I have received a job offer as an exempt employee for a non-profit organization in California. 2 questions…1) Can the terms of my job be for less than a 40 hour week with the salary prorated to reflect that. 2) What is the minimum salary as an exempt employee?
Hi Betty,
Thank you for your questions. It’s important to understand how a “salary” is defined in California for the purposes of exempt employees. A salary is a fixed minimum payment of wages that is paid regardless of hours worked or the amount or quality of work performed.
Employees who are paid an hourly wage usually cannot be classified as exempt employees—even if their work consists primarily of job duties that would otherwise be considered exempt. A salary that is tied to the number of hours worked, with no minimum guarantee, is treated as the payment of hourly wages and will not satisfy the exemption’s salary requirement.
If the salary varies depending on the number of hours you are expected to work, it is not a true “salary” for the purposes of how exempt employees are classified in California.
Assuming that your pay actually meets the legal definition of a “salary,” the minimum salary will depend on the type of exemption you fall under. In most cases, the minimum salary must be at least twice the state minimum wage for full-time employment.
In 2018, people that work for an employer with 25 or fewer employees are entitled to be paid a minimum wage of at least $10.50 per hour. People that work for an employer with more than 25 employees are entitled to be paid a minimum wage of at least $11.00 per hour.
This means that the minimum salary for exempt employees in 2018 is either:
- $3,640.00 per month (or $43,680.00 annually) if the employee works for an employer of 25 or fewer people, or
- $3,813.33 per month (or $45,760.00 annually) if the employee works for an employer of more than 25 people.
These numbers are calculated by doubling the applicable minimum wage, multiplying that amount by 40 hours per week, the result of which is then multiplied by 52 weeks and divided by 12 months. This calculation gives us a monthly salary that is equal to twice the state minimum wage for full-time employment.
Importantly, California’s minimum wage is set to increase every year on January 1st until 2023. This means that the minimum salary for exempt employees in California will also be increasing annually.
I hope this information helps. If you would like to learn more about the salary requirement for exempt employees in California, check out our article on that topic: The Minimum Salary Requirement for Exempt Employees in California.
Please remember that this information does not constitute legal advice and should not be relied on. Nor does it create an attorney-client relationship.
I wish you the best of luck in your situation!