California Salaried Employee Appraisal Guidelines - General
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FAQ
Salary Threshold The salary threshold in California is two times the state minimum wage. For 2022, this is $15 per hour X 2080 hours/year X 2 = $62,400. This means that any California employee earning less than $62,400 per year cannot be considered an exempt employee.
The FLSA includes these job categories as exempt: professional, administrative, executive, outside sales, and computer-related. The details vary by state, but if an employee falls in the above categories, is salaried, and earns a minimum of $684 per week or $35,568 annually, then they are considered exempt.
Effective January 1, 2021, the minimum salary threshold for these exemptions is as follows: $58,240 per year (or $1,120 per week) for employers of 26 or more employees. $54,080 per year (or $1,040 per week) for employers of 25 or fewer employees.
State: On January 1, 2022, the California minimum wage will increase to $15.00 per hour for employers with at least 26 employees, and $14.00 per hour for smaller employers.
Exempt employees in California generally must earn a minimum monthly salary of no less than two times the state minimum wage for full time employment. Simply paying an employee a salary does not make them exempt, nor does it change any requirements for compliance with wage and hour laws.
Effective January 1, 2022, the minimum salary threshold for these exemptions are: Employers with 1-25 employees: $58,240 per year. Employers with 26 or more employees: $62,400 per year. Computer professionals: $50.00 per hour; $8,679.16 per month; $104,149.81 per year.
California has a higher salary basis for exempt workers than federal law does. As of January 1, 2020, to be considered an exempt employee in the U.S., a worker must be paid a minimum salary of $684 per week, or $35,568 per year.
Pursuant to Labor Code section 432.3, an applicant may voluntarily disclose his or her salary history information to a prospective employer, as long as it is being done without prompting from the prospective employer.
Employers Cannot Prohibit Employees from Discussing Pay When employees are prohibited from inquiring about, disclosing, or discussing their compensation2026 compensation discrimination is much more difficult to discover2026and more likely to persist.
In 2015, Governor Jerry Brown signed the California Equal Pay Act, a piece of legislation determined to expand existing anti-discrimination laws in California workplaces. The Act prohibits employers from forbidding employees from discussing their wages or the wages of other employees.
