If my employee earns more than $100,000 per year, are they exempt from overtime?

Not necessarily. Employers and employees in California are covered by both federal and state laws. Employers in California must abide by whichever law provides greater protection or advantages to its employees.

The federal laws relating to wages and hours for employees are set forth in the Fair Labor Standards Act (29 U.S. Code, Chapter 8). Section 13(a)(1) does provide an exemption from the federal overtime and minimum wage requirements for highly compensated employees (those earning in excess of $107,432 per year).

California law, however, does NOT have a similar exemption. In California, for an employee