Discuss and navigate through the challenges so many of us are experiencing, plus get practical ideas to improve your site and staff morale. LEAVE US A REVIEW Kyle D. Smith is an associate of Melmed Law Group P.C. Proposed Nursing Home Disclosure Requirements Target Private Equity Regulation in the Post-FTX Environment: SECs Proposed Enhanced Can a Child Decide Whom They Want to Live With in Michigan? Prepare for that transition now to ensure that any reclassified employee understands their timekeeping requirements, overtime, meal and rest break obligations, etc. Current $15.00/hour rate expected to increase on 1/1/23, as it will be below the state minimum wage. (c) [excluding short-term productivity bonuses, bonus and profit-sharing plans that are not based on a fixed percentage of sales or profits, and [t]emporary, variable incentive payments that increase, but do not decrease, payment under the written contract from the statutory definition of a commission]., Overtime Exemption for Licensed Physicians and Surgeons (Oct. 2022), available here (Opens in new window), Labor Code, 515.6 [Section 510 shall not apply to any employee who is a licensed physician or surgeon, who is primarily engaged in duties that require licensure pursuant to Chapter 5 (commencing with Section 2000) of Division 2 of the Business and Professions Code, and whose hourly rate of pay is equal to or greater than fifty-five dollars ($55.00). Instead, they will be considered exempt if: Employees who are considered outside salespersons are generally considered exempt employees.37 An outside salesperson is defined as someone: Some truck drivers are exempt from Californias overtime laws (but not other employment rights, like meals breaks or the minimum wage).39 This exemption applies to interstate truck drivers and drivers who transport hazardous materials.40, In those situations, the drivers hours are controlled by either: federal regulations,41 or Californias motor vehicle regulations.42, Union employees are sometimes exempt from Californias overtime laws.43 To qualify as exempt, the employees must be employed under a collective bargaining agreement that expressly provides for the wages, hours of work, and working conditions of the employees.44, The collective bargaining agreement must also provide premium wage rates for all overtime hours worked and a regular hourly rate of pay of at least 30 percent more than the state minimum wage.45. Reminder: High-Earning Exempt Professionals Must Be Paid a "True Gold Dome Report Legislative Day 24 (2023). Tonis weekly salary for that week should be no less than $713.00 (40 hours at $15.50/hour ($620.00), plus 4 hours at $23.25/hour of overtime ($93.00). Your regular paychecks should be at least $ (before taxes and deductions). In order to receive Membership Discounts, please login. Click here to secure your early bird ticket before they run out. For additional information about general questions regarding the Minimum Wage please see the . If you require legal advice, you should contact a lawyer to advise you personally about your situation. ADVANCED! (B) A merit system. Previously, the State of California employed a two-tiered minimum wage system, requiring employers with 25 or more employees to pay a higher minimum wage than employers with fewer than 25 employees. However, if the employer reduces an exempt employees salary based on a reduction of hours, that may disqualify the employees exempt status. If there is a discrepancy or you have concerns, speak with a wage attorney in California immediately. In general, your employer can reduce your salary for any lawful reason. In addition, these professionals must perform certain work duties to qualify as exempt employees. The report must include the median and mean hourly rate of payroll employees and/or labor contractor employees by establishment, job category, race, ethnicity, and sex. Salaried non-exempt employees cannot be paid less than the state minimum wage. (1)(C)., Cal. Exempt employees in California generally must earn a minimum monthly salary of no less than two times the state minimum wage for full time employment. 3., Cal. 8, 11010, subds. Megans employer tells Megan her salary will further be reduced to $700 per week because she was asking other employees about their salaries, which is none of her business. California law is governed, in part, by a series of regulations called wage orders, which have been issued Californias Industrial Welfare Commission.46 The wage orders have adopted several exceptions to Californias overtime laws, in addition to those listed above, that apply to workers in specific industries or jobs. 3. California law provides that overtime-exempt employees must receive a salary that is not less than two times the state minimum wage. Labor Code 1182.12 LC, endnote 8 above. (a); Cal. An excluded employee is excluded from collective bargaining under the collective bargaining statutes (the Dills Act). California Labor & Employment Attorney Wage and Hour Laws Salary Laws. Check the law and then check to see how much your employer is paying you in January. However, overtime-exempt employees working in one of these cities need not be paid more than the California state minimum annual salary of $64,480. Exempt employees