Minimum Wage in California: Who Is Exempt from the Minimum Hourly Wage?

California has one of the highest minimum wages in the United States, ensuring that workers receive fair compensation for their labor. As of 2024, the state’s minimum wage is $16 per hour for most employees, with some cities and counties setting even higher rates. However, not all workers are entitled to this minimum wage. Certain exemptions exist based on job roles, industry, and employment status.

Understanding these exemptions is crucial for both employers and employees. Below, we explore who is exempt from California’s minimum hourly wage and what that means for workers in these categories.

Who Is Exempt from the Minimum Wage in California?

1. Executive, Administrative, and Professional Employees

Certain salaried employees in executive, administrative, or professional roles are exempt from California’s minimum wage laws. To qualify for this exemption, employees must:
• Perform high-level job duties that involve independent decision-making.
• Earn at least twice the state minimum wage for full-time employment (which equates to an annual salary of at least $66,560 in 2024).

This exemption applies to managers, business executives, and specialized professionals such as lawyers, doctors, and accountants.

2. Outside Salespersons

Employees classified as outside salespersons are also exempt. These workers spend more than half of their working hours away from their employer’s place of business, primarily engaging in sales-related activities. Since their income is usually commission-based, they are not entitled to the state minimum wage.

3. Independent Contractors

Independent contractors are not considered employees under California labor laws and are therefore exempt from minimum wage requirements. However, California uses the ABC Test to determine whether a worker is truly an independent contractor. If an employer misclassifies an employee as an independent contractor, they could face legal consequences.

4. Apprentices in State-Approved Programs

Registered apprentices working under approved apprenticeship programs may be exempt from minimum wage laws. These programs provide hands-on training in various trades, and wage structures are often set by the apprenticeship agreement.

5. Certain Learners and Interns

Employees classified as “learners”—those with no prior experience in a given occupation—may be paid 85% of the minimum wage for their first 160 hours of work. This exemption is intended to help new workers gain experience while gradually transitioning to full wages. Similarly, unpaid interns working as part of an educational program may not be entitled to minimum wage.

6. Family Members Working for a Business

Certain family members working for a small family-owned business may be exempt from minimum wage laws. This often applies to children of business owners working in non-traditional employment settings. However, California law generally favors strong labor protections, and exemptions in this category are limited.

7. Certain Agricultural and Domestic Workers

While most agricultural and domestic workers are entitled to minimum wage, specific exemptions apply. For example, some domestic workers who provide companionship services (such as caregivers for seniors) may be exempt from minimum wage laws under certain conditions.

What This Means for Employers and Workers

Employers must carefully determine whether an employee qualifies for a minimum wage exemption. Misclassifying employees as exempt can lead to penalties, back wages, and legal action. Workers who believe they are unfairly denied minimum wage protections can file a complaint with the California Labor Commissioner’s Office.

California’s labor laws are designed to protect workers, but exemptions exist for specific roles and industries. Understanding these exemptions helps ensure compliance and fair treatment in the workplace.