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CA Administrative Exemption
Exempt employees under California's administrative exemption

Employers must pay their employees overtime and minimum wages unless an employee is legally considered "exempt." One of these exemptions is the administrative exemption. Unfortunately, the administrative exemption is one of the most misunderstood and misapplied.

In addition to the federal administrative exemption, many states – including California – have their own laws and requirements for employees to be considered exempt.

What is California's administrative exemption?

Generally speaking the administrative exemption typically applies to employees who spends the majority of their work time:

  • doing office or non-manual work directly related to management policies or general business operations of the employer or the employer’s customers, and
  • exercising discretion and independent judgment.

Administrative exempt employees must also earn a salary of more than $33,000 a year.

Commonly misclassified employees under CA's administrative exemption

Employees commonly misclassified as exempt under California's administrative exemption may include:

  • Retail store managers
  • Assistant store managers
  • Mortgage loan originators
  • Insurance claims adjusters
  • Pharmaceutical sales representatives
  • Manufacturer's representatives that do marketing and merchandising at retail stores
Are you misclassified as an administrator?

Think you are misclassifed as exempt? Free and confidential evaluations are available with our employment lawyers by calling (866) 981-4800 or by filling out the form to the right.

Why Girard Gibbs?

Girard Gibbs is a national litigation firm representing consumers, investors, employees, and small businesses in cases involving consumer protection, personal injury, securities, antitrust, and employment laws. The firm’s senior partners, Daniel Girard and Eric Gibbs, have been selected for inclusion in The Best Lawyers in America® 2012 and Northern California Super Lawyers, and have earned AV-Preeminent ratings from Martindale-Hubbell, recognizing them in the highest class of attorneys for professional ethics and legal skills.

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