What overtime requirements does California impose on Employers?
Generally speaking, California law requires an overtime premium payment to all nonexempt employees who work more than eight (8) hours in a workday and/or forty (40) hours in a workweek. For anyone entitled to overtime, employers are generally required to pay as follows:
Criteria | Pay Requirement |
On any given workday, for any hours over eight (8), but less than twelve (12) | One and a half times the regular rate of pay. |
On any given workday, for any hours over twelve (12) | Two times the regular rate of pay. |
For the first eight (8) hours worked on the seventh consecutive workday in a workweek. | One and a half times the regular rate of pay. |
For all hours over eight (8) worked on the seventh consecutive day in a workweek. | Two times the regular rate of pay. |
What is the difference between exempt and non-exempt.
Nonexempt employees are those that get overtime. Exempt employees typically do not get paid overtime, with some exceptions (for example, inside sales positions may be overtime exempt in certain situations). There are specific salary and work requirements for exempt and non-exempt classifications. For exempt classification, the pay requirements must be double minimum wage.
Starting January 1, 2023, California requires that exempt employees make a salary of at least $64,480.00 per year, or at least $31.20 per hour. While this generally applies in California, certain cities and localities have different retirements based on their own minimum wage rules. Check your local city for more information.
What exceptions are there to the overtime rules?
Yes, there are many situations that can change or modify these rules. For example, prior agreements for a nine-eighty workweek, certain classifications of employees, such as agricultural workers or at home caretakers who take care of a person that cannot feed themselves. These exceptions may change the requirements of when and how much overtime is paid.
Feel free to contact us if you have any questions about your specific situation.
What is the “regular rate of pay?”
California law has complex requirements about how an employer must calculate overtime. Overtime must typically consider any flat rate or performance bonuses earned during a workweek. It must also consider the different hourly rates in effect during a workweek. Under these circumstances, courts often require a “weighted average method” of computing overtime. Alvarado v. Dart Corp., 4 Cal. 5th 542.
How do I calculate overtime as an hourly employee?
If you are paid on an hourly basis, that amount, including among other things, shift differentials and the per hour value of any non-hourly compensation the employee has earned, is the regular rate of pay.
How do I calculate overtime if I am a non-exempt Salaried Employee?
If you are paid a salary, the regular rate is determined as follows:
Multiply the monthly remuneration by 12 (months) to get the annual salary.
Divide the annual salary by 52 (weeks) to get the weekly salary.
Divide the weekly salary by the number of legal maximum regular hours (40) to get the regular hourly rate.
What do I do if I think my employer is violating overtime laws?
If an employer refuses to compensate, or fails to properly compensate for overtime, employees have two general legal options. (1) File a claim with the California labor commissioner’s office, or (2) file a lawsuit against their employer.
(1) Labor commissioner claims
The labor commissioner provides a “self-help” system. However, you can get private representation should you desire. A claim with the labor commissioner is on your behalf and can be found here.
You can always submit an evaluation form and one of our knowledgeable staff members can help you figure out your options.
(2) File a lawsuit against your employer –
Oftentimes, labor claims are tedious and do not cover all possible claims and allegations. In that case, an employee may opt to file in state or federal court. In these situations, an employer may also be sued as a class action and/or under he private attorneys general act. While an employee can attempt to file these claims on their own, it is typically not recommended.
Feel free to contact our office to understand your rights and see your options.
As a reminder, all case evaluations are free. In addition, we take all of these cases on contingency. That means, you don’t pay unless we win. In fact, any payment comes out of your recovery. Feel free to contact us today. We look forward to helping you.
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