I am wondering what the minimum wage for exempt employees in San Francisco is. Exempt employees are paid a salary that equals at least twice the applicable state minimum wage for full-time employees. For employees based in cities where the minimum wage is higher than the minimum wage in California, does their salary needs to be at least twice the minimum wage in that city? In that case, is the minimum salary for exempt employees based in San Francisco: $14/hour x 2 x 40 x 52 = $58,240. Or is it twice the minimum wage in California: $11 x 2 x 40 x 52 = $45,760? Thank you!
Hi Celine,
Thank you for your question. The Labor Code states that the minimum salary for exempt employees in California is:
[A] monthly salary equivalent to no less than two times the state minimum wage for full-time employment.
(Labor Code, § 515, subd. (a), emphasis added.)
Because it specifies that the relevant minimum wage is the State of California’s minimum wage—not merely the “applicable” minimum wage—the relevant minimum salary for exempt employees is calculated using the State of California’s general minimum wage law.
So, the minimum salary for exempt employees is generally unaffected by local minimum wage ordinances—unless, of course, the local ordinance adopts rules specifically targeting exempt employees. But absent some local ordinance that applies specifically to exempt employees, a local minimum wage ordinance would not affect the minimum salary requirement for exempt employees. (Labor Code, § 515, subd. (a).)
With regard to San Francisco specifically, it is possible that either the city or the county has special rules that apply to exempt employees, but I don’t see the word “exempt” in San Francisco’s minimum wage ordinance. (See S.F. Admin. Code, Ch. 12R [the minimum wage ordinance].) So my assumption would be that the minimum salary for exempt employees is the same in San Francisco as it is in the rest of California.
This means that the minimum salary for exempt employees in San Francisco during 2018 is probably either:
- $3,640.00 per month (or $43,680.00 annually) if the employee works for an employer of 25 or fewer people, or
- $3,813.33 per month (or $45,760.00 annually) if the employee works for an employer of more than 25 people.
I hope this information helps. Please remember that this information does not constitute legal advice and should not be relied on. Nor does it create an attorney-client relationship.
I wish you the best of luck in your situation!