California Overtime Attorneys Fighting for Your Pay

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Wage Law Group team has overtime attorneys that have experience making sure employees are compensated adequately for their time.  Our expert attorneys understand the California Overtime law and how it affects your rights.  We also understand how the overtime law applies in each county.    If you feel that your employer is violating this, or any other employment policy, feel free to contact one us for a free case evaluation.  We have offices in Los Angeles County, Orange County, Riverside County, San Diego County, Ventura County and practice in all major counties in the state. 

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The following information summarizes relevant California overtime laws that all employers need to follow.

 

How much is overtime pay in California?

 

Depending on the number of hours worked in any given workday, California overtime pay is either (1) one and one-half (1 ½) times an employee’s regular rate of pay, or (2) double an employee’s regular rate of pay.

 

After how many hours is overtime pay required in California (at one and one-half)?

 

California law requires employers to pay non-exempt employees one and one-half (1 ½) times the employee’s regular rate of pay for all time worked (a) in excess of 8 hours in a workday, (b) up to the first 8 hours worked on the 7th consecutive day of work in a workweek, and (c) in excess of 40 hours in a workweek

 

California Overtime Pay Example How to Calculate Standard Overtime?

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EXAMPLE  - Overtime pay at one and one-half (1 ½) times the employee’s regular rate of pay:

An employee makes one rate of pay, and that rate is $20.00 per hour, making the employee’s regular rate of pay $20.00. Therefore, the employee’s time and one-half rate (or overtime rate) is $30.00 per hour ($20.00 per hour x 1.5)  If this employee works 50 hours in a particular workweek, the employer owes the employee $1,100.00 for that workweek as follows:

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• $800.00 for the 40 hours of work at $20.00 per hour, and

• $300.00 for the 10 overtime hours of work at $30.00 per hour

 

How About Double Time? What is it? After how many hours is overtime pay required in California (at double pay)?

 

California law requires employers to pay non-exempt employees double the employee’s regular rate of pay for all time worked in excess of 12 hours in any workday and for all hours worked in excess of 8 hours on the 7th consecutive day of work in a workweek.

 

EXAMPLE Overtime pay at one and one-half (1 ½) times the employee’s regular rate of pay AND double the employee’s regular rate of pay:

 

An employee makes one rate of pay, and that rate is $20.00 per hour, making the employee’s regular rate of pay $20.00. Therefore, the employee’s time and one-half rate (or overtime rate) is $30.00 per hour AND the employee’s double time rate is $40.00 per hour ($20.00 x 2) if this employee works:

• 15 hours on Monday

• 18 hours on Tuesday

• 10 hours on Wednesday

• 10 hours on Thursday, and

• 10 hours on Friday, the employer owes the employee $1,580.00 for that workweek as follows:

  • Monday: $160.00 for the 8 hours of work at $20.00 per hour; $120.00 for the 4 hours of time and one-half overtime at $30.00 per hour; and $120.00 for the 3 hours of double overtime at $40.00 per hour (total: $400.00)

  • Tuesday: $160.00 for the 8 hours of work at $20.00 per hour; $120.00 for the 4 hours of time and one-half overtime at $30.00 per hour; and $240.00 for the 6 hours of double overtime at $40.00 per hour (total: $520.00)

  • Wednesday: $160.00 for the 8 hours of work at $20.00 per hour; and $60.00 for the 2 hours of time and one-half overtime at $30.00 per hour (total: $220.00)

  • Thursday: $160.00 for the 8 hours of work at $20.00 per hour; and $60.00 for the 2 hours of time and one-half overtime at $30.00 per hour (total: $220.00), and

  • Friday: $160.00 for the 8 hours of work at $20.00 per hour; and $60.00 for the 2 hours of time and one-half overtime at $30.00 per hour (total: $220.00)

 

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California overtime laws have some exemptions,* meaning the laws do not apply to certain employees.  California overtime laws also have some exceptions,** meaning a special rule applies to certain employees.

