In California, most workers get overtime after eight hours in a day or 40 in a week, but several groups are exempt from overtime pay: certain salaried executive, administrative, and professional employees; highly paid computer software professionals; outside salespeople and some commissioned inside salespeople; union workers covered by qualifying contracts; close family members employed by a parent, spouse, or child; certain regulated commercial drivers; and personal attendants (who get a modified schedule rather than full exemption). Each category has strict requirements, and job titles alone never decide the question.
Salaried Executive, Administrative, and Professional Employees
The best-known exemptions cover white-collar roles. To qualify, an employee has to pass both a salary test and a duties test. Fail either one and the exemption doesn’t apply, no matter what the job title says.
The Salary Floor
An exempt white-collar employee has to earn a monthly salary equal to at least twice the state minimum wage for full-time (40-hour) work. California’s minimum wage rose to $16.90 per hour on January 1, 2026, which puts the exempt salary floor at $70,304 per year.1California Department of Industrial Relations. California’s Minimum Wage Set to Increase to $16.90 Per Hour The salary has to be a fixed, predetermined amount paid regardless of hours worked or quality of output. If an employer docks pay based on hours missed or work quality, the employee probably isn’t properly exempt.
The Duties Test
California requires that an exempt employee be “primarily engaged” in exempt-level work, meaning more than half of actual working time.2California Legislative Information. California Code LAB 515 – Exemptions From Overtime What the employee actually does matters, not what the job description says.
- The executive exemption covers employees whose main work is managing the business or a recognized department, who regularly direct at least two full-time employees, and who have genuine authority over hiring, firing, or promotion decisions.
- The administrative exemption covers employees who primarily perform office or non-manual work directly tied to management or general business operations and who regularly use independent judgment on decisions that actually matter to the business. Processing routine paperwork under established procedures doesn’t count.
- The professional exemption covers learned professionals who hold licenses or advanced degrees in fields like law, medicine, accounting, or engineering, and creative professionals doing work requiring invention, imagination, or original talent in a recognized artistic field.
Most exemption disputes land on the duties test. An employee titled “Manager” who spends 60% of the day stocking shelves or serving customers isn’t performing exempt work for the majority of the time and shouldn’t be classified as exempt.
Computer Software Professionals
California has a separate exemption for highly skilled computer software professionals under Labor Code section 515.5, with its own pay thresholds that adjust each year based on the California Consumer Price Index.3California Legislative Information. California Code LAB 515.5 – Exemption for Computer Software Employees
For 2026, the employee must earn at least $58.85 per hour, or an annual salary of at least $122,573.13 (paid monthly at no less than $10,214.44).4California Department of Industrial Relations. Overtime Exemption for Computer Software Employees The work has to be intellectual or creative and require discretion and independent judgment. Qualifying duties include systems analysis, software design, development, testing, or modification of computer programs based on user or system specifications.
The employee also has to be highly skilled and proficient in specialized computer science knowledge. An IT help desk technician following standard troubleshooting scripts won’t qualify, even if paid above the threshold. The exemption also doesn’t cover employees who manufacture or repair computer hardware.
Outside and Commissioned Inside Salespeople
California recognizes two sales exemptions, and they work very differently.
Outside Salespeople
An outside salesperson who customarily spends more than half of working time away from the employer’s premises making sales or obtaining orders is exempt from overtime, minimum wage, and meal and rest break requirements.5California Department of Industrial Relations. Exemptions From the Overtime Laws This is one of California’s broadest exemptions because it removes the employee from the wage orders entirely. There’s no minimum salary requirement. The question is always where the employee actually spends time, not what the job posting intends.
Commissioned Inside Salespeople
Certain inside salespeople paid primarily on commission are exempt from overtime only, not from minimum wage or break requirements. Two conditions both have to be met: total earnings must exceed 1.5 times the minimum wage for every hour worked, and more than half of the employee’s compensation must come from commissions.5California Department of Industrial Relations. Exemptions From the Overtime Laws The exemption currently applies only to employees covered by Industrial Welfare Commission Wage Orders 4 (professional, technical, clerical, and mechanical occupations) and 7 (mercantile industry). It doesn’t cover all commissioned sales roles.
Union Employees Under a Qualifying Collective Bargaining Agreement
Union employees covered by a qualifying collective bargaining agreement can be exempt from California’s daily and alternative workweek overtime rules under Labor Code section 514. The agreement has to expressly address wages, hours of work, and working conditions. It also has to provide premium pay rates for all overtime hours and a regular hourly rate at least 30% above the state minimum wage.6California Legislative Information. California Code LAB 514 – Exemption From Sections 510 and 511 With the 2026 minimum wage at $16.90, that CBA rate has to be at least $21.97 per hour. A collective bargaining agreement that doesn’t hit all of these marks doesn’t trigger the exemption, even if the union and employer both believe it does.
Family Members Employed by a Parent, Spouse, or Child
Individuals employed by a parent, spouse, or child are exempt from the IWC wage orders, including overtime requirements.5California Department of Industrial Relations. Exemptions From the Overtime Laws The critical detail: this works only when the employer is the individual family member. If a parent owns a corporation or LLC and that entity employs the child, the employer is the business entity, not the parent, and the family exemption doesn’t apply.
Regulated Commercial Drivers
Certain commercial drivers are exempt from California’s daily overtime rules when their hours are already regulated by federal or state safety authorities. This generally applies to drivers whose work falls under the U.S. Department of Transportation’s hours-of-service regulations or Title 13 of the California Code of Regulations.5California Department of Industrial Relations. Exemptions From the Overtime Laws The exemption covers drivers in interstate commerce and those operating heavy commercial vehicles or transporting hazardous materials. These drivers are still subject to the overtime protections built into their applicable federal or state safety regulations.
Personal Attendants in Private Homes
Personal attendants who work in private homes have a modified overtime threshold rather than a full exemption. They earn overtime after nine hours in a day or 45 hours in a week, instead of the standard eight-hour and 40-hour triggers.7California Department of Industrial Relations. The Domestic Worker Bill of Rights FAQ Domestic workers who aren’t personal attendants generally receive standard overtime protections. Family members of the employer, casual babysitters, and certain care providers under state programs are excluded from these rules entirely.
Who Used to Be Exempt but Isn’t Anymore
Agricultural workers in California were historically exempt from overtime, but a multi-year phase-in under AB 1066 brought them to full parity with other workers. As of January 1, 2025, all agricultural employers, regardless of size, must pay overtime after eight hours in a day and 40 hours in a week, plus double time after 12 hours in a day.8California Department of Industrial Relations. Overtime for Agricultural Workers Agricultural employees also receive overtime for the first eight hours on a seventh consecutive workday and double time beyond eight hours on that day. The old exemption no longer exists.
What to Do If You’ve Been Misclassified
Employers carry the burden of proving that an exemption applies. If you’re classified as exempt but your actual duties or pay don’t meet the legal requirements, you may be owed unpaid overtime going back up to three years. You can file a wage claim with the Labor Commissioner’s Office, which will investigate and typically schedule a settlement conference between you and your employer. If that doesn’t resolve the issue, a hearing officer reviews the evidence and issues a decision.9California Department of Industrial Relations. How to File a Wage Claim
The deadline for filing an overtime wage claim is three years from the date of the violation. Beyond back pay, a successful claim can also recover interest on unpaid wages, waiting time penalties if your employer failed to pay final wages promptly after you left, and an order requiring the employer to cover attorney’s fees and costs.