Employers must pay their employees California overtime and California minimum wage> unless an employee is “exempt” under California’s employee exemptions. One of these exemptions is the California administrative exemption. Unfortunately, the administrative exemption is one of the most misunderstood and misapplied.

In addition to the federal , 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 $48,192 a year, as of 2019.

Commonly misclassified employees under the California 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

There is also a similar federal administrative exemption under federal wage & hour law.

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Our California employment attorneys – with over 50 years of collective experience litigating under California employment law – know how to fight for employees’ rights and get them the money they deserve. We’ve recovered tens of millions of dollars for California employees and represent individuals as well as class actions in virtually every area of California employment and labor laws: California overtime law, off the clock violations in CA, breach of contract disputes, California independent contractor law, sexual harassment, employee misclassification, discrimination, as well as mass layoffs in violation of the California WARN Act. Our California employment lawyers are repeatedly recognized for their expertise litigating in California. Founding partner Eric Gibbs has been selected as one of the Top Plaintiff Lawyers in California. And seventeen of the firm’s attorneys were selected as Northern California Super Lawyers and Rising Stars, a distinction received by less than 5% of attorneys in Northern California.

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Gibbs Law Group is a California-based law firm committed to protecting the rights of clients nationwide who have been harmed by corporate misconduct. We represent individuals, whistleblowers, employees, and small businesses across the U.S. against the world’s largest corporations. Our award-winning lawyers have achieved landmark recoveries and over a billion dollars for our clients in high-stakes class action and individual cases involving consumer protection, data breach, digital privacy, and federal and California employment lawsuits. Our attorneys have received numerous honors for their work, including “Top Plaintiff Lawyers in California,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” “Best Lawyers in America,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”

Misclassified as an exempt administrative employee?

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