State of California Wage & Salary Law
- Each employer in California is required to pay every employee at least the state's minimum wage. As of January 2008, the minimum wage in California is $8 per hour. Under no circumstances may an employee agree to work for less than this minimum wage amount. This includes an employee receiving gratuities from customers as part of wages. It is illegal for an employer to claim a tip credit toward a tipped employee's minimum wage requirement. The only exception to the minimum wage rule occurs for a minor employee between the ages of 16 and 17. An employer may choose to pay a worker in this age group no less than 85 percent of the state minimum hourly wage.
- California overtime law requires an employee to receive 150 percent of his base rate of hourly pay for every hour worked over 40 during a standard seven-day work week and for working over eight and up to 12 hours in a single shift. For example, if an employee earns $12 per hour, her standard overtime pay rate is $18 per hour. An employee in California receives double her base hourly rate for every hour over 12 worked in a given shift.
- A salaried worker who is regularly in charge employment decisions and the direction of a business is exempt from California overtime requirements. An exempt employee must be paid the predetermined amount of money per pay period regardless of hours worked or quality of work performed. An exempt employee must earn an annual salary of at least $28,000 per year or $455 per week to maintain exempt status. An employee may reduce the pay of an exempt employee only in a limited number of instances, including absences not related to injury or illness or as a penalty imposed in good faith for violating safety rules and conditions.
- An employee who believes her employer is violating the California statutes due to payment of salary or wages may file a wage claim with the Division of Labor Standards Enforcement. A copy of the appropriate forms for filing a wage claim are obtained by visiting the California Department of Industrial Relations website. The claim must be made through the mail or in person at a branch office of the Division of Labor Standards Enforcement. A claim cannot be made electronically or through a fax machine.