

By: Douglas Wade, Attorney
Email | Call (800) 484-4610
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.
Learn more about: Business | Corporate | Employment


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

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

Labor Code Section 2810.5: CA Hiring and Wage Notice Guide

California Sick Leave Law 2025: Employee Rights, Accrual Rules, and Local Ordinances

What is Comp Time at Work? Definition, Legal Rules, and How it Differs from Overtime

California Vacation Law Update 2025: Changes to Paid Leave, PFL Use, and Workplace Policies

California Wage Statement Rules: What Must Be Shown and What to Do If Your Pay Stub Has Errors

What Paid Holidays Are Mandatory in California? Employer Requirements, Exemptions, and Federal Worker Pay Rules

California Employee Rights: Workplace Discrimination, Wages, and Legal Protections

SB 616: Key Changes to California Paid Sick Leave Law Every Employer Should Know

Onboarding Paperwork Checklist: 10 Key Documents Every Employer Needs for New Hires

Resentment Examples at Work: 5 Ways Workplace Tension Takes Hold

How Many Hours Can You Work at 15? State-by-State Guide to Teen Work Limits in the U.S.

CA Exempt Salary 2025: Minimum Wage and Exemption Updates for California Employers

How Long to Keep Payroll Records in California: Employer Rules for 2025

California Fair Chance Act: Updates Employers Need to Know About Criminal History Rules

Breaks in California: Detailed Guide to Rest and Meal Break Rules for Employers

California Labor Code 1198.5: Employee Rights to Personnel Records and Employer Compliance Guide

Reporting Time Pay in California: Worker Rights, Employer Rules, and How to Calculate It

California Wrongful Termination Checklist: A Full Guide to Employee Rights and Legal Protections

California Labor Code 203: Employer Guide to Penalties, Defenses, and Compliance Measures

When Is a Doctor’s Note Required for Work in California? Employee Rights, Sick Leave Rules, and Employer Policies

California Labor Code 2699 Reform: What Employers Should Know About the 2024 PAGA Amendments

California Termination Laws Final Pay: What Employees Should Know About Last Paychecks and Penalties

California Workplace Violence Prevention Plan: Employer Responsibilities

Is It Illegal to Discuss Wages at Work? What Employers and Employees Should Know

How Long to Keep Pay Stubs and Payroll Records: IRS, FLSA, and Legal Rules Business Owners Should Know

California Mileage Rate 2025: IRS Figure, Reimbursement Policy, and Employer Instructions

California Labor Code Section 2802: Employer Reimbursement Rules for Work Expenses
See all articles: Business | Corporate | Employment