California Hourly vs. Salary: Know Your Workplace Rights

November 13, 2025

If you’ve ever wondered whether being hourly or salary changes your rights at work, you’re asking the right question. And in California? The answer matters more than you might think. 

Many employers use the terms “salaried” or “exempt” to make workers believe they’re not entitled to overtime or breaks. But the truth is this: 

✅ Your job duties, not your job title, determines your rights. 
✅ Even salary workers may be legally entitled to overtime and breaks. 
✅ Hourly employees have strong protection under California labor law. 

At Abramson Labor Group, we see employees being misclassified every single day. And that misclassification often costs workers thousands of unpaid wages. 

Let’s break it down in a way that’s clear, relatable, and fully California-law compliant. 

Hourly Employees: Strong Wage & Break Protections 

Hourly workers in California are typically non-exempt, which means the law gives them robust protection: 

• Overtime pay after 8 hours/day or 40 hours/week 

• Double-time in certain situations 

• Meal breaks (30 minutes unpaid) 

• Paid rest breaks (10 minutes every 4 hours) 

• Strict protection against off-the-clock work 

If you’re hourly, your employer must track and pay you for every minute you work. 
No exception. No “favor for the team”. No unpaid prep or closing time. 

Salary Employees: Not All Are “Exempt” From Overtime 

Many Californians believe that being salaried automatically means no overtime. 
But that’s not how the law works. 

To be exempt from overtime, a salary employee must meet three specific requirements: 

1. Be paid a minimum salary (at least twice the state minimum wage for full-time work) 

2. Perform high-level duties (typically executive, administrative, or professional tasks) 

3. Exercise independent judgment regularly 

If your employer pays you a salary but still controls your tasks minute-by-minute, or has you done mostly manual, repetitive, or routine work, you may be misclassified. 

And misclassification is illegal. 

Misclassified workers may be owed: 
✅ Overtime 
✅ Back pay 
✅ Penalties 
✅ Interest 

This adds up, fast. 

The Biggest Problem? Misclassification 

One of the most common violations we see is employers labeling workers as “salaried” or “exempt” just to avoid paying overtime. 

Common red flags: 

• You work long hours with no overtime pay 

• Your job duties don’t match your “title” 

• You’re mostly doing non-managerial, routine, or physical tasks 

• You’re expected to stay late, come early, or work weekends “on salary” 

If this sounds like you, your employer may owe you compensation under California law. 

Hourly or Salary, You Still Have Rights 

No matter how you’re paid, California law protects you from: 

• Wage theft 

• Discrimination 

• Harassment 

• Retaliation 

• Wrongful termination 

• Unsafe workplace conditions 

You’re Not Alone 

From tech companies to retail stores to healthcare facilities, misclassification is one of the biggest wage violations in California workplaces. 

And the consequences for workers are real: 

• Unpaid overtime 

• Lost break meals/rest breaks 

• Chronic overwork 

• Burnout 

• Underpayment 

• Retaliation for speaking up 

You don’t deserve that.  

Hourly and salaried workers may have different wage rules, but they share one powerful truth: 

You deserve fairness, respect, and lawful treatment at work. 

The difference between hourly and salary matters, but it does not give employers a free pass to violate your rights. 

If something doesn’t feel right with your pay, your classification, or your treatment at work, you don’t have to guess. You just need answers.