If an exempt worker`s wage is less than the minimum wage requirement, the employee can no longer be considered exempt. As a non-exempt employee, the employee would be protected by pay and hours of work in California, including overtime pay, meal breaks, and breaks.29 Toni`s boss asks Toni to come on Saturdays to work 4 hours of overtime. Toni was to be compensated with at least one and a half (1 1/2) times the California minimum wage for the 4 hours worked out of the maximum of 40 hours. Toni`s weekly wage for this week should not be less than $644.00 ($40 hours at $14.00 per hour ($560.00), plus 4 hours at $21.00 per hour overtime ($84.00). Megan talks to her employer about her pay cut, while her colleague has received a lot more money. Megan`s employer tells Megan that her salary will be reduced to another $700 a week because she has asked other employees for her wages, which is none of her business. The minimum wage for exempt workers is tied to the California minimum wage. Every year, on January 1, 2017 and 2023, the minimum wage must be increased. This increases the minimum wage requirement for exempt workers each year according to the following schedule:19 The California Equal Pay Act prohibits employers from paying opposite-sex workers lower pay for equal work.

The Pay Equity Act also protects equal pay based on race or ethnic origin.5 However, an employer cannot reduce an employee`s wages for illegal reasons or in retaliation for protected acts. Managers are required to design jobs that fit the scope of a normal workday. We know from many studies that people do not become more productive when they work longer. In fact, it usually has the opposite effect – longer hours of operation – the door to issues of quality, safety responsibility, fatigue, and low morale from teammates and employees. Under the employee rules, exempt employees are entitled to sick leave and statutory holidays. If an employee no longer has sick leave or vacation, the employer can deduct the missed days from the employee`s salary. However, if the employee earns less than $684 per week as a result of deductions, they will lose their leave status and will have to accumulate overtime if they work more than 40 hours per week. Employers cannot deduct the allowance for vacation or days when the employee did not work because the employer did not need it. Working every seven days a week, even if you don`t exceed 40 hours, is eligible for automatic overtime in California. Employees who work the first eight hours on the seventh day of a work week are entitled to one and a half hours and twice as much as for hours worked beyond eight hours. However, section 13(a)(1) of the RSA provides an exemption from minimum wage and overtime pay for workers employed as officers, directors, professionals and bona fide field workers.

Section 13(a)(1) and Section 13(a)(17) also exempt certain IT employees. These exceptions are often referred to as “white collar” or “EAP” exceptions. To be eligible for an exemption, employees must generally pass certain tests related to their duties and be paid on a salary basis of at least $684* per week. Job titles do not determine exceptional status. For an exemption to apply, an employee`s specific duties and salary must meet all requirements of departmental regulations. Non-exempt employees are protected by California minimum wage laws, even if they receive regular pay. It is illegal for employers to pay employees less than minimum wage. If your employer violates minimum wage laws, you can recover money owed to you through a wage and hours lawsuit or a wage and hours class action lawsuit.6 The FLSA does not require employees to be paid for weekend work. Employers generally require that work be done well and on time, and if this requires an employee to work on weekends, this condition must be clearly communicated and agreed upon between the employer and employee at the time of hiring. Whether or not an employee should be paid for overtime depends on whether the employee is entitled to an exemption from overtime laws. Not all employees are exempt from overtime.

If an employee is entitled to an exemption, it means that the employer does not have to pay the employee overtime for hours of work of more than 40 per week. The available exemptions apply to five business lines: specialist, management, administration, IT and field service. These departments share a similar requirement, as the employee must earn at least $455 per week. Each department also has its own requirements to qualify for the paid overtime exemption. Generally, your employer can reduce your salary for any legal reason. There is no specific California labor law that prohibits an employer from reducing an employee`s pay. However, your employer cannot reduce your salary to less than minimum wage. Not all employees are exempt from overtime. If an employee is entitled to an exemption, it means that the employer does not have to pay the employee overtime for hours of work of more than 40 per week.

Wage exemptions are generally based on the amount paid by the employee, not the number of days they work per week. The employee must receive the same rate of pay if he works during the week. At the time of publication in 2021, most employees must earn at least $684 per week to qualify for the federal overtime exemption and minimum wage requirements. Many states have their own rules for determining whether an employee is exempt from overtime, and often wage requirements are tied to the state`s minimum wage. State criteria tend to be harder to meet than federal criteria, reports payroll website ADP, so check your state`s rules. Employees cannot have their wages withheld by their employer if they work less than 40 hours per week, or the employee may be considered non-exempt and entitled to overtime pay if they work more than 40 hours per week. However, if an employee takes personal time (not due to illness or disability), that time may be deducted from the employee`s leave or assigned time. In general, an employer may reduce an exempt employee`s salary as long as the wage is not covered by the minimum wage requirement for exempt workers. The minimum wage requirement for employees in 2022 is $58,240 for employers with 25 or fewer employees and $62,400 for employers with 26 or more employees. An employee (considered an exempt employee*) is a person who receives a fixed salary (salary), regardless of the number of hours they work per week. This means that an employee is paid 40 hours per week, even if they work fewer hours. In addition, overtime pay of one and a half hours is generally not available if more than 40 hours are worked per week.

Workers who meet or exceed the exempt wage standard may still be entitled to overtime, but depending on their duties. The RSSA is valid for one week of employee work. Federal law does not limit the number of hours you need to work in a day, although some state laws do. * Under the Fair Labour Standards Act (FLSA), to be exempt, an employee must (a) receive at least $23,600 per year ($455 per week), (b) be paid on a salary basis, and (c) also perform exempt work duties. However, to qualify as an exempt worker, the employee must meet certain job requirements and earn a minimum wage equal to twice the state minimum wage, based on a 40-hour week.3 Administrative, specialized and computer employees may be paid on a fee-based basis rather than on a salary basis. If the employee receives an agreed sum for a single job, regardless of the time required to perform it, the employee is considered to be paid “on a fee-based basis.” A fee payment is usually paid for a single work and not for a series of commissions that are repeated several times and for which identical payments are made repeatedly. To determine whether the fee payment meets the minimum wage requirement, the test involves taking into account the time worked in the workplace and determining whether the payment would be at least $684* per week if the employee had worked 40 hours. For example, an artist would pay $350 for a painting that took 20 hours to complete to meet the minimum wage requirement, as the rate would be $700 if 40 hours were worked.

Example: After Megan cuts her salary, she talks to her colleague Joe, a man who does essentially the same job.