Many salaried workers in California assume they aren’t entitled to overtime pay. That’s a myth — and it could be costing you thousands of dollars each year. This misunderstanding is widespread and often stems from the belief that salaried employees automatically fall under the exempt category, which isn’t true. In reality, whether or not you’re entitled to overtime depends more on the nature of your job duties and compensation level—not just the fact that you receive a salary.
Employers may take advantage of this confusion by assigning excessive work hours to salaried employees without paying legally mandated overtime. As a result, workers often find themselves burning out while unknowingly losing income they are legally owed. This type of wage violation is one of the most common forms of labor exploitation in the state.
At Bibiyan Law Group, our California employment attorneys regularly help salaried workers recover unpaid overtime, missed break premiums, and other compensation they’ve been wrongfully denied. In this guide, we’ll help you understand who truly qualifies as exempt, how to spot misclassification, and what steps to take if your employer is breaking the law.
Common Misconceptions About Salary and Overtime
Let’s start with a widespread myth: “I’m on salary, so I don’t get overtime.”
In California, that’s simply not true.
Whether you are paid hourly or salary, your right to overtime depends on your job classification — not your method of payment. Many employees who receive a salary are still entitled to:
Time-and-a-half for hours worked beyond 8 per day or 40 per week
Double time for hours worked beyond 12 in a single day
Meal and rest breaks and penalties for missed breaks
If your employer is denying these rights, you may have a claim for unpaid wages. Learn more about your legal protections under California labor law.
California’s Rules for Exempt vs. Non-Exempt Employees
In California, not all salaried employees are exempt from overtime pay. To legally qualify as exempt, a position must meet three strict requirements under state law. First, the Duties Test requires that your primary job responsibilities fall under executive, administrative, or professional functions. Simply having a high-level title is not enough — your day-to-day duties must clearly reflect these roles.
Second, there’s the Salary Threshold requirement. As of 2024, you must earn at least twice the state minimum wage for full-time employment — that’s $66,560 annually for employers with 26 or more employees. Earning less than this amount automatically disqualifies you from exempt status.
Third, you must regularly use independent judgment and discretion in your role. This means making significant decisions that impact the business, not just following detailed instructions or completing routine tasks.
If any one of these requirements is not met, you are considered non-exempt and your employer is legally required to pay overtime — even if you are salaried. Unfortunately, many salaried employees are misclassified and denied overtime pay they’ve rightfully earned. In some cases, this misclassification is part of broader wage theft practices that employers use to cut labor costs.
Understanding the "White Collar Exemption"
Most employers rely on the white collar exemption to avoid paying overtime, claiming their salaried employees fall into categories like executives, administrators, or professionals. These labels, however, are often misleading. While it’s true that California labor law recognizes exemptions for certain roles, the burden of proof lies with the employer—and they must meet all legal requirements, not just apply a title.
This exemption typically applies to:
Executives responsible for managing teams and making strategic decisions
Administrators who perform high-level operations involving independent judgment
Professionals such as doctors, lawyers, and engineers who possess specialized education and licensing
Still, the law doesn’t just look at what’s written on your business card. Instead, it examines the real substance of your work. If your day-to-day activities are repetitive, task-based, or manual in nature—even if you’re salaried—you are likely non-exempt and legally owed overtime.
✅ Real-world duties matter more than job titles
✅ Salary amount alone does not make you exempt
✅ Routine, manual, or repetitive work likely makes you non-exempt
If your daily responsibilities involve stocking inventory, performing customer service, completing data entry, running deliveries, or doing hands-on technician work, you may be misclassified. This misclassification can result in significant wage theft, and you could be entitled to years of back pay, interest, and penalties.
How Employers Misclassify Salaried Workers
Unfortunately, some employers intentionally misclassify employees to avoid paying overtime. Common tactics include:
Giving inflated job titles without real management authority
Paying a salary while expecting 50–60+ hours of routine labor per week
Denying overtime pay and breaks to workers with non-exempt duties
Failing to adjust salaries when minimum thresholds increase
This isn’t just unethical — it’s illegal. Employers can face steep penalties and lawsuits. Misclassified employees often recover years of back pay with help from an unpaid overtime attorney.
Real Example: Carlos’s Case
Carlos worked as a salaried assistant manager for a major retail chain in California. He routinely worked 55+ hours a week, but never supervised employees or made high-level decisions. His tasks included stocking, returns, and customer checkout.
Despite his “manager” title, Carlos was performing non-exempt duties. After contacting Bibiyan Law Group, he filed a wage claim and recovered over $18,000 in unpaid overtime and penalties.
His story is not unique — we’ve seen similar cases in:
- Retail and fast-food franchises
- Healthcare facilities and clinics
- Logistics companies and warehouses
- Customer service centers
- Sales and marketing departments
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What To Do If You’re Being Denied Overtime
If you’re on salary and working long hours, here’s what you should do:
Track Your Hours: Keep a private log of your work hours, including after-hours tasks.
Review Your Job Duties: Compare what you actually do to California’s exemption tests.
Check Your Salary: Ensure it meets the minimum threshold set by the state.
Seek Legal Advice: A California employment lawyer can determine if you’re misclassified and help recover what you’re owed.
Remember: You have up to 3 years to file a claim for unpaid wages — but the sooner you act, the easier it is to prove your case.
What You Could Recover
If you’ve been wrongly classified as exempt, you may be entitled to recover significant compensation. This can include unpaid overtime wages, penalties for missed meal and rest breaks, waiting time penalties, interest, damages, and even legal fees and court costs.
These amounts can add up quickly — especially if the misclassification has lasted for several months or even years. The longer the issue goes unaddressed, the more your employer may owe you. That’s why it’s critical to consult with an experienced employment attorney as soon as possible to understand your rights and explore your legal options.
FAQs About Salaried Overtime Pay in California
A: Yes, unless they meet strict exemption criteria under state law.
A: $66,560/year for employers with 26 or more employees.
A: Not necessarily — job titles are not what determine exemption status.
A: Generally, 3 years from the date of the last unpaid wage violation.
A: Retaliation is illegal. You may also recover damages for wrongful termination.
Speak With a California Overtime Lawyer Today
At Bibiyan Law Group, we help salaried workers uncover misclassification and get paid what they’re owed. If you believe you’re working overtime without proper compensation, contact us today.
✅ Free consultation
✅ No fees unless we win
✅ Millions recovered for California workers
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