Q: I am a salaried administrative employee in California. My employer is a small business (fewer than 10 employees).
My annual salary is $60,000, with a year end bonus typically between $6,000 and $15,000. Does this compensation meet the minimum requirement for annual salary under California State Law?
My annual bonus is entirely discretionary. The minimum wage in my area is $16 per hour.
It would appear, based on the two answers I've received, that my pay does not meet the minimum salary requirement. Nor has it, for years.
A:
In California, as of January 1, 2024, the minimum salary requirement for exempt administrative employees depends on the size of the employer and the applicable minimum wage.
For employers with 25 or fewer employees, the minimum annual salary for exempt administrative employees as of January 1, 2024, is $66,560. This is calculated as follows:
- Minimum wage: $16.00 per hour
- Minimum annual salary: $16.00 × 2 × 2,080 hours = $66,560
In your case, with an employer having fewer than 10 employees and an annual salary of $60,000, your base salary does not meet the minimum requirement of $66,560 for exempt administrative employees in California as of January 1, 2024.
However, if your guaranteed annual compensation, including base salary and non-discretionary bonuses, meets or exceeds the minimum annual salary requirement, you may still qualify as an exempt employee. If your year-end bonus is guaranteed and non-discretionary, and your total annual compensation (base salary + bonus) is at least $66,560, then you would meet the minimum salary requirement for exempt status.
1 user found this answer helpful
A:
Please note that the minimum wage is not the same all over California. Many cities and counties have set higher minimum wages than the state standard. Depending on where you work, take that minimum wage, multiply it by 8, double it, and that is the daily minimum wage your employer should minimally pay you to properly characterize you as exempt.
Good luck to you.
1 user found this answer helpful
A:
Under Labor Code 515(a), to be exempt executive, administrative, and professional employees must earn "a monthly salary equivalent to no less than two times the STATE minimum wage for full-time employment."
The 2024 California state minimum wage is $16.00/hour, which means you must earn at least $32 per hour for 49 hours per week or a monthly salary of over $5,546.67 per month.
The exemption test applies per pay period, so an annual bonus pulling you over the required annual salary of $66,560 would only make you potentially exempt during the pay period you received the bonus.
1 user found this answer helpful
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