Exempt/Non-Exempt Classifier | California Remote Employee Hub

Classification Analysis

Question 1 of 5

What is the employee's annual salary?

California requires exempt employees to earn at least 2x minimum wage for full-time work.

$ / year

2025 Threshold: $68,640/year ($33/hour) for most exemptions
2026 Threshold: $70,304/year ($33.80/hour) for most exemptions
Computer Professional 2026: $122,573/year ($58.93/hour) minimum

Question 2 of 5

Which best describes the employee's primary duties?

Select the category that represents more than 50% of their work time.

Executive

Manages a department or subdivision, directs 2+ employees, has hiring/firing authority or significant input

Administrative

Office/non-manual work directly related to management policies or business operations, exercises discretion on significant matters

Professional (Learned/Creative)

Work requiring advanced knowledge in a field of science or learning (law, medicine, accounting) OR original/creative work in arts

Computer Professional

Systems analysis, programming, software engineering, or similar work requiring theoretical/practical application of computer science

None of the Above

Production work, routine tasks, customer service, sales (inside), support roles, or duties not fitting the above categories

Question 3 of 5

Does the employee regularly exercise independent judgment and discretion on significant matters?

This means making decisions that affect the business without requiring supervisor approval for each decision.

Yes No

Question 4 of 5

Does the employee spend more than 50% of their work time on exempt duties?

California requires that exempt employees be "primarily engaged" in exempt duties, meaning more than half their time.

Yes No Unsure

Question 5 of 5

For executive exemption: Does the employee have authority to hire/fire or recommend hiring/firing?

The employee's recommendations must be given particular weight in personnel decisions.

Yes No

Classification Result

EXEMPT

Likely Exempt

Based on your answers, this role appears to meet the requirements for exempt classification under California law.

Applicable Exemption

Executive Exemption (IWC Wage Order)
Manages department with 2+ employees
Has hiring/firing authority

Key Risk Factors to Monitor

Ensure employee continues to spend 50%+ time on exempt duties
Document management responsibilities

Learn More

Wage-Hour Requirements Page - Full details on exemptions and overtime rules
Master Compliance Checklist - Complete CA compliance requirements
Employment Agreements - Generate compliant offer letters