California labor laws for salaried employees. Compa...
- California labor laws for salaried employees. Companies must learn the rules pertaining to exempt and non-exempt employees to avoid penalties or lawsuits. 5, which sets rules for when and how final wages must be paid to employees “engaged in the production or Learn the key differences between exempt and nonexempt employees in California. Additional resources are available at CA. Below is a breakdown of the most important California labor law updates now in effect as of January 1, 2026. ) State & Federal Labor Law Compliance Simplified OutSolve’s Labor Law Center® provides labor law posters and compliance services to small, single location businesses as well as large, multiple location corporations. State law requires that most California workers be paid at least the minimum wage. Exempt and Nonexempt Employees – Explanation of the two classifications of workers by the California Chamber of Commerce. Under California law, exempt employees generally have a white-collar job, get paid a salary rather than hourly, and are not entitled to wage/hour protections. State law requires that most California workers be paid the minimum wage. * The UC Berkeley Labor Center keeps a detailed national list of local minimum wage ordinances. 44, and the minimum annual salary exemption from $118,657. Understand salaried employee rights, exemptions, wage protections, and California labor law distinctions. Salaried employees in California are entitled to overtime wages unless they fall under the exempt status as defined by federal and state laws, or unless they are exempt under the California Labor Code. California Paycheck Calculator For Salary & Hourly Payment – Free online tool from Forbes. Paid Sick Leave (PSL) is a permanent law in California that requires employers to provide paid time off to workers for treatment, diagnosis or preventative care for themselves, a family member or a designated person. Frequently Asked Questions about exemption and pay California’s Minimum Wage to Increase to $16. 03. The notice will be updated annually. We’ll address topics such as work hours, overtime rules, and employee rights and explore how using time California labor laws, including California labor laws 2026, impact the daily lives of employees and employers in California. What are Final Paycheck Laws? Final paycheck laws are state and federal regulations that govern when and how employers must compensate employees for their final wages after employment ends. An employer cannot ask a non-exempt salaried employee to work more than the maximum hours without providing overtime compensation. The change in the minimum wage also affects the minimum salary an employee must earn to meet one part of the overtime exemption test. 13 to $10,214. 5 days ago · February 16, 2026 California Labor Laws [2026]: Comprehensive Guide for Employers and HR What Are California Labor Laws? California labor laws constitute a rigorous regulatory framework that frequently surpasses federal standards, covering wages, workplace safety, and employee rights for all employers in the state. Depending on the status, the state requires overtime for over 40 hours of work a week, meal and rest breaks, and sick leave. . 05 per hour worked in June 2025, the U. The Equal Employment Opportunity Commission (EEOC) partners with Tribal Employment Rights Offices (TEROs) to protect the employment rights of Native Americans and Alaska Natives. THE CALIFORNIA LAW ABOUT EMPLOYER’S RETALIATION Subject to the California labor law, businesses face great penalties should they decide to strike back at salaried employees who pursue their lawful wages and other compensations. California labor laws include a higher minimum salary than the federal standard. 85, the minimum monthly salary exemption from $9,888. The California Department of Industrial Commissions administers the state's wage and hour laws for private and public employers. Learn about compensation, benefits, overtime eligibility, and key considerations when hiring salaried employees in California. California continues to lead the nation in employee protection laws — and 2026 brings several important labor law changes that every employer, HR professional, and business owner must understand to remain compliant. For California employees, it’s crucial to stay informed of your new rights and protections. What if I’m a salaried employee instead of hourly? Salaried employees still get overtime protection in California. Our employment law attorneys explain whether salary employees get paid overtime in California. Revisions included increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism for updating The Office of Wage Standards (OWS) is the designated agency tasked with administering and enforcing the City's minimum wage and labor standards, which includes paid sick leave, fair hiring practices for private Employers, and a stable and predictable work week for retail employees in the City. Time spent traveling during normal work hours is considered compensable work time. This is the official home page of Marin County, California. California has a special final pay statute aimed at this reality: Labor Code section 201. Salaried non-exempt employees are entitled to overtime pay, rest and meal breaks, and other wage protections under state labor laws. A judge appointed during the Clinton Administration has granted the Trump Administration’s request for a preliminary injunction blocking California from enforcing a law endangering the safety of federal law enforcement officers. California Workplace Know Your Rights Act (SB 294) On or before February 1, 2026, and each year after that, an employer must provide employees a required workplace rights notice. This guide will help you understand the key aspects of California labor law when applied to salaried employees. Under California Labor Code Section 515, employees must meet specific salary thresholds and job duties tests to qualify for overtime exemptions. gov: The official portal for Santa Clara County, CA which provides essential services, information, and resources for County residents. Here is a list of City and County minimum wages in California maintained by UC Berkeley. Mandatory Paid Family and Medical Leave SantaClaraCounty. If the employer fails to pay what is undisputed, the "good faith" defense will be defeated whatever the outcome of the disputed wages. 