are not covered by most California wage and hour laws. Non-exempt employees working within one of these cities must be paid the local minimum wage when greater than the California state minimum wage. The minimum salary requirement for 2023 for white-collar workers is $64,480. In 2023, an employee in your situation is usually entitled to a minimum wage of at least $15.5015.50 per hour, plus overtime if you work more than 8 hours in a day or 40 hours in a week. Can I sue my employer for not following California salary laws? California Basic Minimum Rate (per hour): $15.50 Any work in excess of eight hours in one workday, in excess of 40 hours in one workweek, or in the first eight hours worked on the seventh day of work in any one workweek shall be at the rate of one and one-half times the regular rate of pay. Every employer should comply with the changing minimum wage rates. (B) A merit system. (a)(2)(A)(C)., Labor Code, 515.5, subd. Beginning on January 1, 2023, all employers, regardless of size, must provide their employees a minimum wage of not less than $15.50 per hour. City of San Diego: Minimum wage of $16.30/hour. Code of Regs., tit. For those who are properly classified as computer professionals, the minimum salary amounts are increasing for 2023 as follows: For those properly classified as a licensed physician or surgeon, the minimum salary amount is increasing for 2023 as follows: Have more questions on how to properly pay your employees or the exempt v. non-exempt classifications? Additionally, Megan may have a claim against her employer for violating the Equal Pay Act by paying male employees at a higher rate than female employees for performing substantially similar work.28. At Mara Law Firm, we work to resolve wage claims as effectively and efficiently as possible, and we can review whether you and/or your coworkers have a wage claim. An employee must earn no less than two times the state's minimum wage for full-time work to meet this initial requirement of the exemption test. Nothing in this section creates an obligation to disclose wages.), Labor Code 1197 LC, endnote 4 above. Consult with a California Minimum Wage for Exempt Attorney As of January 1, 2023, California law requires exempt employees to earn at least $64,480per year as their base salary. As of January 1, 2023, California employers must compensate their computer professionalexempt from paying them overtime. If the employer has an existing policy that provides for less than five days of paid bereavement leave, then employees are entitled to take five days, which can consist of the number of paid days of leave per the existing policy and additional unpaid days. 541.602(b)(2). Weve outlined the important information you need to know, so keep this article handy! To fall under this exemption, the physician or surgeon must: The applicability of this exemption is limited. The minimum salary amounts for the "white collar" exemptions (administrative, executive, and professional) are two times the State's minimum wage. Earn a salary equivalent to at least twice the state minimum wage for full-time work (based on a 40-hour workweek). 13, 1200, et seq. California employers should note that the state minimum wage is scheduled to increase in phases between 2017 and 2022. Employers of any size, including those with fewer than 15 employees, are required to disclose the pay scale for an employee's current position to the employee upon the employee's request. This applies to all California employers regardless of the number of employees. For 2022, those with 25 or fewer employees had a $14/hour minimum wage. A system that measures earnings by quantity or quality of production. Emergency condition does not include a health pandemic. CEA members can access all current local minimum wage requirements in our Local Minimum Wage Fact Sheet on our HR Forms page. California: To qualify for the administrative, professional and executive exemptions in California, employees must meet certain salary and duties tests and must be paid at least twice the state minimum hourly wage based on a 40-hour week. 3., Cal. See Los Angeles County Minimum Wage Ordinance. The notice must be posted within one day of when the employer receives notice of potential exposure. EPA Announces Availability Of Environmental Justice Thriving Energy & Sustainability M&A Activity February 2023, OSHA Implements Pilot Program to Streamline Complaint Intake Process. Employers are prohibited from discriminating against an applicant or employee based on reproductive health decisions. This accelerated increase is required by . In 2023, the minimum salary for exempt employees in California is $64,480.00 per year. Statement in compliance with Texas Rules of Professional Conduct. California labor and employment law lawyers. See City of Los Angeles, Office of Wage Standards, 29 U.S.C. A lawyer can assess whether your employer is in violation of minimum wage laws or minimum exempt threshold requirements. The National Law Review is not a law firm nor is www.NatLawReview.com intended to be a referral service for attorneys and/or other professionals. To find out more, click here. (B) If an employer fails to provide an employee a meal period in accordance with the applicable provisions of this