California Workplace & Employment Law Blog

Severance agreements can be a valuable tool for employers. When drafted properly, they give employees financial support during a transition and provide employers with legal protections, usually in the form of a release of claims. But employers sometimes make costly mistakes when deciding how much severance to offer.

I recently assisted a client in responding to a serious workplace violence incident involving a threat with a firearm made against an employee. Situations like this are among the most stressful an employer can face. They require not only immediate action to protect employees but also careful compliance with California’s Workplace Violence Prevention law.

Here are key steps that employers should take when faced with workplace violence, drawn from my recent experience and prior cases I have handled.

In California, properly classifying an employee as exempt from overtime and other wage protections requires more than just a job title. Employers must satisfy both:

1. The Duties Test: The employee performs primarily exempt executive, administrative, or professional functions.
2. The Salary Basis Test: The employee earns a fixed salary that is at least twice the minimum wage for full-time work (40 hours/week, 52 weeks/year).

Most employers know the salary basis test is tied to the state minimum wage, which in 2025 is $16.50/hour, meaning the minimum exempt salary is $68,640/year. However, if your employees work in a city or county with a higher local minimum wage, failing to account for that higher rate could cost you significantly.