close dialog

- News Flash! HRSPI Acquired. -

HR Solutions Partners, Inc. (HRSPI) is pleased to announce that HRSPI has recently been acquired by experienced Silicon Valley professionals.

The new owners recognize the value of the business and will maintain the existing HRSPI brand and service offerings. I have committed to serving as a member of the Advisory Board to assist in the transition and provide guidance and advice in 2021.

I am confident the new leadership will be able to bring not only the best and brightest HR talent to their clients but also to support their service offerings with state-of-the-art technology.

You can look forward to more details in the New Year!

Donna DeGrande, CEO
HR Solutions Partners, Inc.

Blog Post (Archives)

California Increase In Minimum Wage Affects Exempt Employees Too

(posted: January 5th, 2020)

Exempt salaries increase

How the California minimum wage increase affects exempt employees:

As of January 1, 2020, the minimum wage in California increased from $12.00 per hour to $13.00 per hour for employers with 26 or more employees.

The increase is from $11.00 per hour to $12.00 per hour for employers with 25 or fewer employees.

With the increase in the state minimum wage, there is a corresponding raise in the minimum salary required to qualify as exempt under the "white collar" exemptions.

  • So, on January 1, in order to qualify for a white collar exemption, the employee must receive an annual salary of at least $54,080 for large employers and $49,920 for small employers.
  • The salary for exempt employees must be a guaranteed, fixed amount.
  • Plus, to qualify as an exempt employee, the employee must spend more than 50% of their time performing "exempt" or "white collar" duties.

Note that employers bear the burden of proof when establishing that an employee qualifies as an exempt employee.

Who Qualifies as Exempt?

As touched on above, there are usually three simple requirements to determine whether a worker is an exempt employee under California law:

  1. Minimum Salary. The employee must be paid a salary that is at least twice the state minimum wage for full-time employment.
  2. White Collar Duties. The employee's primary duties must consist of administrative, executive, or professional tasks.
  3. Independent Judgment. The employee's job duties must involve the use of discretion and independent judgment.

In addition to this three-part test, there are several types of exemptions that apply to specific jobs. The most common job-specific exemptions apply to:

  • Commissioned employees
  • Physicians and surgeons
  • Computer professionals
  • Private school teachers
  • Outside salespersons
  • Truck drivers
  • Union employees

These job-specific exemptions have their own tests (distinct from the three-part test mentioned above). And some of them are only partially-exempt.

Importantly, employers are only entitled to claim an exemption when an employee "plainly and unmistakably" meets the standard required for the exemption.

Note that, when doubt exists, the law generally requires the employee to be classified as nonexempt.

close form

Blog Feedback Form

first name: last:

Email Address and Last Name are required for security ONLY they do NOT appear with your post.

Allow 10 minutes between posts.

All post are subject to moderation.


feedback (2000 chars):

Subscribe me to KLR's Business Growth Report E-Newletter

Login to HRSPI Client Portal
Forgotten PasswordForgot Password
Executive Search Executive Search

Harrassment Prevention

HRSPI offers comprehensive, interactive, AB 1825 and SB 1343 compliant training. Programs include introduction to recent anti-bullying legislation.

Latest News

News Archives

Latest Blog

Blog Archives