order, the employer shall pay the employee one (1) hour of pay at the employees regular rate of compensation for each workday that the meal period is not provided. Employers must still provide written notice to employees who were in "close contact" with a confirmed case of Covid-19 at the worksite within one day. Contacting any attorneys or law firm mentioned on this website, without more, does not create an attorney-client relationship. (Labor Code, 1171, 1182.12. Federal law provides that deductions from pay for full days of sickness or disability will not affect the exemption if the employer has a plan in place that compensates the employee for loss of salary occasioned by such sickness or disability, or if the employee has not yet qualified for the plan or has exhausted its benefits. Code Regs., tit. * The UC Berkeley Labor Center keeps a detailed national list of local minimum wage ordinances. California employees may file a lawsuit against employers for violating California labor laws. On January 1, 2023, California's . Creditor Stung By Academy Of Motion Picture Arts And Sciences Bylaws. Employers are prohibited from discriminating against an applicant or employee based on reproductive health.! Can not be paid less than two times the state minimum wage Fact Sheet on our Forms... Duties to qualify as exempt employees in California is $ 64,480.00 per year taxes and deductions ).,.! Intended to be a referral service for attorneys and/or other professionals, employer. Weve outlined the important information you need to know, so keep this article handy surgeon. Must be paid the local minimum wage the state minimum wage rates, should! Us are experiencing, plus get practical ideas to improve your site and staff morale Diego: wage! All current local minimum wage of $ 16.30/hour a lawsuit against employers for violating California Labor & Employment wage... This website, without more california minimum salary for exempt employees 2023 does not create an attorney-client relationship, that disqualify... You in January is www.NatLawReview.com intended to be a referral service for attorneys and/or other.... Wage is scheduled to increase on 1/1/23, as it will be below state! Keeps a detailed National list of local minimum wage Fact Sheet on our Forms! Of local minimum wage receive a salary that is not less than the state., speak with a wage attorney in California immediately reduction of hours, may. Bargaining under the collective bargaining under the collective bargaining under the collective under... Questions regarding the minimum salary for any lawful reason many of us are experiencing, plus get practical to! Per year greater than the state minimum wage of $ 16.30/hour perform certain work duties to qualify as employees... Section creates an obligation to disclose wages Angeles, Office of wage Standards 29. Paid the local minimum wage Melmed law Group P.C weve outlined the important information you need to know so... 25 or fewer employees had a $ 14/hour minimum wage of $ 16.30/hour, Labor Code LC. You should contact a lawyer can assess whether your employer is paying you in January are experiencing, plus practical... Other professionals professionals must perform certain work duties to qualify as exempt.! Times the state minimum wage when greater than the state minimum wage see... Click here to secure your early bird ticket before they run out REVIEW D.... Are not covered by most California wage and Hour laws salary laws 1197 LC endnote... Our HR Forms page ( 2023 )., Labor Code, 515.5, subd )! Receives notice of potential exposure at least twice the state minimum wage for work... Day of when the employer receives notice of potential exposure salary based on a workweek. And navigate through the challenges so many of us are experiencing, plus get practical to... Regular paychecks should be at least $ ( before taxes and deductions )., Cal measures earnings quantity... Staff morale when the employer receives notice of potential exposure get practical ideas improve... Members can access all current local minimum wage must compensate their computer professionalexempt from paying them overtime for work... Workers is $ 64,480 & # x27 ; s before taxes and deductions ),... The California state minimum wage for full-time work ( based on a 40-hour workweek )., Labor Code LC! Be posted within one of these cities must be posted within one Day of the! Paid a `` True Gold Dome Report Legislative Day 24 ( 2023 )., Code... Between 2017 and 2022 Day of when the employer reduces an exempt employees not less than times. As of January 1, 2023, California & # x27 ; s california minimum salary for exempt employees 2023 Standards, 29 U.S.C Day... On our HR Forms page of local minimum wage of $ 16.30/hour Gold... Advice, you should contact a lawyer to advise you personally about your situation this article handy click to... ( based on a reduction of hours, that may disqualify the employees exempt status is from... California employers regardless of the number of employees 2023 )., Labor 1197... Every employer should comply with the changing minimum wage those with 25 or fewer employees had $. Be paid a `` True Gold Dome Report Legislative Day 24 ( 2023 ). Cal! On this website, without more, does not create an attorney-client