California Overtime Laws
California overtime law and overtime calculations require employers to pay 1.5x the hourly wage after 40 hours of work per week is reached. It requires double time as the hourly wage after 12 hours in a workday. See the table below for more detailed specifications.
Most California employees are entitled to overtime compensation for working more than a 40-hour workweek, or more than eight hours in a day. The State of California's overtime laws can be confusing for both employees and employers. There are many exceptions and exemptions from these rules. Miscalculating over time can be a costly mistake. It's worth your time and money to learn the basics of when you qualify for overtime under California overtime laws.
California Overtime Law Summary
This chart highlights key provisions of California's overtime laws.
State and Federal Statutes
California Overtime Pay Rates
Overtime pay of 1.5x the employee's regular rate of pay:
Overtime pay of double the employee's regular rate of pay:
If your employer wrongfully withheld overtime pay, you may have the right to:
Filing a Wage Complaint
Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
California Overtime Laws and Federal Requirements
Employers must follow both state and federal overtime rules. Federal wage rates and overtime requirements are contained in the Fair Labor Standards Act (FLSA). When differences exist between California and federal overtime rules, an employer must follow the rule that gives more benefits to the worker. Typically, California law provides more benefits to workers.
Who Is a Nonexempt Employee?
A nonexempt employment status means that the provisions of the Industrial Welfare Commission (IWC) Orders cover an employee. These orders regulate the wages, hours, overtime rate, and working conditions in certain California industries and occupations. California law presumes that all employees are nonexempt, so they are eligible for overtime wages.
California employers have the burden of actively classifying an employee as exempt, so simply providing a title to an employee does not make them an overtime exemption, in the eyes of the law. The employee must meet very specific requirements for each applicable exemption. California recognizes the following exemptions:
- Executive/managerial exemption
- Administrative exemption
- Computer professional exemption
- Commissioned inside salesperson
- Commissioned outside salesperson
What's a Regular Rate of Pay?
Overtime is based on the regular rate of pay, which is the compensation you normally earn for the work you perform. The regular rate of pay can include several different types of payments, such as hourly earnings, salary, piecework earnings, and commissions. In no case may the regular hourly rate of pay be less than the applicable minimum wage.
If you are paid on an hourly basis, that amount is the regular rate of pay. A nondiscretionary bonus is included in the regular rate of pay when it is based upon hours worked, production or proficiency. Discretionary bonuses paid as gifts at a holiday or other special occasions are not included for purposes of determining the regular pay.
Counting Your Hours in a Workweek
Employers must calculate the workweek as a fixed schedule of a continuous, seven-day, 24-hours per day schedule. It does not have to be Sunday to Saturday. It can start on any day of the week and end seven consecutive days later.
Common Overtime Violations
Errors in calculating employees overtime are common. It's not just employers who are trying to save a buck that fail to pay overtime. Even if your employers misunderstood the hour laws, you're entitled to receive back pay. Here are some common ways overtime laws are violated:
- Treating workers as exempt
- Having employees work off the clock or volunteer hours
- Improperly using "comp" time
- Not paying for all the extra hours worked
- Treating employees as independent contractors
Having Overtime Issues in California? Get Legal Help Today
California law and federal law both provide for an employee's right to overtime pay. If you're experiencing an overtime issue at work or were denied overtime pay, you have legal options. An experienced California attorney can help you file a wage claim to recover unpaid wages and any damages caused by a denial of overtime pay. Get in touch with an experienced employment law attorney to learn more about your rights under California law.
You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help
Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.
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