EmploymentQuestion 895 of 1605
Which of the following most accurately describes the compensation test for a bona fide 'exempt' executive or administrative employee in California?
a.They must be paid hourly at no less than twice minimum wage
b.They must earn at least the federal minimum salary with no California enhancement
c.They must earn a monthly salary of at least twice the state minimum wage for full-time employment and primarily perform exempt duties
d.Any salaried worker is automatically exempt from overtime
Explanation
Under Labor Code §515, a California white-collar exemption requires both a salary test and a duties test. The salary must be at least two times the state minimum wage for full-time (40 hours/week) employment, and the employee must primarily engage in exempt executive, administrative, or professional duties. Simply paying a salary does not make someone exempt; the duties and salary thresholds must both be met, and California's threshold exceeds the federal one.
Law Reference: Labor Code §515Practice all 1605 questions free — no signup required.
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