Salaried Workers Must Be Paid Full Salaries by the 26th of Each Month

In California, employers may claim an exemption from paying overtime wages for certain bona fide salaried workers: Executive, Administrative, or Professional employees. What many employers do not know is the following: The full salary for the month worked must be paid in full by the 26th of the month in which the salary is being earned. Calif. Labor Code Sec. 204.

May an employer simply wait until the 30th or 31st to pay the full salary for the month? Under the Labor Code, the answer is “No.” Not only must the monthly salary be paid for the first 26 days worked, but the full salary must be paid for the remaining portion of that month. In reality, salaries paid on the 26th of each month actually pay for an entire month, before the final four to five days of the month are actually worked.

Advice for Businesses: Check your payroll practices to ensure (a) you are properly claiming an “exemption” from overtime for your salaried workers, and (b) you are paying those salaries in full by the 26th of the month in which the work occurs.