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The new rule requires that exempt salaried employees must be paid at least $684 per week, or $35,568 annually. Employees who do not meet this salary level must be classified as non-exempt, and be paid overtime for all hours worked over 40 in a workweek. Employers have two compliance options: Raise Salary.
Under California employment law, salaried employees can be classified as exempt or non-exempt. Exempt salaried employees may not be eligible for overtime. However, employers have to pay salaried exempt employees at twice the minimum hourly wage based on a 40-hour workweek.
Salaried non-exempt employees are also protected by California wage and hour laws--including overtime laws and laws requiring meal and rest breaks. Under the California Equal Pay Act, employers are prohibited from paying a lower salary to employees of the opposite sex for equal work.
There is no limit on the number of hours a salaried exempt employee 16 years of age or older, who meets the requirements of 29 C.F.R. Part 541, may work per day or per week. A salaried non-exempt employee is subject to the same 40 hours per week overtime standard as employees paid on an hourly basis.
The FLEA does not require that nonexempt employees be paid hourly. Salaried nonexempt employees are still entitled to FLEA overtime pay if, when and to the extent that they actually work more than 40 hours in a work week.
Employees who are exempt can work over 40 hours without additional compensation. Here's why: the FLEA and state fair labor standards legislation requires employees who work more than 40 hours in any work week to be paid time-and-a-half for those hours.
The minimum salary requirement for exempt employees according to the Fair Labor Standards Act (FLEA) is $23,600 per year or $455 per week. However, the exempt salary minimum alone does not classify an employee as exempt. Salary level is one of three tests used to determine employee exempt status.
As a reminder, the current minimum annual salary for most exempt managerial, administrative, and professional employees in California is $49,920 ($45,760 for employers with 25 or fewer employees). There are also unique California requirements for certain computer professionals and doctors.
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