Many California workers believe that receiving a salary means no overtime. This is one of the most common and costly misconceptions in wage law. Most salaried workers in California are not exempt from overtime.
The Exemption Test
To be exempt from overtime, a salaried employee must: (1) earn at least twice the state minimum wage on an annual basis, (2) primarily perform executive, administrative, or professional duties as defined by the ICA, and (3) exercise discretion and independent judgment with respect to matters of significance. All three prongs must be met.
‘Primarily’ means more than 50% of working time. An employee who is called a manager but spends 60% of their time doing the same work as hourly employees does not primarily perform exempt duties and is not exempt. Courts look at what the employee actually does — not their job title or salary structure. Misclassified salaried employees who worked overtime are owed that overtime for the full three-year lookback period.
The California Wage Theft Recovery System gives workers the exact tools and templates to document violations, calculate what they’re owed, and file the right claims — without paying an attorney to get started. Request your free evaluation here.
California Wage Theft Recovery System 
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