What jobs are exempt in California?

Who are the exempt employees in California?

Under California law, all employees are presumed to be non-exempt, and if a claim is filed, the employer has the burden of proving the employee is exempt. An exempt employee is so-called because they are exempt from benefits, such as overtime and wage and hour requirements. There are strict conditions around the exempt status, and the employer must pay attention to what they are exempt from and what conditions still apply. Employment lawyers or HR professionals can advise on this.

1. California Executive Exemption

Executives and managers are exempt if they meet all of these requirements:

The employee is responsible for managing a department of the company.
They manage at least two employees.
They have the authority to fire or hire employees or their recommendations for recruiting, or promotion is given weight.
The employee is able to and regularly exercise independent judgement and discretion in their duties.
Their primary duties meet the exemption test. These are the duties that make up 50% or more of their daily duties.
The employee’s monthly salary is at least two times the full-time state minimum wage.

2. Administrative Exemption California

Administrative professionals must meet all of the following requirements to be exempt:

50% or more of their duties must be administrative in nature, such as general business operations or management policies.
The employee is able to regularly exercise independent judgement and discretion in duties which are significant to the business operations.
They perform their duties with only general supervision, and their duties require specific technical knowledge or experience.
Their salary is at least twice the minimum wage.

3. Computer Professional Exemption

IT professionals must meet all of the following requirements to be exempt:

The primary duties of the employee are creative or intellectual in nature.
Their primary duties are one of the following:
- Applying systems analysis procedures and techniques
- Testing, modifying, documenting, or creating computer programs
- Designing, analysing, creating, developing, or modifying computer programs or systems.
The employee is highly skilled in the practical and theoretical application of specialised IT knowledge.
The hourly rate or annual salary must meet the DLSR’s minimum threshold.

4. Inside Sales Exemption

Inside sales employees must meet all the following requirements to be exempt:

Employee’s wages or salary must be at least 1.5 times California’s minimum wage.
At least 50% of the employee’s compensation is commission.

The inside sales exemption only applies to overtime, and the employee must still receive benefits such as meal and rest breaks, minimum wage, and time recording.

5. Outside Sales Exemption

Outside sales employees must meet all the following requirements to be exempt:

The employee must be 18 years old or over.
50% or more of their work time must be performed away from the employer’s workplace.
The employee’s main duties must involve selling service, contracts for products, tangible items, or facility use.

CA Bereavement Leave 2025: AB 1949 Rules, Paid vs Unpaid Time, and Employer Compliance

California AB 1949 requires employers to provide up to five days of bereavement leave for eligible employees in 2025. It covers eligibility, paid versus unpaid time, documentation rules, employer obligations, and compliance risks for California businesses.

Pre-Employment Drug Test California: Laws, Requirements, and Employer Guidelines

California employers can require pre-employment drug testing under strict regulations, with exceptions for safety-sensitive roles and federal compliance. Workers have rights regarding confidentiality, fairness, and contesting results, and businesses must update policies for California’s new marijuana laws.

Does California Drug Test for Weed? AB 2188 Employment Rules

California AB 2188 limits employer drug testing for non-psychoactive marijuana use and permits impairment and active THC testing. Beginning January 2024, most employees gain workplace protections, though safety-sensitive and federally regulated positions remain exempt.

Make Up Time in California: Rules, Overtime Exceptions, and Employee Rights

Make-up time in California lets non-exempt employees offset missed hours without losing pay under defined legal rules. This guide covers overtime exceptions, employee rights, and employer duties for make-up time requests under state labor laws.

California Tipped Minimum Wage: 2025 Rates, Laws, and Employee Rights

California servers must receive the full state minimum wage of $16.50 per hour in 2025, plus any earned tips. Employers cannot take tips, pay below the minimum wage, or violate California Labor Code protections for tipped workers.

Regular Rate of Pay in California: Overtime, Meal and Rest Break Premiums, and Employer Compliance

California employers must calculate overtime, meal, and rest break premiums using the regular rate of pay, including bonuses and incentives. Miscalculating regular rates can result in lawsuits, penalties, and compliance risks, making accurate payroll practices vital for businesses across the state.

Overtime Tax Rate California: Overtime Pay and Taxes in 2025

Overtime pay in California is taxed like regular income, with brackets based on total annual earnings. For 2025–2028, a temporary deduction lets workers write off up to $12,500 ($25,000 joint) of qualifying overtime.

California Labor Code 5814: Penalties for Delayed or Unreasonable Workers’ Compensation Payments

California Labor Code 5814 outlines penalties for delayed workers’ compensation, protecting injured employees from financial hardship caused by late payments. Workers may claim up to 25 percent penalties for unreasonable delays, ensuring timely disability benefits, medical coverage, and settlement reimbursements.

California Labor Code 202: Final Paycheck Rules When Employees Quit

California Labor Code 202 requires employers to pay final wages on time when employees resign, with timing based on notice given. Workers may also claim unused vacation pay, request retirement fund deposits, or seek penalties for delayed payments.

California Labor Code 1174: Employer Timekeeping and Recordkeeping Requirements

California Labor Code 1174 outlines employer timekeeping and recordkeeping duties, allowing electronic or paper systems when records are indelible. Keep records in California, preserve them at least three years, and provide accessible copies to workers and authorities.

Labor Code 1194 California: Overtime and Minimum Wage Rights, and Remedies

California Labor Code 1194 protects workers seeking unpaid minimum wage and overtime, providing legal remedies, interest, and reasonable attorney’s fees. Employees can file lawsuits or arbitration claims to recover wages, enforce rights, and safeguard against unlawful employer practices in California.

