We employ several workers in a similar job role at our organization. If we determine that one of the employees satisfies an exemption from the California wage order covering our industry, can we make all workers in that role automatically exempt from the wage order?
California wage orders provide several tests to classify workers as exempt from the requirements of the wage order such as paying the workers a minimum wage, overtime or providing meal and rest breaks.
‘White-Collar’ Exemptions
The most common exemptions in the wage orders are the executive, administrative and professional exemptions. These exemptions are known collectively as the “white-collar” exemptions.
Salary Test
In order to classify a worker as exempt from the wage order requirements, an employer must show that the work is paid a predetermined salary of at least two times the applicable statewide minimum wage.
For 2026, this is $70,304 for most industries. This amount can’t be offset by indeterminate sources of compensation such as commissions and bonuses.
Work Duties Test
In addition to this salary requirement, the worker also must satisfy the work duties test for the exemption. Each “white-collar” exemption has a unique duties test.
For example, among other requirements, the executive exemption requires the worker to supervise at least two other workers, while the professional exemption requires licensure or certification from the state of California in specific fields identified in the wage order such as law, medicine, engineering and teaching, among other unique requirements.
Shared Requirements
Although each of the exemptions has unique job duties tests, all share a few requirements:
• The worker must be primarily engaged in those exempt job duties for the exemption — in other words, more than 50% of their workweek must be devoted to performing exempt duties; and
• The worker must be able to exercise discretion and independent judgment in the performance of their duties.
Because job titles and job similarities are not part of the exempt employee tests, employers can’t assume that if one worker meets the exemption then all similar workers would as well. Each worker who is classified as exempt must individually meet the exemption tests.
For example, there may be situations where some similar workers spend more or less time on their exempt job duties that may help or hinder meeting the requirement that exempt workers are primarily engaged in exempt job duties.
Further, while job duties may be similar, they may not be exactly the same. If the job duties don’t measure up to the required level of discretion and independent judgment, the worker may not be exempt.
Other Exemptions
In addition to the “white-collar” exemptions, there are four others employers use to classify workers as exempt from wage order requirements:
• Computer professional;
• Licensed physician or surgeon;
• Outside salesperson; and
• Commissioned inside sales employee (Wage Orders 4 and 7 only).
Each of these exemptions is tailored more narrowly to specific jobs, but each contains its own requirements that employers should review before utilizing these exemptions similar to “white-collar” exemptions.
As with the “white-collar” exemptions, when two or more workers are doing similar jobs, all the workers may not necessarily be exempt from the wage order. Employers must review each worker’s duties individually to ensure the role satisfies all requirements of the chosen exemption.
Column based on questions asked by callers on the Labor Law Helpline, a service to California Chamber of Commerce preferred members and above. For expert explanations of labor laws and Cal/OSHA regulations, not legal counsel for specific situations, call (800) 348-2262 or submit your question at www.hrcalifornia.com.
