Labor/Employment
Feb. 11, 2025
California exempt status explained: Navigating salary and duties tests for employers
Employers in California often struggle with determining salaried exempt status for employees, as it involves both a "salary test" based on the minimum wage and a "duties test" requiring more than 50% of an employee's time be spent on higher-level tasks.
Employers often are confused about the criteria for determining salaried exempt status for their executive or administrative employees. It's a two-part test. There is a "salary test" and a "duties test."
The salary test in California is a formula based on two times the minimum wage. California employers must use the California minimum wage, not the local minimum wage in a particular city that might be higher. At the 2025 statewide minimum wage of $16.50...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$795 for an entire year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In