 

Question: What If I am a Salaried Employee? Does that Mean I am Not Entitled to Overtime? Answer: Overtime laws also require salaried overtime in California for non-exempt salaried employees

 

Employers must pay overtime to non-exempt salaried employees.  The overtime rate of compensation required to be paid to a non-exempt full-time salaried employee is determined using the employee’s regular hourly salary as 1/40 of the employee’s weekly salary.

 

EXAMPLE of determining a non-exempt full-time salaried employee’s proper overtime pay:

• An employee makes $1,000.00 per week

• Therefore, the employee’s regular rate of pay is $25.00 per hour ($1,000.00 weekly / 40 hours per workweek)

• Thus, the employee’s time and one-half rate (or overtime rate) is $37.50 per hour ($25.00 per hour x 1.5)

• If this employee works 50 hours in a particular workweek, the employer owes the employee $1,375.00 for that workweek as follows:

  • $1,000.00 for the 40 hours of work at $25.00 per hour, and

  • $375.00 for the 10 overtime hours of work at $37.50 per hour

 

Overtime laws in California require that most pay provided an employee during a workweek be included when determining the employee’s overtime rate

 

To determine overtime rates, an employee’s regular rate of pay is not always just that employee’s hourly pay, or 1/40 of the employee’s weekly salary.  Sometime the regular rate of pay must be determined based on other wages paid to the employee, for example, if the employee earns multiple rates of pay, or a non-discretionary bonus(es).

 

Overtime Pay in California for Multiple Rates of Pay

 

Because an employee’s proper overtime pay is calculated using the employee’s regular rate of pay over the course of the workweek, all eligible non-overtime pay received by the employee must be included.  For instance, if an employee is paid two (2) different rates of pay for doing different work, or performing work during different times (weekday vs. weekend), both rates must be used to calculate the employees regular rate.  

 

EXAMPLE of proper overtime pay with two (2) different rates of pay

• An employee earns $20.00 per hour for all work performed Monday through Wednesday

• The same employee earns $25.00 per hour for all work performed Thursday through Sunday

• If this employee works:

  • 8 hours on Monday

  • 8 hours on Tuesday

  • 8 hours on Wednesday

  • 8 hours on Thursday,

  • 8 hours on Friday, and

  • 8 hours on Saturday, his regular rate is as follows:

    • Monday through Wednesday pay is $480.00 ($20.00 per hour x 24 hours)

    • Thursday through Friday pay is $400.00 ($25.00 per hour x 16 hours)

    • The Monday through Friday pay is added together for a total of $880.00

    • $880.00 is divided by the number of hours work: 40, for a regular rate of $22.00 per hour

    • Thus, the employee’s time and one-half rate (or overtime rate) is $33.00 per hour ($22.00 per hour x 1.5)

  • Because the employee worked 40 hours between Monday and Friday, and all time worked in excess of 40 in any workweek must be at the overtime rate, the employer owes the employee overtime pay for the 8 hours worked on Saturday

  • Therefore, the employee earned $264.00 for the Saturday overtime work ($33.00 per hour x 8 hours)

  • Thus, for this workweek, the employee earned $1,144.00 ($880.00 in regular pay + $264.00 in overtime pay)

 

Overtime pay in California when a non-discretionary bonus is paid. How Does my Bonus Affect My Overtime? 

 

Because an employee’s proper overtime pay is calculated using the employee’s regular rate of pay over the course of the workweek, all eligible non-overtime pay received by the employee must be included.  For instance, a non-discretionary bonus earned during a workweek must be combined with the amount of regular pay earned in that week.

