To qualify as an exempt employee, an employee must be “primarily engaged in the duties that meet the test of the exemption” and “earns a monthly salary equivalent to no less than two times the state minimum wage for full-time employment.” Labor Code section 515. This forms the two part test the employees must meet
Speaking with some clients, I sense their overwhelming confusion in setting up employment 
policies in California. While it can be a daunting task, I remind them that the key is to approach it in a systematic process, and once the system is in place, compliance can be very easy. While there are many issues employers
You’ve set up a successful company and begin hiring employees. To be a successful operator in California, a company’s management needs to be familiar with the critical legal concepts in order to successfully navigate California’s complex employment laws. You never wanted to go to law school, but time to hit the, ahem, books (or the
1. CEOs and founders need to be involved in the hiring process.
This is simply something too important for a company to leave to other people. Sam Altman, of Y Combinator, wrote:
The vast majority of founders don’t spend nearly enough time hiring. After you figure out your vision and get product-market fit,
I apologize for the long post in advance, but I’ve been receiving many questions about exempt vs. non-exempt classification of employees lately. This article is the first in a series of articles to help employers tread through this technical area, hopefully in a manner that makes it at least somewhat easier for employers to understand.
Here is a short video regarding some items California employers should consider about the minimum wage increase taking effect July 1, 2014.
//www.youtube.com/embed/fvwcOiltDHw
For more information about the minimum wage increase:
Five issues California employers should review before the minimum wage increases July 1, 2014
Co
me July 1, 2014, California’s minimum wage will increase from $8 per hour to $9 per hour for all workers. The minimum wage will increase again to $10 per hour on July 1, 2016. Other than starting to work with their payroll provider to ensure that all hours worked as of July 1 will
With Governor Brown’s signing of the bill raising California’s minimum wage to $10.00 per hour by January 2016, there are a few new considerations this triggers for California employers. This quick video discusses the increase in guaranteed salary employers must pay in order to for employees to qualify as exempt.
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2012 Requirement |
Source |
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California Minimum Wage
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$8.00 per hour (unchanged from previous years) |
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San Francisco Minimum Wage
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$10.24 per hour |
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Computer Professional Exempt Salary Rate
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$38.89 or annual salary of not less than $81,026.25 for |