As of January 2022, an exempt worker in a small business with 25 or fewer employees in a county without its own minimum wage legislation will be eligible for a wage level of at least $58,240. Exempt employees who work for large companies or in counties with their own minimum wage law have a higher minimum wage limit. Under the 10% rule, an employee`s guaranteed minimum wage is $615.60. You must pay employees bonuses and commissions equal to $3,556.80 during the year. If the payment is reduced by even the shortest amount, an employee is not considered exempt. There will be only one payment period after the end of the fiscal year to make up the difference. If this payment is not made, that worker is classified as a non-exempt worker and is entitled to overtime pay for all hours worked in excess of 40 hours per week in the previous year. State Minimum Wage Laws A clickable map that tells you what the minimum wage laws are in each state. Federal minimum wage provisions are included in the Fair Labour Standards Act (FLSA). The FLSA does not provide for procedures for the payment or collection of wages for an employee`s usual or promised wages or commissions beyond those required by the FLSA. However, some states have laws under which such claims (sometimes including benefits) can be filed.
Generally, employers prefer to classify employees as exempt. However, a number of prerequisites must first be met. More importantly for this article, the employee must normally receive a wage equal to at least twice the state minimum wage for full-time employment.1 The employer loses the exemption if it has a “real practice” of making undue deductions from wages. Factors to be considered in determining whether an employer actually makes improper deductions include, but are not limited to: the number of unlawful deductions, particularly in relation to the number of offences committed by employees justifying deductions; the period during which the employer made undue deductions; the number and geographic location of employees whose salaries have been unduly reduced and of managers responsible; and whether the employer has a clearly communicated policy that allows or prohibits undue deductions. If a “de facto practice” is established, the exemption is lost during the deduction period for employees of the same professional designation who work for the same managers who are responsible for the illegal deductions. To make things a little easier, we`ve created the calculator below for employees to check the minimum wage that an employee in their situation is generally entitled to under California law. If an employer retaliates against an employee in violation of California`s equal pay law through a pay cut, reduced hours of work, or termination, the employee may be eligible for damages. An employee can obtain reinstatement and reimbursement of lost wages and work caused by the employer`s actions, including interest and reasonable reasonable relief.32 In addition, some counties have their own minimum wage laws that give county workers higher wages. For example, January 1, 2022: If an exempt worker`s wage is below the minimum wage requirement, the employee can no longer be considered exempt. As a non-exempt worker, the worker would be protected by California`s compensation and hours of work laws, including overtime pay, meal breaks, and breaks.29 Moreover, for many of these states, the minimum wage rate noted above is just one of many incremental leaps the state will make toward a minimum wage target of $15.00 per hour. California (2022), Connecticut (2023), Delaware (2025), Florida (2026), Illinois (2025), Maryland (2025), Massachusetts (2023), New Jersey (2024), New York (2021 for some counties), Rhode Island (2025), Virginia (2026) and Washington DC (2020) are on track to meet this goal in the near future. Under the state exemption for highly technical computer workers, the employee can be paid by salary (at least $865.38 per week in 2022) or by the hour (according to a government proposal, the minimum hourly rate would be $28.92 in 2022).
Computer software employees may be paid on an hourly or salary basis to qualify for exemption from California`s overtime requirements. As of January 1, 2022, these employees must earn at least: If your employer discriminates against you in any way or retaliates against you, for example: If they fire you because you asked them why you did not receive minimum wage, or because you take legal action or threaten to take legal action against the labour commissioner, You can file a complaint of discrimination/reprisal with the Office of the Labour Commissioner. Alternatively, you can take legal action against your employer. See, for example, Cal. Code Regs., Tit. 8, § 11010, para. 3 [overtime], 4 [minimum wage], 5 [declared hourly wage] and 12 [rest periods]. Paragraph 1(A) of this wage order provides that paragraphs 3 to 12 “do not apply to persons employed in an administrative, executive or professional capacity”. California wage orders for most occupations contain similar exceptions.↥ Some employees are exempt from minimum wage law, such as: outside sellers, individuals who are the employer`s parents, spouses, or children, and apprentices who are regularly required under the state`s Apprenticeship Standards Division. Minimum Wage Ordinance (MW-2019) There is an exception for learners, regardless of age, who can earn at least 85% of the minimum wage in their first 160 hours of employment in occupations where they have no similar or related experience, rounded to the nearest nickel. Note: In Colorado, an exempt worker`s wage must also generally be sufficient to meet the minimum wage for all hours worked in a work week.
Employers may wish to consult legal counsel to find out how this rule may affect them. In 2022, an employee in your position is generally eligible for an annual salary of at least $. Your regular paycheques should be at least $ (before taxes and deductions). In most cases, employees must receive wages to qualify as exempt workers. Employees who receive hourly wages are generally considered non-exempt.9 (Although there are a number of employment-specific exceptions that apply to certain types of hourly workers, such as hired employees, external salespeople, and IT professionals.) In Colorado, employees must pass certain salary and duty tests to qualify for an exemption.