 

EXAMPLE of proper overtime pay with a non-discretionary bonus

• If an employee earns $20.00 per hour, works 50 hours in a week, and earns a non-discretionary $200.00 bonus, for example, packing a predetermined number of boxes, the employee’s overtime rate is as follows:

  • The employee’s regular rate is $25.00 (($20.00 per hour x 40 regular pay hours + $200.00) / divided by 40 regular pay hours)

  • Therefore, the employee’s time and one-half rate (or overtime rate) is $37.50 per hour ($25.00 per hour x 1.5)

  • And the employer owes the employee $1,100.00 for that workweek as follows:

    • $800.00 for the 40 hours of work at $20.00 per hour,

    • $200 for the non-discretionary bonus, and

    • $375.00 for the 10 overtime hours of work at $37.50 per hour

 

Common Overtime Violations Committed By Employers

 

In view of the overtime requirements in the labor code, employers tend to fall into a few categories of violators.  These violators break down as follows:

 

Employers With Bad Timekeeping Methods

 

Sometimes employers will “estimate” the total hours an employee has worked rather than employ a timekeeping system.  This results in rounding errors that favor the employer.  Importantly, in a recent supreme court decision in the Troester v. Starbucks case, the employer, who underpaid employees by 4-10 minutes at the end of the shift was liable for underpaid wages, even if that time is considered minimal or de minimis. 

 

Make sure to independently track your time if your employer is not using a clock in/clock out system of some sort and is “estimating” your work hours.

 

Off the Clock Work/Work Prep Time

 

Another common violation occurs where employees are required to do some work before or after work that they aren’t paid for.  In Troester v. Starbucks, employees would clock out, then set the alarm and lock up before leaving at the end of their shift.  Failing to compensate employees for that time was improper.  Where those employees had worked 8 hour shifts, they could be entitled to overtime compensation for the extra time.

 

More egregious violations often occur where an employer asks employees to “set up” prior to a shift, or “take down” after a shift but this prep time occurs off the clock.  In addition. Employees can often be required to do business from home, or run errands for the company before or after work.  Employees should be certain to consider this time when determining how much overtime you should be paid.

 

Miscalculating Overtime During Shift Differentials, or Bonus Incentive Payments Are Made

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Finally, employers oftentimes do not calculate overtime properly based on multiple rates of pay in a given workweek.  That includes failing to calculate overtime on a weekly basis rather than a bi-weekly basis when multiple rates of pay are involved.  Not accounting for shift differentials in determining a regular rate of pay.  Finally not including bonuses when they calculate overtime.

 

Make sure to carefully consider your wage statement and all type so remuneration when determining your overtime pay.  If you were given an incentive bonus in the same week you earned overtime, your regular hourly rate should be higher than your base hourly rate.

 

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What to do if your employer is violating the California overtime laws? Four Steps to Take if You Think Your Employer is Violating California Overtime Law

 

• Step 1: Determine If you are entitled to overtime: How many hours do you work in a week/day?

• Step 2: Keep track of your hours, and compare them to your wage statements.  Are you being paid properly?

• Step 3: If you think you are being paid improperly, reach out to your employer's HR department to request the missing pay.

• Step 4: Use the contact form to request a free review of your issue by one of our professionals. 

 

 

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Notes and Exceptions

 

*Some Exemptions: Executive, administrative and professional employees; employees in the computer software field who are paid hourly and meet certain requirements; employees directly employed by the State or a political subdivision thereof, including any city, county or special district; outside salespersons; any individual participating in a national service program, such as AmeriCorps; drivers whose hours are regulated by the U.S Department of Transportation Code of Federal Regulation, Title 49, Sections 395.1 through 395.13; drivers whose hours are regulated by Title 13 of the California Code of Regulations, chapter 6.5, section 1200, et seq.; employees covered by a valid collective bargaining agreement if the agreement expressly provides for the wages, hours of work, and working conditions, and if the agreement provides premium wage rates for all overtime hours worked and a regular hourly rate of pay for those employees of not less than 30% more than the state minimum wage; employees (except minors) whose earnings exceed one and one-half times the minimum wage and more than half their compensation represents commissions; student nurses in a school accredited by the California Board of Registered Nursing or by the Board of Vocational Nurse and Psychiatric Technician Examiners; employees who have entered into a collective bargaining agreement under the Railway Labor Act; taxicab drivers; airline employees who work over 40 but not more than 60 hours during the workweek due to a temporary modification in their normal work schedule not required by the employer and arranged at the request of the employee; full-time carnival ride operators employed by a traveling carnival; crew members employed on a commercial fishing boat and subject to Fish and Game Code Section 7920, et seq.; professional actors; employees whose duties are exclusively those of a motion picture projectionist; an announcer, news editor, or chief engineer employed by a radio or television station in a city or town with a population of 25,000 or less; any employee who is engaged in work that is primarily intellectual, managerial, or creative, and which requires exercise of discretion and independent judgment, and for which the remuneration is not less than two times the monthly State minimum wage for full time employment (California Labor Code section 515); personal attendants not covered under the Domestic Worker Bill of Rights; any person under the age of 18 who is employed as a babysitter for a minor child of the employer in the employer's home.

