Am I Exempt From Overtime in California?
Many salaried workers think they're not owed overtime. They're wrong.
California has the STRICTEST exemption rules in the country. Just because you're salaried doesn't mean you're exempt.
Take This 2-Minute Test
Answer these questions honestly to find out if you're truly exempt.
Where do you work in California?
(Different cities have different salary thresholds)
Why this matters: California requires exempt employees to earn at least 2× the local minimum wage. Major cities have higher minimums.
SALARY TEST: Are you paid at least $68,640/year?
Quick Salary Calculator:
Now you know! Is it above the threshold?
Why this matters: This is a hard legal requirement. If you earn below this threshold, your employer MUST pay you overtime - no matter your job title.
DUTIES TEST: Does management take up MORE than 50% of your time?
The 51% Rule is CRITICAL:
You must spend MORE than half your workweek on management. If you spend most of your time doing the same work as hourly employees, you are NOT exempt.
You spend the MAJORITY of your workweek on:
- Interviewing, hiring, training employees
- Creating work schedules and assignments
- Directing and supervising the work of others
- Disciplining or terminating employees
EXAMPLES:
✓ EXEMPT: Store Manager who spends 6 hrs/day on hiring, scheduling, supervising. 2 hrs/day on sales floor.
✗ NOT EXEMPT: "Assistant Manager" who spends 2 hrs/day scheduling, 6 hrs/day working register and stocking.
The title doesn't matter - the actual time breakdown does.
Do you regularly supervise 2+ full-time employees?
(Or equivalent: 4 part-time, or a combination totaling 80+ hours/week of supervised work)
Why this matters: Under California law, "executive exemption" requires supervising at least 2 full-time employees. Supervising 1 person, or only part-timers totaling less than 80 hrs/week, does NOT qualify. Many employers give "supervisor" titles without meeting this threshold.
Do you have authority to hire/fire?
(Or your recommendations are given significant weight in hiring/firing decisions)
Why this matters: True executives have meaningful authority over personnel. If someone else makes all hiring/firing decisions and you just follow orders, you likely don't qualify for executive exemption.
PROFESSIONAL TEST: Does your work require advanced knowledge?
TRUE professionals (exempt):
- Licensed doctors, dentists, lawyers
- Engineers, architects (with degree)
- Certified K-12 teachers
NOT professionals (not exempt):
- Cooks, mechanics, skilled tradespeople
- "IT professionals" without degrees
- Most healthcare workers below RN level
You Are NOT Exempt From Overtime
Based on your answers, your employer should have paid you 1.5× for:
- • Hours over 8 in a day
- • Hours over 40 in a week
- • First 8 hours on 7th consecutive workday
If you worked 50 hours/week for 3 years at $30/hour:
10 OT hours/week × 156 weeks × $15 premium = $23,400+ owed
Your Exemption Status Is Unclear
Based on your answers, you're in a gray area. This is common.
HERE'S THE PROBLEM:
California employers LOVE the gray area. They give you a title like "Lead" or "Supervisor," pay you just above the threshold, and hope you don't question it. Meanwhile, you're working 50+ hours with no overtime.
COMMON "UNCLEAR" SCENARIOS:
- • "I'm called Manager but spend 60% of time doing regular work" → Likely NOT exempt (fails 51% test)
- • "I supervise people but can't hire/fire without approval" → Likely NOT exempt (no real authority)
- • "I'm salaried at exactly the minimum threshold" → Check if you were ALWAYS above threshold
THE TEST: Use our calculator to see what you'd be owed IF you were misclassified. If the number is $10,000+, it's worth pursuing. When in doubt, file the claim. Worst case: Labor Commissioner says you're exempt. Best case: You recover $15,000+.
You Appear To Be Properly Exempt
Based on your answers:
- • Salary above threshold
- • Spend 50%+ time on exempt duties
- • Meet legal exemption tests
However: Exemption law is complex. You may still be owed money for missed meal breaks (even exempt employees get these), waiting time penalties, or illegal salary deductions.
Check for Other ViolationsCommon Misclassification Examples
"Assistant Manager" at Retail Store
Salary: $55,000 (below threshold) | Time: 20% managing, 80% cashier work
NOT EXEMPT - fails salary + duties test
"Team Lead" at Warehouse
Salary: $72,000 (above threshold) | Time: 30% scheduling, 70% picking orders
NOT EXEMPT - fails 51% duties test
"Office Manager" at Small Business
Salary: $68,000 | Duties: Answers phones, files papers, orders supplies
NOT EXEMPT - routine work, no discretion
Store Manager at Large Retail Chain
Salary: $85,000 | Time: 80% hiring, training, scheduling, discipline
PROPERLY EXEMPT
What If I Was Misclassified?
Misclassification damages are often SUBSTANTIAL because of higher base rates, more hours, and longer periods.
"Assistant Manager" making $62,400/year: