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Reuse Request

May I use a manager's bonus pay to meet the minimum salary requirements for the executive exemption?

No, in order to meet the salary test of an executive exemption, the manager must receive a monthly salary equivalent of no less than two times the current state minimum wage for full-time employment. Full-time employment (for exempt salary requirements only) is defined in Labor Code Section 515(c) as 40 hours per week.

A bonus cannot be added to a salary to meet this minimum salary test. Also, be aware that there is a job duties test to meet the executive exemption.

Read about Executive Exemption in the HR Library.

Q&As

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