California and federal law generally require that employees working over 40 hours in a workweek be paid an overtime premium rate for those additional hours. California law also requires that employees who work more than 8 hours in a day be paid overtime, and double-time if they work more than 12 hours in a day. Generally, the majority of employees in any given workforce will be nonexempt.
There are limited exemptions from this default status for certain administrative, executive, and professional employees, as well as some salespeople. The burden is on the employer to justify applying an exemption to an employee or a group of employees. This means that regardless of the employee’s job title, you still have to be able to demonstrate that the employee qualifies for the exemption.
While each category of exemption has its own requirements and nuances, the following general requirements apply to all exemptions:
1. The employee must be paid on a salary basis
2. The employee must earn a certain minimum amount
3. The employee must perform certain kinds of duties at work
For more, check out our free White Paper: Who’s Entitled To Overtime: How To Avoid Mistakes When Classifying California Employees.
Because the FLSA does not preempt state law, an employer who is subject to both must comply with whichever is the most onerous. For example, it’s harder under California law than under federal law for an employer to establish that an employee is exempt.
Employers doing business in California must be aware of all of the requirements of both laws!
Because the FLSA does not preempt state law, an employer who is subject to both must comply with whichever is the most onerous. For example, it’s harder under California law than under federal law for an employer to establish that an employee is exempt.
Employers doing business in California must be aware of all of the requirements of both laws!