90 per hour on January 1, 2026. 5 (a) (4), the department has adjusted the computer software employee’s minimum hourly rate of pay exemption from $56. $35,152 per year. 50 to $16. If you’re new to salaried work, you should know your rights. States are also increasingly offering paid parental leave for public employees as a recruitment and retention tool in a competitive labor market. In accordance with Labor Code Section 515. Occupational profile application National (HTML) (XLSX) State (HTML) (XLSX) We will keep this table regularly updated, but be sure to double-check with your state’s department of labor in case the laws have changed. Residents of California have many questions that affect them every day regarding California labor laws from minimum wage rates, overtime, wage payments, vacation and sick leave, child labor, meal and rest breaks, and more. According to the California salary and wage laws, all employers Are nonexempt salaried employees entitled to overtime pay in California? Learn how overtime is calculated and your legal rights. 90 per hour on January 1, 2026 Oakland —The California Labor Commissioner’s Office (LCO) reminds employers that the state minimum wage will increase from $16. For more information, see the Notice Regarding Publication of Colorado Occupational Employment and Wage Statistics. California laws and requirements for salaried employees, from wage payment to break and leave laws, and key employee/employer rights. Our federal, state, OSHA, and industry-specific labor law posters are designed to meet business needs and compliance requirements. If you’re classified as salaried but don’t meet specific criteria (you must have certain duties and earn a minimum amount), you’re entitled to overtime. However, this is not always the case. Curious about your salary rights in California? Learn about the state’s salary laws so you know your rights and what to do if an employer violates them. 97 to $58. Learn your protections as a nonexempt employee and what to do if your employer violates them. Workers paid less than the minimum wage are urged to contact the Labor Commissioner’s Office in their area to file a wage claim. gov/LAfires for Californians impacted by the Los Angeles Fires. Example: Toni works in a call center with about 20 other Labor Code Section 203 and Title 8, California Code of Regulations, Section 13520 Even if there is a dispute, the employer must pay, without requiring a release, whatever wages are due and not in dispute. Read more about this here. 13 effective January 1, 2026, reflecting the 3. California State Board of Equalization Homepage Disaster Relief Information - Property owners affected by California Fires or other California Disasters may be eligible for property tax relief, please refer to our Disaster Relief webpage for more information. 5, which sets rules for when and how final wages must be paid to employees “engaged in the production or Additionally, some states have created voluntary paid leave models for employers to opt into through private insurers. Exempt Employees Exempt employees are those to whom wage and hour laws (including overtime pay) do not apply. Employers cannot demote, terminate or otherwise harass workers for seeking their fair pay. California’s strict labor and employment laws apply to individuals performing work in the State, even if their Company is located outside of California. LETF members conduct joint inspections, share information and resources, and partner with local agencies – to ensure employees are paid properly and have safe work conditions and honest, law-abiding businesses have the opportunity for healthy competition. 43 to $122,573. Industrial Welfare Commission Wage Orders – Compilation of labor laws by the California Department of Industrial Relations. Additionally, some states have created voluntary paid leave models for employers to opt into through private insurers. 90 per hour in January 2026 Workplace law compliance was a wild ride in 2025, and now it’s time to catch our breath and prepare for what’s next. The Labor Commissioner provides templates that can be used and meet the requirements of the law. Navigating California labor laws for salaried employees can be challenging, especially if you want to stay compliant with state labor laws and keep your workforce happy. (See tables 1 and 2. California Overtime Laws for Salaried Employees: Salaried employees in California are entitled to overtime pay unless they fall under certain exemptions. These laws cover a wide range of topics, including minimum wage, overtime California labor law classifies workers who get a salary as exempt or nonexempt. For example, if an employee covered by a qualifying CBA is denied paid sick leave because they could not find a replacement worker, the employer would be in violation of California’s paid sick leave law and the employee could seek remedies for these violations by filing a claim with the Labor Commissioner’s Office. This provision applies only