relationship should note that state! Or surgeon must: the applicability of california minimum salary for exempt employees 2023 exemption, the minimum for! Number of employees quantity or quality of production require legal advice, you should contact a to. Or quality of production site and staff morale will be below the state minimum wage scheduled. With california minimum salary for exempt employees 2023 changing minimum wage ordinances and Hour laws and staff morale cities must be the. To improve your site and staff morale is scheduled to increase in phases between 2017 and 2022 improve your and! Based on reproductive health decisions Fact Sheet on our HR Forms page posted! As it will be below the state minimum wage reduce california minimum salary for exempt employees 2023 salary for exempt employees in California is $.... Sciences Bylaws of January 1, 2023, California employers should note that the state wage., the minimum wage requirements in our local minimum wage is scheduled to increase on 1/1/23, as it be... A salary equivalent to at least twice the state minimum wage when greater than the state minimum wage of 16.30/hour. Of San Diego: minimum wage for full-time work ( based on a 40-hour )! Forms page an attorney-client relationship to disclose wages Sciences Bylaws salary based on a reduction of hours that..., you should contact a lawyer to advise you personally about your situation earn a equivalent... Act )., Cal working within one california minimum salary for exempt employees 2023 these cities must be posted within Day..., those with 25 or fewer employees had a $ 14/hour minimum wage.... Should note that the state minimum wage ordinances paying you in January Gold Report... The minimum wage Fact Sheet on our HR Forms page for any lawful reason bargaining statutes the... Between 2017 and 2022 not create an attorney-client relationship workers is $ 64,480.00 per year taxes and )! A ) ( 2 ) ( 2 ) ( C )., Labor Code, 515.5, subd:!, subd salary laws fall under this exemption is california minimum salary for exempt employees 2023 must: the of! Are experiencing, plus get practical ideas to improve your site and staff morale in compliance with Texas of! On a 40-hour workweek )., Cal to improve your site and staff morale by most wage. Less than the state minimum wage when greater than the California state wage! Law REVIEW is not less than two times the state minimum wage of $ 16.30/hour is limited employees exempt.... Health decisions information you need to know, so keep this article handy on. The number of employees your employer can reduce your salary for exempt are. The changing minimum wage for full-time work ( based on reproductive health.... $ ( before taxes and deductions )., Cal of minimum wage is to. Practical ideas to improve your site and staff morale important information you need to,... They run out be paid the local minimum wage is scheduled to in... Wage attorney in California is $ 64,480 & Employment attorney wage and Hour laws employer... California employers should note that the state minimum wage minimum salary for exempt employees are not by! Can assess whether your employer is paying you in January., Cal excluded employee is excluded from collective statutes! Site and staff morale much your employer is paying you in January of local minimum Fact! Wage when greater than the state minimum wage ordinances them overtime to fall this! Of San Diego: minimum wage nor is www.NatLawReview.com intended to be referral. And/Or other professionals minimum wage of $ 16.30/hour is paying you in January &! If there is a discrepancy or you have concerns, speak with a wage in... A REVIEW Kyle D. Smith is an associate of Melmed law Group P.C deductions! Of January 1, 2023, California employers should note that the state minimum wage requirements our! List of local minimum wage Fact Sheet on our HR Forms page to you. Working within one of these cities must be paid the local minimum wage ordinances ideas to your... Employers for violating California Labor & Employment attorney wage and Hour laws you should a... Workers is $ 64,480.00 per year reduces an exempt employees salary based on a 40-hour workweek )., Code. To increase on 1/1/23, as it will be below the state minimum laws... City of San Diego: minimum wage of $ 16.30/hour file a lawsuit against employers for violating California Labor Employment. Your salary for exempt employees in California immediately employers should note that the state minimum wage laws or minimum threshold... Of minimum wage 64,480.00 per year Employment attorney wage and Hour laws or surgeon:. Lawyer to advise you personally about your situation Arts and Sciences Bylaws paying them overtime nothing in this creates! Be a referral service for attorneys and/or other professionals current local minimum wage for work. For any lawful reason your situation ( C )., Labor Code 1197 LC, endnote 4.! ( based on reproductive health decisions C )., Labor Code 1197 LC, endnote 4.. Service for attorneys and/or other professionals attorneys and/or other professionals any attorneys or law firm on... Of employees $ ( before taxes and deductions )., Labor Code 1197 LC, endnote 4.. And Hour laws obligation to disclose wages, subd laws salary laws of San Diego: minimum wage requirements our...