Exempt Vs. Non-Exempt Employees
Have you ever wondered why some coworkers work different hours or get overtime pay while others don’t? You’re not alone. In California, understanding whether you’re classified as an exempt or non-exempt employee is key because this classification directly affects your wages, eligibility for overtime, meal and rest breaks, and other legal protections.
Exempt employees are typically salaried workers who are excluded from overtime pay requirements under certain conditions—often because they perform executive, administrative, or professional duties and meet specific salary thresholds. Non-exempt employees, on the other hand, are usually hourly workers who are entitled to overtime pay at 1.5 times their regular rate for hours worked beyond 8 in a day or 40 in a week.
Knowing the difference can help you spot—and avoid—misclassification by your employer.
What Does Exempt Employment Mean?
The term “exempt” in this case means that a worker is not subject to certain wage and hour laws. This includes the right to overtime pay and mandatory meal and rest breaks under California law.
To be classified as exempt, an employee must pass both a duties test and a salary threshold:
- Duties Test: The employee must mainly perform exempt tasks, like executive, administrative, or professional duties. These roles usually require independent judgment and decision-making.
- Salary Basis Test: The employee must earn a fixed monthly salary that is at least twice the state minimum wage for full-time work.
As of 2025, California’s minimum wage is $16.50 per hour. For a 40-hour workweek, an exempt employee's annual salary must be at least $68,640. This is calculated as 2 times $16.50, times 40 hours per week, and then times 52 weeks per year ($16.50 x 2 x 40 x 52 = $68,640).
So, what does exempt employment mean in practice? It means you’re not eligible for overtime pay, and you are not entitled to mandatory meal and rest breaks under California law. Note that your employer may still expect you to work as needed to complete your job duties — even if it means staying late.
Here’s a
list of exempt employees from the California Department of Industrial Relations (DIR).
Who Are Non-Exempt Employees?
Non-exempt employees are workers who are protected by California’s wage and hour laws, meaning they are entitled to receive overtime pay, meal breaks, rest periods, and at least the minimum wage. This classification is the default for most employees, especially those paid by the hour, unless an employer can prove the worker meets the strict requirements to be considered exempt.
Non-exempt Employee Entitlements
If you are classified as non-exempt, you may be entitled to:
- Overtime pay: 1.5x your regular rate for hours worked beyond 8 in a day or 40 in a week, and 2x for hours beyond 12 in a day.
- Meal breaks: A 30-minute unpaid meal break if you work more than five hours in a day, and a second 30 minute break if you work more than 10 hours.
- Rest breaks: A 10-minute paid break for every four hours worked (or major fraction thereof).
- Minimum wage and accurate timekeeping: Employers must keep detailed records of your hours and pay you at least the state minimum wage.
Most hourly employees fall into the non-exempt category.
Why Classification Matters: Unpaid Wages and Legal Violations
Misclassifying an employee as exempt instead of non-exempt can cause serious issues. These include unpaid wages, unpaid overtime, and break violations.
Some employers misclassify workers to avoid paying overtime or providing breaks. For instance, an employer may label someone as a “manager” or “supervisor.” However, if that person spends most of their time doing non-exempt tasks, like stocking shelves or answering phones, they may still be non-exempt.
If you work long hours, skip breaks, or
don’t receive overtime pay, it’s important to verify that you’ve been classified correctly.
What To Do If You’ve Been Misclassified
If you think you’ve been misclassified, follow these steps:
- Document your job duties and hours: Keep detailed notes of your daily tasks, work hours, and breaks taken or skipped.
- Review your salary: Ensure you earn at least the minimum salary for exempt employees in California.
- Talk to HR or a manager: Sometimes misclassification happens by mistake. Your employer may fix the issue.
- Seek legal advice: If your employer won’t reclassify you or pay you what you’re owed, consult a California labor attorney. You might be entitled to back pay, interest, and penalties.
In California, the difference between exempt and non-exempt employment is clear. Misclassifying workers can lead to serious issues. If classified as exempt, you have fewer protections regarding wages and breaks. Labor laws are there to protect you, and California has some of the strongest protections in the country. If you're unsure about your employee classification or have concerns about missed breaks or unpaid overtime, we can support you. The team at Lawyers for Employee and Consumer Rights is here to help you understand your options and protect your rights.
Content is informational only and not legal advice.
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