Can Salary Employees Receive Overtime in California?

If you’re a salaried employee in California, chances are you’ve asked yourself this question at some point: “Am I entitled to overtime pay?” It’s a fair question and an incredibly common one. At West Coast Employment Lawyers, we hear from hardworking Californians every day who feel overworked and underpaid, unsure if they’re being treated fairly under state labor laws.

Here’s the truth: Just because you’re salaried doesn’t mean you’re not eligible for overtime. In fact, many salaried employees in California must legally be paid overtime, depending on their job duties and how much they earn. But employers often misclassify workers, sometimes intentionally, sometimes out of ignorance and deny them the wages they’re owed.

What Does It Mean to Be a Salaried Employee?

Being salaried means you receive a set amount of pay on a regular basis, usually weekly, bi-weekly, or monthly, regardless of the number of hours you actually work. This sounds straightforward, but when it comes to overtime, that fixed salary can cause a lot of confusion. In fact, it is a very common misconception that being paid a salary automatically means you’re exempt from overtime pay, when in reality it is only one type of salaried employee who are not entitled to overtime. 

Exempt vs. Non-Exempt Employees

Salaried employees fall into one of two categories, Exempt and Non-exempt. Exempt employees are excluded from overtime protections, but to legally qualify as exempt, you must meet specific criteria:

1. You must be paid a fixed salary
2. You must earn at least twice the minimum wage for a full-time job
3. You must perform exempt job duties, such as executive, professional, or administrative tasks

On the other hand, Non-exempt employees are covered by California’s wage and hour laws, including overtime. This means you can be salaried and non-exempt if you don’t meet the salary minimum, job duties, or spend too much time doing non-exempt tasks. To put it simply, the difference doesn’t depend on how you’re paid, but it depends more on what kind of work you do and how much you earn and that classification decides whether you’re owed overtime.

Minimum Salary Requirements for Exemption (2026)

To be considered exempt in California in 2026, your salary must be at least: $70,304 per year ($16.90×2×2080 hours). If you earn less than this, you’re automatically non-exempt, even if your job duties would otherwise qualify. With that in mind, if your employer is paying you, say, $60,000 annually and calling you “exempt,” they’re violating the state law and are not appropriately paying you. 

The Duties Test in California

In order for a salaried worker to become exempt, they must meet the duties test under California law. These are strict standards that look at the actual work you do, not just your job title or description. There are three main categories of exempt employees:

1. Executive Exemption
   
   • Primary duty is managing the business or a department
   • Regularly supervises two or more employees
   • Has hiring/firing authority or significant input
     
2. Administrative Exemption
   
   • Performs non-manual work related to business operations
   • Exercises independent judgment and discretion
   • Not involved in production or customer service
     
3. Professional Exemption
   
   • Must be licensed or certified (e.g., doctors, lawyers, engineers)
   • Performs work requiring advanced knowledge
   • Relies on independent judgment

If you don’t spend at least 50% of your time on exempt tasks, you likely don’t qualify as exempt and should be paid overtime.

Industries Most Affected by Misclassification

Some industries in California are notorious for misclassifying salaried workers as exempt. These include:

• Retail & Sales– Assistant managers, key holders
• Tech– IT specialists, engineers without degrees
• Healthcare– Medical assistants, RNs, technicians
• Education– Teachers without credentials, aides
• Hospitality– Shift supervisors, salaried hosts

If you’re working long hours in one of these fields and not receiving overtime, your job classification needs a closer look.

Penalties for Employers Who Misclassify

Employers who misclassify employees can face serious consequences, including payment of all back wages and unpaid overtime, interest on those unpaid wages, liquidated damages (double the amount owed), civil penalties and fines, and even payment of your attorney’s fees and legal costs. At West Coast Employment Lawyers, we’ve recovered millions in unpaid wages for salaried workers misclassified as exempt. Employers think they can get away with it until they’re hit with a lawsuit.

How to Know If You’re Being Misclassified

If you believe if you are being misclassified and are not sure, ask yourself the following questions:

• Do I work more than 8 hours a day or 40 hours a week without overtime?
• Do I make less than $66,560 a year?
• Do I spend most of my time doing non-exempt tasks?
• Is my title “manager,” but I don’t manage anyone?
• Has my employer told me I’m “exempt” just because I’m salaried?

If you answered yes to any of these, you could be misclassified and are owed serious back pay.

Steps to Take If You’re Owed Overtime Pay

1. Document everything from tracking your hours, duties, and communications.
2. Speak with HR (if safe) because some issues are unintentional and can be resolved.
3. File a claim with the California Labor Commissioner.
4. Contact a qualified employment attorney.
5. Act quickly, because you only have 3 years to claim unpaid wages, don’t wait.

Protecting Your Rights as a Salaried Worker

Don’t let a job title or paycheck format rob you of the wages you’ve earned. You work hard and the law says you should be paid fairly for every hour of it.

At West Coast Employment Lawyers, we know how to fight back. If you suspect you’re being misclassified or denied overtime, reach out to our experienced team (213) 927-3700 or fill out our online contact form. We offer free consultations, and you don’t pay unless we win.