if the travel is within FS-2026-01, January 2026 — This Fact Sheet provides answers to frequently asked questions about the new deduction for qualified overtime compensation, such as who may be eligible to claim the deduction, including federal employees, and where to find supplemental information on eligibility and other rules. The Department of Industrial Relations does not monitor or verify this list but includes it here as a reference for the public: UC Berkeley Labor Center Inventory of US City and County Minimum Wage Ordinances Every year, a slew of important new labor laws take effect and 2024 is no different. Not providing eligible workers with these rights can result in a lawsuit against the employer. Members of the Labor Enforcement Task Force (LETF): These laws ensure that non-exempt salaried employees receive proper overtime compensation. 02, while benefit costs averaged $15. Here’s a breakdown of the 9 key laws that affect you in 2024 and beyond: Staying Current with Employment Labor Laws in 2025 Employment labor laws — covering areas such as minimum wage, discrimination protections, unemployment insurance, paid sick leave, family leave, and workplace safety — are frequently updated and vary significantly across states, counties, and cities. Time spent in home-to-work travel by an employee in an employer-provided vehicle, or in activities performed by an employee that are incidental to the use of the vehicle for commuting, generally is not "hours worked" and, therefore, does not have to be paid. Learn how to avoid misclassification and know your rights. And while a new income tax deduction may be available to some employees who work overtime, only a limited portion of federally required overtime EMPLOYER COSTS FOR EMPLOYEE COMPENSATION - JUNE 2025 Employer costs for employee compensation for civilian workers averaged $48. California has several laws in place to protect the rights of salaried employees. Occupational Employment and Wage Statistics (OEWS) Tables May 2024 May 2024 OEWS data for Colorado and its areas are now available. , to update and revise the regulations issued under section 13 (a) (1) of the Fair Labor Standards Act implementing the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional employees. 3% increase in the California The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting most full-time and part-time workers in the private sector and in federal, state, and local governments. HR Differences in CA What's Unique in California? Unique Employment and Labor Laws for California Employees Many employers are located in other states but have employees who work in California. More than 50 new workplace laws will kick in on January 1 in more than half the states across the country, and several “Big Beautiful Bill” provisions taking effect in 2026 will impact employers nationwide. As non-exempt employees, salaried employees who work over the maximum number of hours should be paid based on California overtime laws. State of California Labor Commissioner's Office Overtime Overtime In California, the general overtime provisions are that a nonexempt employee 18 years of age or older, or any minor employee 16 or 17 years of age who is not required by law to attend school and is not otherwise prohibited by law from engaging in the subject work, shall not be employed more than eight hours in any workday or California’s minimum wage set to increase to $16. Understand your rights as a salaried employee in California, from classification and exemption to overtime, deductions, and legal action, California State Board of Equalization Homepage Disaster Relief Information - Property owners affected by California Fires or other California Disasters may be eligible for property tax relief, please refer to our Disaster Relief webpage for more information. What other federal laws may apply to workers affected by pregnancy, childbirth, or related medical conditions? Other laws that apply to employees or applicants affected by pregnancy, childbirth, or related medical conditions, include: Title VII (enforced by the EEOC), which: A new federal law enacted last year provides a tax benefit to employees who receive overtime pay – but calling it a “No Tax on Overtime” law is a bit of misnomer. WHD State Labor Laws Minimum Length of Meal Period Required under State Law for Adult Employees in Private Sector 1 Access a list of state-by-state HR compliance changes for 2026, including employee leave, AI, background checks, wage and hour requirements and more. California has some of the most employee-friendly labor laws in the country, including specific regulations for salaried employees. Sep 26, 2025 · Exempt employees must earn at least twice the state minimum wage for full-time work and primarily perform executive, administrative, or professional duties. S. Whether you are an employer or an employee, understanding these laws is crucial to ensure compliance and protect worker rights. For starters, OT pay remains taxable and subject to withholding rules. Learn California wage timelines, penalties for late pay, employee rights, and legal steps if your employer fails to pay on time under 2026 labor laws. Access tools, checklists, and expert insights to ensure proper classification. FS-2025-03, July 14, 2025 — Provisions from the One, Big, Beautiful Bill Act, which was signed into law on July 4, 2025. Wages and salaries averaged $33. Bureau of Labor Statistics reported today. Most employees in California must be paid at least the minimum wage per hour, with some exceptions explained in the FAQs below. Many salaried employees should actually get overtime but don’t. lnlzm, zofn, ee0uoy, 3tbr, n3pze, cko0v, apewsh, k9fz, hfdlt, bebbg,