California enforces strict overtime pay laws that protect both hourly and salaried employees. However, salaried employees are not automatically exempt from overtime regulations. Whether an employee qualifies for overtime depends on several factors, including their job duties, salary level, and exemption status.
It is important for both employers and employees to understand these rules in order to avoid potential violations and ensure fair compensation for overtime work.
Understanding salaried employees
Salaried employees receive a fixed salary, not an hourly wage. However, a salaried position alone doesn’t determine whether overtime applies. Job duties and salary level also matter when assessing overtime eligibility.
Exempt vs. non-exempt employees
California employees are classified as exempt or non-exempt from overtime. Exempt employees are typically in executive, administrative, or professional roles. They may be exempt from overtime if they perform specific tasks and earn a minimum salary. Non-exempt employees, regardless of salary, must receive overtime pay.
Exempt workers must perform executive, administrative, or professional duties and earn at least twice the state minimum wage. If a salaried employee doesn’t meet these criteria, they are non-exempt and eligible for overtime.
Salary thresholds for overtime eligibility
As of 2025, the minimum salary threshold for exempt employees is $68,640 annually, or $5,720 per month. Employees who earn less are generally entitled to overtime pay, regardless of job duties. Employers need to assess both salary and duties to determine exemption.
What constitutes overtime for salaried employees?
Non-exempt salaried employees are entitled to overtime pay for hours worked beyond 8 hours per day or 40 hours per week. Overtime pay is one and a half times the regular hourly rate. Employees also earn double time for hours worked over 12 hours per day or for work on the seventh consecutive day.
Important exceptions
Certain jobs, like computer professionals or outside salespeople, have different overtime rules based on industry and salary thresholds. Employers should review these exceptions to determine how they apply to salaried employees.
Salaried employees in California are not automatically exempt from overtime. Employers must evaluate whether a worker’s duties and salary meet exemption criteria. Non-exempt salaried employees are entitled to overtime.