What is the overtime threshold for salaried employees?
In California, the overtime threshold for salaried employees is based on the type of business and whether or not the employee is exempt from overtime pay. Under the California Labor Code, any employee who works in an executive, administrative, or professional capacity is exempt from overtime pay if their wages exceed a certain amount. For employees who work in executive, administrative, or professional capacity, their weekly pay must exceed both the minimum wage and a certain threshold to be exempt from overtime pay. In California, the current minimum wage rate is $13.00/hour. As of January 1, 2021, the overtime threshold for salaried employees is $950/week or $49,920/year. In other words, if an employee works in an executive, administrative, or professional capacity and their wages exceed $950/week or $49,920/year, they are considered exempt from overtime pay. However, if an employee’s salary is less than the overtime threshold, they are eligible for overtime pay if they work more than 8 hours/day or 40 hours/week. It is important to understand the overtime threshold for salaried employees in California, as it can affect an employer’s total payroll costs. Employers should also be aware of the updated overtime threshold and any changes to wage and hour laws to ensure their business is compliant and their employees are being paid properly.
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