When you work for a company, whether you’re on salary or paid hourly, you expect fair compensation that meets minimum wage standards. Unfortunately, wage violations are all too common, leaving many employees without the pay they’ve rightfully earned.
Knowing your rights under California salary laws empowers you to stand up for yourself and claim the wages and benefits you’re owed. Learn the basics of the state’s wage regulations and how to hold your employer accountable for violating the law.
An Overview of California Labor Laws
Most employees in California are covered by salary laws, which ensure fair pay whether they work in an office, store, or factory. Your rights depend on whether you’re classified as exempt or non-exempt. This classification affects whether you get overtime pay, meet minimum wage requirements and other benefits.
How do you know which category you fall into? Here’s how exempt and non-exempt employees differ:
Exempt Employees
Exempt employees in California don’t qualify for overtime pay, no matter how many hours they work. If you meet the following two criteria, you are considered an exempt worker:
- Duties test. You perform job duties that fall under executive, administrative, or professional categories. Jobs typically involve tasks like managing others, making impactful decisions, or working in a specialized field that requires professional judgment and discretion.
- Salary test. Exempt employees earn a salary that’s at least twice the state minimum wage for full-time work (40 hours per week). California’s minimum wage is $16 per hour for most non-exempt workers and $20 per hour for food service employees. The minimum monthly salary for exempt employees is $5,547.
Non-Exempt Employees
Non-exempt employees typically perform customer service, administrative work, or manual labor tasks. They are usually paid hourly or earn a salary that doesn’t meet the exempt threshold.
If your job meets these criteria, you’re likely classified as non-exempt and entitled to the following:
- Overtime pay. You’re entitled to overtime pay at a rate of 1.5 times your regular hourly rate for all hours worked over 8 in a workday or 40 in a workweek. You are also entitled to double-time pay for hours worked over 12 in a workday or hours worked over 8 on the seventh consecutive day of work in a workweek.
- Breaks. Non-exempt employees are entitled to rest and meal breaks. Employers in California must give workers a 30-minute unpaid meal break for shifts over 5 hours and a paid 10-minute rest break for every 4 hours worked.
Exemptions From Overtime
While many employees in California are entitled to overtime pay, some are exempt. These exemptions are based on the nature of the job duties and the salary earned. Common exemptions include:
- Executive exemption. Applies to employees who manage a business or a department, supervise at least two other employees, and have the authority to hire and fire.
- Administrative exemption. Covers employees who perform office or non-manual work related to management policies or general business operations and exercise discretion and independent judgment on significant matters.
- Computer software employees. Relates to software professionals who are paid hourly and meet specific criteria, often involving high-level technical tasks.
- Professional exemption. Applies to employees in learned professions such as law, medicine, or engineering, where the work requires advanced knowledge and is predominantly intellectual.
- Outside sales exemption. Applies to employees who regularly work away from the employer’s place of business and spend more than 50% of their time engaged in sales activities.
California Minimum Wage Laws
California has one of the highest minimum wages in the United States. As of 2024, the minimum wage for all employers is $16 per hour, and for food workers, it is $20 per hour.
As a non-exempt worker, you’re entitled to minimum wage in the state. These laws also ensure protections like the following:
- Tip credit. Employers cannot use tips as a credit toward meeting the minimum wage requirement. You must receive the full $20 per hour and any tips you earn.
- Equal pay for all ages. The minimum wage applies equally to both adults and minors. There is no distinction based on age, ensuring fair pay for all workers.
- No agreement for lower wages. Employees cannot legally agree to work for less than the minimum wage. Every worker is entitled to the full amount, regardless of the circumstances.
Minimum Salary Requirements for Exempt Employees
In California, exempt employees must earn a minimum annual salary of $66,560 to maintain their exempt status. This standard applies to most exempt roles, such as executive, administrative, and professional positions.
