Many people assume that being paid a salary automatically means they’re exempt from overtime pay, but that’s not always true.
California law sets clear limits on who can be exempt. Whether you work in tech, healthcare, retail, cannabis, or finance, knowing about the law that protects salaried employees could make a major difference in your paycheck.
At Seligson Law, we stand up for hardworking employees across California whose rights are too often ignored or misunderstood. Led by attorney Kenneth Seligson, our employment law team helps workers uncover unpaid wages, challenge misclassification, and hold employers accountable under California’s strict labor laws.
If you suspect your employer isn’t paying you fairly, Seligson Law can review your role, clarify your rights, and help you recover what you’ve earned.
Understanding California’s Overtime Rules
California’s wage and hour protections are among the strongest in the nation. Under California Labor Code § 510, most employees are entitled to:
- 1.5× their regular rate of pay for all hours worked over 8 hours in a day or 40 hours in a week
- Double time for all hours worked beyond 12 hours in a day or over 8 hours on the seventh consecutive workday
These rules apply to non-exempt employees, which includes many salaried workers who are often misclassified.
Salary Does Not Equal to Automatic Exemption
Your job duties, not your pay structure, determine whether you’re exempt from overtime. Under California Labor Code § 515, and the Industrial Welfare Commission (IWC) Wage Orders, an employee must meet both of these tests to be exempt:
- Duties Test: Your primary responsibilities must be executive, administrative, or professional, requiring discretion, independent judgment, and management-level decision-making.
- Salary Basis Test: You must earn at least two times the state minimum wage for full-time employment (per California Code of Regulations, Title 8, § 11040).
If either of these requirements isn’t met, you should be classified as non-exempt, and you’re entitled to overtime pay.
5 Common Signs of Employee Misclassification
Misclassification can happen in any industry, whether intentional or due to misunderstanding. You may be misclassified if:
- You perform similar work as hourly employees you “supervise.”
- You must clock in or out despite being salaried.
- You don’t manage two or more full-time employees.
- You spend most of your time on routine or manual tasks, not decision-making.
- You regularly work long hours without additional pay or proper breaks.
Our attorneys at Seligson Law have helped countless employees who went years without realizing they were entitled to overtime. A quick legal review could reveal thousands of dollars in unpaid wages.
Why Employers Misclassify Salaried Employees
Sometimes employers intentionally misclassify workers to save on payroll costs. Other times, outdated job descriptions or misunderstandings lead to violations. Regardless of intent, the result is the same, employees lose money they rightfully earned.
If you suspect misclassification, start documenting your situation. Keep copies of:
- Meal or pay stubs
- Job descriptions
- Work schedules
- Emails or memos about your duties
This information can help your attorney determine whether your employer violated California Labor Code §§ 510, 515, 1194, or other wage provisions.
Claims You Can Recover for Unpaid Overtime and Penalties
If you’ve worked overtime without proper compensation, California law allows you to recover:
- Unpaid wages (the difference between what you were paid and what you earned)
- Interest on those unpaid wages
- Waiting-time penalties under Labor Code § 203, if your employer willfully withheld pay
- Legal fees you incur in the process of bringing your claim under Labor Code § 1194
Employees typically have three years to file a wage claim or lawsuit (Code of Civil Procedure § 338(a)), though some cases may extend to four years under certain wage orders. Acting quickly can protect your right to recover full compensation for overtime and reimbursements.
Let Us Help You Fight For Your Rights – Contact Seligson Law Today
At Seligson Law, we combine deep knowledge of California labor regulations with a genuine commitment to helping everyday workers. Our employee litigation team fights for fairness and transparency in every case.
We believe that every employee deserves to be paid fairly for their time and effort. If you believe your salary has been used to deny you overtime, contact us today at (213) 293-6692 or use our contact form for a confidential consultation.
Frequently Asked Questions About Overtime for Salaried Employees in California:
- What does California law say about salaried employees and overtime? Under California Labor Code § 510, salaried employees can still qualify for overtime unless they meet both the duties and salary tests for exemption.
- Who is eligible to recover unpaid overtime in California? Any non-exempt employee, including many salaried workers, can recover unpaid overtime if they were misclassified or underpaid.
- When should I file an overtime claim? You generally have three years from the date of the violation to file under Code of Civil Procedure § 338(a). It’s best to act as soon as possible to preserve evidence.
- Why do employers misclassify workers? Employers may misclassify employees to reduce overtime costs or due to outdated job roles. Regardless of intent, it’s illegal under Labor Code § 1194 to deny rightful overtime pay.
- Where can I file a claim? You can file with the California Labor Commissioner’s Office (DLSE) or through a civil court action with the help of an employment attorney.
- How can Seligson Law help me? Our team, led by Kenneth Seligson, will evaluate your job duties, calculate your unpaid wages, and guide you through every step, whether through negotiation or formal litigation, to recover what you’re owed.
