Who is Exempt From Overtime in California?

By James Steel

Dec 17 — 2024

Who is Exempt From Overtime in California?

In California, several categories of employees are exempt from the state’s overtime laws, meaning they do not have to be paid overtime rates for hours worked beyond the standard 8 hours per day or 40 hours per week.

Here are some of the key exemptions based on the available information:

1.Executive, Administrative, and Professional Employees:
Executive Exemption: Employees must have a salary of at least twice the state minimum wage for full-time employment, must primarily manage the business or a department, have the authority to hire or fire, and exercise independent judgment.
Administrative Exemption: Similar to executive exemption but involves duties directly related to management or general business operations, with the exercise of discretion and independent judgment.
Professional Exemption: Includes occupations like law, medicine, dentistry, optometry, architecture, engineering, teaching, and accounting, where the employee must perform work requiring advanced knowledge or creativity.

2.Computer Professionals: These employees can be exempt if they are paid at least a minimum amount set by law and perform specific duties related to computer systems analysis, programming, or software engineering.

3.Outside Salespersons: Employees must regularly work more than half their time away from the employer’s place of business, selling tangible or intangible items.

4.Certain Commissioned Employees: In retail, professional, technical, or clerical occupations, if their earnings exceed one-and-a-half times the minimum wage and commissions make up more than half their income.

5.Union Employees: If covered by a collective bargaining agreement that explicitly provides for wages, hours, and working conditions, and the agreement includes premium wage rates for all overtime hours and a regular hourly rate at least 30% above the state minimum wage.

6.Specific Occupational Exemptions: Includes licensed physicians and surgeons under certain conditions, some agricultural workers, certain truck drivers (interstate or hazardous materials), and employees in industries like skiing during active months.

7.Employees in Certain Nonprofits: Personal attendants in nonprofit organizations are exempt from daily overtime but may receive overtime for weekly hours over 40 or after six days of work in a week.

8.Other Exemptions: Live-in employees, certain resident managers at old-age facilities, and employees directly responsible for children under 18 in 24-hour residential care might also be exempt under specific conditions.

Remember, these exemptions must be applied strictly, and any ambiguity is generally resolved in favor of the employee’s right to overtime. Employers must ensure employees meet all criteria for exemption, or they are liable for overtime pay. If there’s doubt about an employee’s exemption status, they should typically be treated as non-exempt.

Reference: 

Labor Code Section 515: This section allows the Industrial Welfare Commission to establish exemptions from overtime requirements for executive, administrative, and professional employees

Labor Code Section 515.5: Specifically exempts computer software professionals from overtime if they are engaged in high-level computer-related duties such as systems analysis or software design. To qualify for this exemption, they must earn a specific hourly, monthly, or yearly salary set by California law.

Labor Code Section 515.6: Exempts licensed physicians and surgeons from overtime requirements provided they are primarily engaged in duties requiring licensure and their hourly rate of pay is equal to or greater than a certain threshold adjusted annually for inflation.
 
Labor Code Section 204.3: While not creating an exemption, this section allows exempt employees to receive compensating time off in lieu of overtime compensation under specific conditions, including that the time off is at a rate not less than one and one-half hours for each overtime hour worked.

Get the Help You Need.

Contact Us
Employment Issue

Recent Articles

Archived Articles

SHARE POST

By James Steel

I am an 30 year advocate in employee rights and California labor law. I am an author for several publications and websites which all deal with labor and employment law.

Get the Help You Need.

Contact Us
Employment Issue

Recent Articles

Archived Articles
Please wait while the policy is loaded. If it does not load, please click here to view the policy.
Please wait while the policy is loaded. If it does not load, please click here to view the policy.
Please wait while the policy is loaded. If it does not load, please click here to view the policy.
Please wait while the policy is loaded. If it does not load, please click here to view the policy.