California Labor Code Section 2810.3: Employer Liability for Labor Contractor Violations

California Labor Code Section 2810.3 makes client employers liable for labor contractor wage violations and missing workers’ compensation coverage. Reduce risk through careful vetting, clear contracts, payroll monitoring, and tight compliance with statutory duties and narrow exemptions.

California Labor Code 201: Final Paycheck Rules, Employee Rights, and Employer Obligations

California Labor Code 201 requires immediate final paychecks at discharge, covering unpaid wages, unused vacation, and earned bonuses. Employees may seek penalties and file claims if payment is delayed or withheld.

Labor Code 510: California Overtime Pay, Exceptions, and Calculations

California Labor Code 510 outlines overtime pay rules, exemptions, and calculation methods, protecting employees from unfair wage practices and misclassification. This guide explains daily and weekly overtime, special worker protections, and the legal steps available if overtime pay is denied.

Meal Premium California: Laws, Penalties, and Employer Compliance

California meal premium rules require employers to provide compliant breaks or face fines, lawsuits, and costly penalties. Use clear policies, precise tracking, and regular reviews to maintain compliance and avoid financial or reputational harm.

Employee Record Retention by State: Guide for Employers

State-by-state employee record retention guide covering payroll, unemployment insurance, workers’ compensation, child labor, discrimination, and access. Get clear timelines and required details for Alabama to Wyoming so employers meet audits, claims, and compliance duties.

How Much Notice Does an Employer Have to Give for a Schedule Change in California?

California employers must follow state and local rules on schedule changes, including notice periods, overtime, and reporting time pay. This guide explains meal breaks, overtime, predictable scheduling, local city ordinances, and penalties for violating California labor laws.

Employment Mediation: Process, Benefits, Preparation, and What to Expect

Employment mediation offers a faster, cost-effective alternative to litigation for resolving workplace disputes. Get the process, benefits, preparation steps, what to expect, possible outcomes, and mediator roles.

What Is Fair Chance Hiring? Meaning, Benefits, and How It Works for Employers

Fair chance hiring gives candidates with criminal records fair consideration, helping employers access loyal, diverse, and skilled talent. It strengthens compliance, lowers turnover, and helps build high performance teams without compromising workplace safety.

California Labor Code Section 204: Employee Rights When Employers Pay Late

Late wage payments in California can trigger penalties under Labor Code Section 204, protecting employees from repeated payroll delays. Workers have legal options including waiting time penalties, wage claims, and attorney assistance to secure timely pay.

California Equal Pay Act: Differences from Federal Law, Employer Duties, and Employee Protections

California’s Equal Pay Act expands protections beyond federal law, covering pay disparities by sex, race, and ethnicity. Employers must justify wage differences with valid factors; employees gain retaliation safeguards, filing options, and potential damages.

I-9 Compliance: Employer Rules, Penalties, and Best Practices

I-9 compliance helps employers verify work authorization, meet federal rules, and avoid costly fines, penalties, and legal issues. Use proper documentation, audits, E-Verify, and training to maintain compliance and reduce employment verification risks.

California Labor Code: Divisions, Laws, and Employee Rights Overview

California Labor Code overview covering divisions, employee rights, workplace safety, workers’ compensation, and enforcement across key industries. Trace major milestones, landmark cases, and updates that shape employer obligations and protections for California workers today.

Are Non-Solicitation Agreements Enforceable in California? Exceptions and Legal Insights

Non-solicitation agreements in California are mostly unenforceable, except when tied to trade secrets, business sales, or partnership dissolutions. This article outlines key exceptions, legal challenges, and how courts determine when limited restrictions may stand under state law.

California Labor Code Section 226: Wage Statement Requirements & Penalties

California Labor Code Section 226 sets strict paystub requirements and exposes employers to lawsuits, PAGA penalties, and fees. Review wage statements for all nine items; third party payroll services do not shield companies from compliance mistakes.

Do You Have to Sign a Write-Up at Work? Employee Rights and Employer Policies Explained

Employees often ask if they must sign a workplace write-up, and the answer depends on labor laws and company policies. This guide explains employee rights, employer practices, and options for responding when faced with disciplinary write-ups.

ABC Test California: AB 5 Exceptions, Borello Factors, and Worker Status

AB 5 reshaped California worker classification with the ABC test, Borello factors, and multiple exemptions impacting industries and licensed professionals. This guide covers independent contractor rules, key exceptions, and legal consequences for misclassification under California employment law.

How Long to Keep Employee Files: Record Retention Laws, Timelines, and Best Practices

Keep employee records compliant with federal and state retention laws to protect your business from fines, lawsuits, and compliance issues. Establish clear policies, digitize securely, and retain files for proper timelines to ensure efficiency, privacy, and legal protection.

Separation of Employment: State Notice Requirements, Termination Letters, and Compliance Guide

State separation laws vary, requiring employers to issue termination notices on time to reduce penalties and compliance risk. This guide covers state notice requirements, termination letters, unemployment benefit notifications, and practical steps for multi-state compliance.

Labor Code Section 2810.5: CA Hiring and Wage Notice Guide

California Labor Code Section 2810.5 outlines hiring and wage notice requirements employers must follow to avoid penalties and lawsuits. Employers must provide detailed written notices, comply with minimum wage laws, and use official forms to remain compliant.

See all articles: Business | Corporate | Employment

1,093