” early can prevent months or years of unpaid labor.
In general, an employer may reduce an employee’s pay for any legitimate cause. In California, there is no particular labor regulation that prohibits an employer from lowering an employee’s pay. Employers are not permitted to reduce an employee’s pay to less than the minimum wage, though.
Your company may reduce your pay if you’re classified as an exempt employee, as long as it doesn’t go below the minimum wage for exempt workers.
You might no longer be regarded as an exempt employee if your pay falls below the required minimum wage. This implies that you might become a non-exempt worker. Additionally, you would be safeguarded by wage and hour rules as a non-exempt worker. This covers food breaks, rest periods, and overtime compensation.
However, your exempt status might not be revoked if your employer reduces your pay based on fewer work hours. Wage reductions based on work hours are incompatible with exempt workers’ wage basis standards. Exempt employees are probably paid according to their position rather than the overall number of hours they put in.
Many employees want to know if they will be paid for working overtime without permission. Yes is the response. Regardless of authorization, the law requires businesses to pay overtime payments. If an employee works overtime without permission, the employer has the right to reprimand them. Wage and hour regulations, however, require that an employee be compensated for the number of hours they are allowed or forced to work. This holds true whether or not they were compelled to do so.
According to California case law, “permit or suffer” refers to obligations that the employer knew or ought to have known. An employee cannot intentionally keep their employer in the dark about the unapproved overtime they performed & then return to demand payment. The employer must maintain accurate time records. They must pay you for the labor they perform, which benefits you.
Another situation is when a worker’s schedule and working hours are set by their employer. Additionally, if an employee refuses a job scheduled overtime, the employer has the authority to sanction them under most circumstances, including firing them.
The manager cannot penalize you if you don’t show up for work on the seventh day of a workweek. Your employer should be held responsible for making you miss your day off if they require you to work on this specific day. When a worker is fully aware of their entitlement to rest, they are free to decide not to.
According to Labor Code 204, overtime compensation must be paid before the next regular payroll period’s paycheck.
Keep in mind that an employee’s right to overtime compensation cannot be waived. Regardless of any agreement to work for a reduced salary, the law requires that a worker be paid for all overtime hours completed. Therefore, even if an employee waives their entitlement to overtime compensation, it won’t stop them from getting the money they have a right to (Labor Code 1194).
You can take either of the two actions if the company does not pay you overtime. The Division of Labor Standards Enforcement (the Office of the Labor Commissioner) is one place to submit a wage claim. Suing the company you work for is the second stage. To increase your chances of getting all of the lost pay back, you ought to do this with legal assistance. In accordance with Labor Code 203, you may also submit an appeal for the waiting time fine if you are no longer employed by the company.
California overtime rules don’t work the way most people think they do. Being on a salary doesn’t automatically erase your right to extra pay. A job title doesn’t either. What counts is the real work you do every day. Not what your offer letter says. And this is where many workers get trapped without realizing it.
A lot of employers mislabel roles. Some out of ignorance. Some because it saves money. Employees go along with it. They work longer hours, skip breaks, & assume that’s just how the job is. Often, it isn’t.
If you are putting in late nights or extra days and nothing changes on your paycheck, that’s a red flag. The law puts the responsibility on the employer to prove you are exempt. Not the other way around.
Misclassification adds up quietly, paycheck by paycheck. Lost overtime. Missed meal breaks. Real money. Knowing how the law actually works definitely gives you leverage. That knowledge can sometimes be enough to bring a change in the right direction.
1. I receive a salary: Do I forfeit my right to overtime?
No. Being salaried alone doesn’t cancel overtime. Your job duties and pay level matter more.
2. Can my employer call me “exempt” just because I’m on a salary?
No. Titles and pay method don’t decide exemption. The actual work you do does.
3. What happens if I’m wrongly classified as exempt?
You may be owed unpaid overtime, missed meal/rest break pay, & penalties.
4. I worked extra hours without approval: Do I get overtime?
Yes. Your employer must pay if they knew or should have known you worked those hours.
5. What should I do if my overtime isn’t paid?
You can file a wage claim with the Labor Commissioner. You can also take legal action against your employer.
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