In California, being paid a salary doesn’t automatically mean you’re exempt from overtime. To legally classify a worker as exempt under California’s white-collar exemptions (executive, administrative, or professional), employers must meet two tests:
- Duties Test: The employee must spend more than 50% of their time performing exempt tasks.
- Salary Test: The employee must be paid a fixed salary of at least twice the state minimum wage for full-time work.
If you’re misclassified, your employer may owe you unpaid overtime, missed meal and rest break premiums, and significant penalties.
🧮 California’s 2025 Minimum Salary Threshold
As of January 1, 2025, California’s statewide minimum wage is $16.50/hour. That means:
$16.50 × 2 × 40 hours/week × 52 weeks = $68,640/year
($5,720/month)
This is the minimum salary required for an employee to be considered exempt from overtime laws under California Labor Code § 515.
🏙️ What If Local Minimum Wage Applied?
While California law uses the state minimum wage—not local rates—for determining exempt status, this has led to inconsistencies for salaried workers in cities with much higher local minimum wages.
If California updated the law to reflect local minimum wage levels, here’s what the minimum exempt salary would look like:
| City or County | Local Min. Wage (July 1, 2025) | Hypothetical Exempt Salary (2× Min. Wage) |
|---|---|---|
| San Francisco | $19.18/hour | $79,334.40/year |
| Berkeley | $19.18/hour | $79,334.40/year |
| Emeryville | $19.90/hour | $82,784.00/year |
| Pasadena | $18.04/hour | $74,732.80/year |
| Los Angeles (City) | $17.87/hour | $74,249.60/year |
| Santa Monica | $17.81/hour | $73,924.80/year |
| Uninc. Los Angeles Co. | $17.81/hour | $73,924.80/year |
| Milpitas | $18.20/hour | $75,712.00/year |
| Sonoma County | $23.15/hour | $96,712.00/year |
⚠️ Important: These are hypothetical salary thresholds. As of 2025, the only binding rule is based on the state minimum wage—$68,640/year.
👩💻 Special Case: Computer Professionals
For computer software professionals under Labor Code § 515.5:
- Hourly minimum: $56.97/hour
- Monthly salary: $9,888.13
- Annual salary: $118,657.43
Check out our blog post for this exemption here. These workers have a separate exemption structure that increases annually based on CPI.
🔎 Why Misclassification Matters
If you earn less than $68,640/year and are classified as exempt, you may be misclassified—regardless of your job title. That means:
- You’re likely owed overtime for any hours worked over 8/day or 40/week
- You’re entitled to meal and rest breaks
- You may recover penalties for inaccurate wage statements, waiting time penalties, and more
📞 Talk to EFLL if You Think You’re Misclassified
At Employees First Labor Law, we’ve helped hundreds of California workers recover what they’re owed after being misclassified. Whether you’re a retail manager, assistant director, field supervisor, or office admin, if you’re salaried and not getting overtime, we’ll help you find out if your rights are being violated.
✅ Free consultations
✅ No upfront fees
✅ Millions recovered for California workers
📩 Schedule a consultation
📞 Call us now to speak with an employment law attorney
