Exempt vs. Non-Exempt Classification: FAQs
The proper classification of employees as exempt or non-exempt is often at the root of wage and hour litigation, and there are many common misunderstandings about the subject. Below are some of the questions SLG attorneys most frequently receive about employee classification: Q: Are all salaried employees exempt? A: No! Although many use the word “salaried” as synonymous to “exempt,” the analysis is significantly more complicated. Most California exemptions require employees to be paid at least double minimum wage on a salary basis and to be primarily engaged in exempt duties, which are specifically defined for each exemption. Some exemptions have a higher salary threshold, such as certain physicians and computer professionals, and there are different rules for some commissioned salespeople. Q: Do California employers need to worry about the U.S. Department of Labor’s recently released Overtime Rule? A: Mostly likely no. Under the new Overtime Rule, effective July 1, 2024, the minimum ...