If I put an employee on salary, are they exempt from overtime?
HRCalifornia
Not necessarily. Paying an employee a salary does not, by itself, make the employee exempt from overtime.
Nonexempt salaried employees are still entitled to overtime, and employers must track all hours worked. A salaried employee is exempt only if they meet all exemption requirements.
To qualify as exempt under California and federal law, the employee must:
- Primarily be engaged in exempt duties that meet the exemption;
- Meet California’s strict duties test; and
- Earn a salary of at least twice the applicable statewide minimum wage for full-time work.
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