An Administrator's Guide to California Private School Law

Chapter 6 – Wage And Hour Laws

Since these exemptions exclude employees from overtime requirements and are narrowly construed against employers, it is critical for schools to understand the exemptions and to apply them correctly. To qualify for an executive, administrative, or professional exemption, the employee must satisfy all of the following factors:  Earn a monthly salary equivalent to no less than twice the state minimum wage for full-time employment. This is known as the “salary test” or “salary basis test.”  Be primarily engaged in the duties that meet the test of the exemption. This is known as the “duties” test.  Customarily and regularly exercise discretion and independent judgment in performing those duties. 506 The school bears the burden of proving the employee is exempt from the requirements of the wage laws. 507 Exemptions are one aspect of wage and hour laws in which California law is significantly more restrictive than federal law. This section describes the “salary” and “duties” tests and the meaning of exercising “discretion and independent judgment.” Exempt employees in private schools generally include school administrators, business managers/officers, human resources or personnel managers, academic counselors and advisors, and deans and department heads. Non-exempt employees generally include substitute teachers, teacher’s aides, vocational instructors, maintenance workers, office assistants/secretaries and nurses. LCW Practice Advisor The salary test for teachers and computer software field employees is different than for other types of employees. Please see the sections below discussing the salary and duties tests for teachers and computer software field employees.

Job titles reflecting administrative classifications alone are not determinative of whether an employee is exempt or non-exempt. The actual determination of exempt or non-exempt status must be based on the nature of the actual work performed by the individual employee. 508

LCW Practice Advisor

B. S ALARY T EST Generally, an exempt employee must earn a monthly salary equivalent to no less than two times the state minimum wage for full-time employment. 509 Full-time employment is defined as 40 hours per week. 510 For the period between January 1, 2019 and December 31, 2019, the employee must earn at least $4,160 per month ($49,920 annually) to meet the salary test because state minimum wage is $12.00 per hour. 511 The salary test will rise to $4,506.67 per month ($54,080 annually) on January 1, 2020 when the state minimum wage increases to $13.00 per hour. 512 Part-time, temporary and substitute employees must meet the same salary test.

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 154