In 2022, the minimum salary for a California exempt employee was $62,400 per year at employers with 26 or more workers and $58,240 per year at employers with 25 or fewer. Those were the floor salaries required for the executive, administrative, and professional overtime exemptions. Falling short by any amount pushed the worker into non-exempt status, regardless of job title.
The Two 2022 Salary Floors
California Labor Code Section 515(a) ties the exempt salary threshold to the state minimum wage rather than a fixed dollar figure. In 2022, that produced two tiers:
- 26 or more employees: $62,400 per year, or $5,200 per month.
- 25 or fewer employees: $58,240 per year, or $4,853.33 per month.
The split existed because California’s minimum wage phase-in reached $15.00 per hour for larger employers a year before smaller employers caught up. Larger employers hit $15.00 on January 1, 2022, while smaller employers were still at $14.00.1Department of Industrial Relations. Minimum Wage Frequently Asked Questions
These are floors, not targets. An otherwise-qualified worker paid $62,399 at a 30-person company failed the threshold outright. There is no partial credit. The employee would be reclassified as non-exempt and entitled to overtime at one and a half times the regular rate for every hour past eight in a workday or 40 in a workweek.2Department of Industrial Relations. Overtime
Where the Numbers Come From
California requires that an exempt employee earn a monthly salary of at least twice the state minimum wage for full-time work, defined as 40 hours per week.3California Legislative Information. California Labor Code LAB 515 The 2022 math worked out as follows:
- Larger employers: $15.00 × 2 = $30.00 per hour × 2,080 hours = $62,400
- Smaller employers: $14.00 × 2 = $28.00 per hour × 2,080 hours = $58,240
The 2,080 comes from 40 hours per week over 52 weeks. Because the formula is pegged to the minimum wage, the exempt threshold moves whenever the minimum wage moves.
Salary Alone Doesn’t Make Someone Exempt
Hitting the salary floor is only half the test. California also requires that more than half of the employee’s actual working time be spent on duties that qualify as executive, administrative, or professional.4Department of Industrial Relations. Wage Order 5-02 Wages, Hours and Working Conditions in the Public Housekeeping Industry This is stricter than the federal “primary duty” test, which doesn’t require tracking the percentage of time.
Each of the three main categories has its own duties requirement:
- Executive: The employee manages a recognized department or business unit and regularly directs the work of at least two other full-time employees.
- Administrative: The employee performs office or non-manual work directly related to management policies or general business operations, and regularly exercises independent judgment.
- Professional: The work requires advanced knowledge in a recognized field typically acquired through prolonged, specialized education, or the employee holds a required license.
All three require the regular use of discretion and independent judgment.3California Legislative Information. California Labor Code LAB 515 A store manager earning well above the threshold but spending 60 percent of the day on the register and stocking shelves doesn’t meet the executive exemption, even with occasional scheduling duties. Titles don’t settle the question. What the person actually does during the workday is what counts.
Separate Rules for Computer Professionals and Physicians
Two categories have their own salary rules that don’t follow the doubling formula.
Computer Software Professionals
Labor Code Section 515.5 exempts certain computer professionals who earn at least a specified hourly rate or equivalent annual salary and perform qualifying work like systems analysis, software design, or programming. The statute sets a base of $36.00 per hour and $75,000 annually, adjusted each January 1 by the percentage change in the California Consumer Price Index.5California Legislative Information. California Code, Labor Code LAB 515.5 By 2022, CPI adjustments had pushed the applicable thresholds above those base amounts.
The exemption doesn’t cover trainees, entry-level employees still learning the field, hardware technicians, or people who merely use software as a tool, such as drafters working in CAD programs. The qualifying employee must work independently on intellectual or creative tasks involving systems analysis, programming, or software engineering.
Licensed Physicians and Surgeons
Labor Code Section 515.6 exempts licensed physicians and surgeons who earn at least a specified hourly rate, adjusted annually by CPI from a base of $55.00 per hour.6California Legislative Information. California Labor Code 515.6 The physician must be primarily engaged in work requiring the medical license. Medical interns, residents, and physicians covered by a collective bargaining agreement don’t qualify.
Paying the Salary the Wrong Way Can Void the Exemption
Even when the salary amount and duties test are both met, how the salary is paid matters. The salary basis test requires that exempt employees receive a fixed, predetermined amount each pay period that doesn’t vary based on hours worked or output. If the employee does any work during a week, they generally receive the full week’s salary.
Deductions trip employers up most often. Under California law, if an exempt employee works any part of a day, the employer cannot dock the salary for a partial-day absence.7Labor Commissioner’s Office. FAQs on Laws Enforced by the California Labor Commissioner’s Office Someone who leaves three hours early for an appointment but answered emails that morning is owed a full day’s pay. The employer can draw from the vacation or PTO bank to cover the time while still paying the full salary.
The narrow exception involves intermittent leave under the federal Family and Medical Leave Act or the California Family Rights Act. Within approved intermittent leave, the employer may pay only for hours actually worked that day. Outside that situation, improper deductions can destroy the exemption retroactively, converting the employee to non-exempt and triggering back pay obligations for all overtime worked during the period of non-compliance.
What a Misclassified Employee Can Recover
If you were classified as exempt in 2022 but paid below the applicable threshold, the misclassification was automatic the moment the salary came in short. The main recovery is back pay for unpaid overtime, calculated under California’s daily and weekly overtime rules.2Department of Industrial Relations. Overtime Interest and attorney’s fees are typically added on top.
If you’ve already left the job and final wages weren’t paid on time, waiting time penalties can reach up to 30 calendar days of your daily pay rate.8California Legislative Information. California Code, Labor Code LAB 203 Inaccurate wage statements tied to the misclassification can add penalties up to $4,000 per employee when the violation is knowing and intentional, plus attorney’s fees and costs.9California Legislative Information. California Labor Code LAB 226
Filing a Wage Claim
Wage claims go to the California Labor Commissioner’s Office and can be filed online, by email, by mail, or in person at a local office.10Division of Labor Standards Enforcement (DLSE). How to File a Wage Claim After filing, the office typically schedules a settlement conference, and unresolved disputes move to a hearing where both sides present evidence.
Deadlines are hard. Unpaid overtime claims must be filed within three years of the violation. Claims based on a written employment contract carry a four-year window.11Department of Industrial Relations. Recover Your Unpaid Wages With the California Labor Commissioner’s Office For 2022 violations, that three-year clock is already partway down. Pay stubs, time records, calendars, and any documentation of actual hours worked will carry the claim.