California Payday Laws Generally, California employees have the right to be paid at least twice a month. For example, an employer that pays employees every two weeks is following the law as long as it pays employees within a week after each two-week payroll period closes.

How often do non exempt employees have to be paid?

California employers are required to pay nonexempt employees twice their regular hourly rate of pay for: All hours worked in excess of 12 in a single workday, and. All hours worked in excess of 8 on the seventh consecutive day of work in the workweek.

When do you have to pay an exempt employee?

You only have to pay employees for the days worked on their first and last week. If your pay periods run Monday-Sunday, with a two day weekend, and your employee starts on Wednesday, you only have to pay her for Wednesday, Thursday, and Friday. Likewise, if her last day of work is Wednesday, you only have to pay for Monday, Tuesday, and Wednesday.

What makes an exempt employee exempt from overtime?

But, a proper job description isn’t the only thing that is required for an employee to be exempt from overtime payments: the employee must receive the same paycheck every pay period. This means that whether an employee works five hours or 55 hours in a week, the paycheck is the same.

How much income can an employee claim as exempt?

If an employee makes at least $950 in the tax year and at least $300 of that income is from non-work related income, i.e. dividend distribution, then he or she can’t claim exempt on the W-4 form. If an employee will be claiming dependents on the tax return, then he or she can’t claim exempt.

When can you legally dock an exempt employee’s pay?

Because exempt employees are paid for the job and not by the hour, if your employee is still working a full 40 hours and you’re deducting a half day’s pay each week when they go to their medical appointment, you are legally right, but morally and ethically wrong.