What Is the Exempt Salary Threshold in California for 2023?
Learn the 2023 minimum exempt salary in California for companies big and small to qualify employees for overtime exemption.
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In California, the minimum salary for an exempt employee is $64,480 annually (or $5,373.33 monthly) for employers with 26 or more employees as of 2023. For employers with 25 or fewer employees, the annual minimum salary is $58,240 (or $4,853.33 monthly). This salary threshold ensures exemption from overtime.
FAQs & Answers
- What is an exempt employee in California? An exempt employee in California is one who is not eligible for overtime pay according to state wage laws, often because their salary exceeds a specified minimum and they meet specific job duties criteria.
- How does employer size affect exempt salary thresholds in California? In California, employers with 26 or more employees must pay exempt employees at least $64,480 annually, while employers with 25 or fewer employees have a lower threshold of $58,240 annually.
- Are exempt salary thresholds subject to annual changes? Yes, the exempt salary thresholds in California are updated annually, generally based on the California Consumer Price Index or other economic factors.