Salaried employees typically receive a fixed amount of pay regularly, usually monthly. They are exempt from overtime pay regulations and are expected to complete their assigned tasks regardless of the number of hours worked.
Misclassification of employees can attract serious legal consequences, so it’s important for employers to remain compliant. That said, employers should seek expert guidance from an experienced attorney for California salaried employee laws.
Laws For Salaried Employees in California
Here are ten important laws every salaried employee in California should be aware of:
Minimum Salary Threshold
California law requires that salaried employees must earn at least twice the state minimum wage for full-time employment. As of 2024, this equates to a minimum annual salary of $62,400 for employers with 26 or more employees and $58,240 for smaller employers.
Overtime Pay
While salaried employees are generally exempt from overtime pay, they’re eligible for overtime compensation if they work more than 8 hours in a workday or 40 hours in a workweek, unless they fall under specific exemptions.
Meal and Rest Breaks
Salaried employees are entitled to meal and rest breaks as mandated by California labor laws. They must receive a 30-minute meal break for shifts lasting more than 5 hours and a 10-minute rest break for every 4 hours worked.
Equal Pay
California’s Equal Pay Act prohibits employers from paying salaried employees of different genders differently for substantially similar work.
Anti-Discrimination Laws
Salaried employees are protected from discrimination based on characteristics such as race, gender, age, disability, sexual orientation, and religion, under California’s Fair Employment and Housing Act (FEHA).
Family and Medical Leave
The California Family Rights Act (CFRA) provides eligible salaried employees with up to 12 weeks of unpaid leave for family and medical reasons, including childbirth, adoption, and serious health conditions.
Paid Sick Leave
California requires employers to provide salaried employees with paid sick leave, accrued at a rate of one hour for every 30 hours worked, up to a maximum of 48 hours per year.
Whistleblower Protection
Salaried employees are protected from retaliation for reporting violations of state or federal laws, health and safety concerns, or unethical behavior.
Workers’ Compensation
Employers must provide salaried employees with workers’ compensation insurance coverage. This coverage offers benefits for work-related injuries or illnesses.
Privacy Rights
Salaried employees have the right to privacy in the workplace, including protection against unreasonable searches of personal belongings or electronic communications.
Distinctions Between Salaried Employees and Non-Salaried Workers
Here are 3 distinctions between salaried and non-salaried employees:
- Salaried employees receive a fixed salary regardless of the number of hours worked, while non-salaried workers are typically paid hourly.
- Salaried employees may be exempt from overtime pay, whereas non-salaried workers are usually eligible for overtime compensation.
- Salaried employees may have more benefits and job security, while non-salaried workers have more flexibility in their schedules.
What to Look For When Hiring Salaried Employees
Here are 10 factors to consider when hiring salaried employees:
Job Responsibilities
Assess whether the employee’s job description aligns with their actual duties and responsibilities. This ensures that they are fulfilling the expectations set forth by their position.
Work Quality
Evaluate the quality of the work produced by the employee. This includes accuracy, attention to detail, and adherence to company standards.
Productivity
Measure the employee’s efficiency and output in completing tasks and projects within established deadlines. This reflects their ability to manage their time effectively and contribute to the overall productivity of the organization.
Initiative and Innovation
Consider the employee’s ability to take initiative, propose new ideas, and implement innovative solutions to challenges. This demonstrates their creativity and potential for driving positive change within the company.
Communication Skills
Assess the employee’s proficiency in verbal and written communication. Effective communication is essential for collaborating with colleagues, conveying ideas clearly, and resolving conflicts.
Leadership Abilities
Determine whether the employee demonstrates leadership qualities, such as the ability to motivate others, delegate tasks, and provide guidance to team members.
Adaptability
Evaluate how well the employee responds to changes in the work environment, whether it be new procedures, technologies, or organizational restructuring. Adaptability is crucial for maintaining performance in dynamic workplaces.
Problem-Solving Skills
Assess the employee’s ability to identify and analyze problems, develop solutions, and implement effective strategies to overcome challenges.
Professionalism
Consider the employee’s conduct and demeanor in the workplace, including their:
- Punctuality
- Reliability, and
- Adherence to company policies and ethical standards.
Continuous Learning and Development
Evaluate the employee’s commitment to ongoing learning and professional development. This includes participation in training programs, pursuing additional certifications or qualifications, and staying updated on industry trends and best practices.
Both employers and employees need to understand these laws. These legal protections ensure employees are treated fairly and receive the rights and benefits they are entitled to under the law.
