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Sep14

Minimum Wage in California

Hi!! Thanks for your immediate response regarding my inquiry about exempt and non-exempt employees last week. You made it clear to me that as soon as you get paid hourly, you are considered a “non-exempt” employee no matter what position you hold. Am I right? My next question now is this, if you are managing a motel business and your “duties and responsibilities” fall under the executive exemption of the California IWC, is there any regulation that states the wages for people performing executive duties? Or the minimum wage refers to everybody, from manual laborers to a company executive, and the amount of someones salary depends on the employers discretion?

Thanks

Hi again! You are absolutely correct — any employee who is paid hourly is non-exempt and entitled to overtime, regardless of the employees duties.

No, there is no federal or California law that mandates a certain hourly rate for an employee who is engaged in management or executive duties. The California minimum wage of $8.00 per hour applies. You are correct that the minimum wage applies to everyone, from the CEO to a dishwasher. Higher wages are a matter to be negotiated between the employer and employee, by mutual agreement.

An exempt management employee in California must be paid a salary of at least $640 per week, however, we already know that this employee is not exempt because he is being paid hourly.

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This entry was posted on Tuesday, September 14th, 2010 at 1:19 pm and is filed under
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