As nouns the difference between debt and liability is that debt is an action, state of mind, or object one has an obligation to perform for another, adopt toward another, or give to another while liability is the condition of being liable.
California law requires that in order to be classified as exempt, an employee must earn a monthly salary which is twice the state minimum for a full time employee (40 hours per week). Currently the minimum salary for a full time, exempt employee is $33,280 per year.This will increase on July 1, 2014 to a minimum exempt salary of $37,440 per year. By 2016, employees will need to earn at least $41,600 per year to meet the minimum salary test for exempt status.State minimum wage law will also impact the pay of commissioned inside sales employees.his will increase on July 1, 2014 to a minimum exempt salary of $37,440 per year. By 2016, employees will need to earn at least $41,600 per year to meet the minimum salary test for exempt status.
As a general rule, an employer may lawfully reduce an exempt employee's salary, on a prospective basis, so long as the employee's guaranteed salary does not drop below two times the California minimum wage (currently equating to a minimum salary of $33,280 annually).any times this arises where the employer tries to give the employee something positiveto offset the reduction in salary and negative morale that flows from the reduction. For example, an employer might consider reducing exempt employees' salaries by 20% in exchange for giving the employees Fridays off.