However, certain professions have different minimum salary requirements. For example, licensed physicians and surgeons must earn at least $101.22 per hour to be considered exempt. Computer professionals must make at least $55.58 per hour or $115,763.35 annually.
Employees not meeting these requirements must be classified as non-exempt, entitling them to overtime pay and additional protections.
Equal Pay in California
An essential protection for workers in California is the right to equal pay, which applies to exempt and non-exempt employees. The California Equal Pay Act ensures that everyone doing substantially similar work receives equal pay, regardless of gender, race, or ethnicity. This law is more expensive than federal equal pay laws, but it targets pay disparities and promotes fairness across all workplaces in the state.
Under this law, employers must provide equal compensation for comparable work in terms of skill, effort, responsibility, and working conditions. This means that whether you’re in an office, on a construction site, or in any other workplace, your pay should reflect the work you do, not who you are.
If you notice a pay discrepancy between yourself and a colleague of a different gender, race, or ethnicity, you can file a wage claim against your employer. This legal action can address and correct the inequity or help you receive a settlement that pays for your lost wages.
Can My Employer Reduce My Wages?
Your employer generally cannot reduce your wages without your consent. Any wage reduction must be communicated to you before it takes effect, and it cannot be applied retroactively to hours you’ve already worked.
If you’re an hourly employee, your employer can lower your hourly rate, but they must notify you in advance and ensure the new rate is at least the minimum wage. For salaried employees, changes to your pay should also be communicated in writing before being implemented.
However, your employer cannot reduce your wages as a form of retaliation or discrimination. If you believe your wages have been unfairly reduced, you may have grounds to file a complaint with the California Labor Commissioner or take legal action to protect your earnings.
If I Am Let Go, What Wages Am I Entitled To?
If you’re let go from your job in California as a non-exempt worker, you’re entitled to receive your final paycheck immediately. This paycheck must include all wages earned up to your last day, including any unused vacation or paid time off (PTO).
California law mandates that if you’re fired, your final paycheck must be handed to you on the same day. If you resign, your employer has 72 hours to pay you unless you give at least 72 hours notice—in that case, you should receive your final paycheck on your last day.
For salaried workers, termination can be more complex. Many companies offer severance agreements to employees, which may include compensation beyond your final paycheck, such as extended benefits or additional pay. While these agreements are not required by law, your employer is obligated to honor the terms of any severance package they offer.
California requires that both parties agree on the terms of the severance agreement. If your employer fails to uphold the terms, you may have legal grounds to pursue the compensation you’re owed. Carefully review any severance package agreement before signing to ensure you understand your rights and what you’re entitled to receive.
What Are My Rights if My Employer Violates Salary Laws?
If your employer violates salary laws, you have several options to protect your rights and recover any unpaid wages. Take the following steps:
- Speak with your employer. Address the issue directly with your employer or HR department. This shows you tried to resolve the issue internally and provides documentation of your employer’s response.
- Gather evidence. Keep detailed records of your hours worked, pay stubs, and correspondence related to your pay. You can use this documentation to support future legal claims.
- File a complaint. File a wage claim with the California Labor Commissioner’s Office (LCO). Follow the steps outlined by LCO based on your specific industry to initiate the claim. You can start the process online, but you may also visit the LCO in person, mail in your forms, or use email.
- Consult an attorney. Speak with an employment law attorney throughout your case. Your attorney will explain your rights and protect your interests during mediation or negotiations with your employer. They can also help you file a complaint or represent your case in civil court if the complaint process doesn’t lead to a fair resolution.
Know Your Wage Rights in California
California’s salary laws give you the tools to ensure fair compensation for your work. These laws safeguard your rights, whether you’re an exempt employee in a professional role or a non-exempt worker entitled to overtime.
If you have concerns about your salary or believe your employer isn’t complying with California labor laws, take steps to protect yourself. Seek advice from an employment law attorney to understand your entitlements and secure the fair treatment you deserve under California law.
