The Two Classifications of Salaried Employees

1. Exempt Salaried Employees 

To be properly classified as "exempt" (meaning you are excluded from overtime and mandatory break laws), your employer must prove your position passes a strict three-part test under

The Salary Threshold Test: You must earn a guaranteed, fixed salary of at least twice the state minimum wage for full-time work. As of January 1, 2026, this threshold is $70,304 annually ($5,858.67 per month).

The Duties Test: Your actual day-to-day responsibilities must be primarily (more than 50% of your time) executive, administrative, or professional. [1, 2]

Independent Judgment: You must regularly exercise discretion and independent judgment in your role.

Your Rights If Properly Exempt:

Full Week Salary Pay: You must receive your full weekly salary for any week in which you perform any work, regardless of the hours logge

No Partial-Day Wage Deductions: Employers cannot dock your pay if you miss a few hours of work on a given day.

Deduction Limits: Employers can only deduct pay for full-day absences if you have no remaining paid leave under a bona fide sick or vacation policy.

2. Non-Exempt Salaried Employees

If you earn less than $70,304 per year, or if your daily duties do not meet the executive/administrative definition, you are legally non-exempt—even if you are paid a salary

Your Rights If Non-Exempt:

Overtime Compensation: You must be paid 1.5 times your regular rate for work exceeding 8 hours a day or 40 hours a week. You must receive double pay for hours exceeding 12 in a single day.

Mandatory Meal Breaks: A 30-minute unpaid, uninterrupted meal break must be provided before your 5th hour of work. Employment lawyer near me California

Mandatory Rest Breaks: A 10-minute paid rest break must be provided for every 4 hours worked.

Missed Break Penalties: Your employer must pay you an extra hour of regular pay for every day a meal or rest break is improperly denied