Are Your Exempt Employees Still Exempt?

By Deborah Petito |

Just a reminder that the minimum wage in California increased to $10/hour on January 1, 2016.   Some cities and counties, including San Francisco and San Jose, have set higher minimum wage rates and employers should check their local jurisdiction.  The California Labor Commissioner has the authority to enforce the local minimum wage rates effective January 1st.  Also, keep in mind that exempt employees must make a minimum of two times the minimum wage.  Hence, exempt employees must make a minimum of $41,600 per year.  The minimum annual salary will be greater if the local minimum wage is higher.  If an exempt employee’s salary is less than $41,600, it does not matter what their job duties and responsibilities are, they will not be considered exempt in California and must be paid overtime and provided rest and meal breaks.

This is a good time to review your exempt positions to ensure that they meet the California and federal requirements for exemption, starting with the salaries.

Thank you for joining us on ClarkTalk!  We look forward to seeing you again on this forum.  Please note that the views expressed in the above blog post do not constitute legal advice and are not intended to substitute the need for an attorney to represent your interests relating to the subject matter covered by the blog.  You should certainly consult legal counsel of your choice when considering this or any other employment issue.  If you wish to consult with the author of this post or another attorney at Clark & Trevithick, please contact Debbie Petito or Leonard Brazil by email at or telephonically by calling the author at (213) 629-5700.

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