EMPLOYERS – WHAT HAPPENS WHEN YOU PAY A SALARY TO A NON-EXEMPT FULL-TIME EMPLOYEE?

California Labor Code section 515(d) provides that for the purpose of computing the overtime rate of pay to a nonexempt full time salaried employee, the employee’s regular hourly rate shall be 1/40th of the employee’s weekly salary.   

Section 515(d) further provides that a fixed salary to a nonexempt employee is for the employee’s non-overtime hours only, “notwithstanding any private agreement to the contrary.”