 

**Some Exceptions: All employees subject to a validly adopted alternative workweek schedule (a. no overtime required for a regular schedule of not more than 10 hours per workday within a 40-hour workweek, b. one and one-half times the employee's regular rate of pay for any work in excess of the regularly scheduled hours in any workday beyond the schedule established by the agreement or those hours over 10 and up to 12 hours a day or beyond 40 hours per week. This requires payment of time and one-half for any work performed (up to eight hours) on any day not included in the schedule established by the agreement, c. double the employee's regular rate of pay for work in excess of 12 hours per day and any work in excess of eight on those days worked beyond the regularly scheduled number of workdays established by the agreement, d. if the employer requires an employee to work fewer hours than those that are regularly scheduled, the employer must pay the employee overtime at the rate of one and one-half times the employee's regular rate of pay for all hours worked in excess of eight hours, and, of course, double the employee's regular rate of pay for all hours worked in excess of 12 hours for the day the employee is required to work the reduced hours, e. an employee who works longer than eight hours but no more than 10 hours in a workday pursuant to an alternative workweek schedule, must be paid an overtime rate of not less than one and one-half times his or her regular rate of pay for any work in excess of the regularly scheduled hours established by the agreement); employees in the healthcare industry who are subject to a validly adopted alternative workweek schedule (a validly adopted alternative workweek schedule that provides for workdays exceeding 10 hours but not more than 12 hours within a 40-hour workweek without the payment of overtime, provided that: a. an employee who works beyond 12 hours in a workday must be paid overtime at double the employee's rate of pay for all hours in excess of 12; and b. an employee who works in excess of 40 hours in a workweek must be paid overtime at one and one-half times the employee's regular rate of pay for all hours worked over 40 in the workweek); employees of a hospital or an establishment which is an institution primarily engaged in the care of the sick, the aged, or the mentally ill or defective who reside on the premises (employees working in accordance with a 14 consecutive day work period in lieu of a workweek of seven consecutive days must be paid one and one-half times their regular rate of pay for hours worked in excess of eight in a workday and 80 in the 14-day period. Such an arrangement must be pursuant to an agreement or understanding arrived at between the employer and employee. Double time is required after 12 in a workday (California Labor Code section 510)); camp counselor (no daily overtime. Weekly overtime required after 54 hours or more than six days in a workweek. In an emergency, employee may work over 54 hours or more than six days in a workweek and must be paid not less than one and one-half times employee's regular rate of pay for all such excess hours. No double time required); personal attendants employed by a non-profit organization (no daily overtime, or overtime required after 40 hours or more than six days in a workweek; however, in an emergency, employee may work over 40 hours or more than six days in a workweek and must be paid not less than one and one-half times employee's regular rate of pay for all such excess hours and no double time required); Resident managers of homes for the aged having less than eight beds (no daily overtime, or overtime required after more than 40 hours or more than six days in a workweek; however, in an emergency, employee may work over 40 hours or more than six days in a workweek and must be paid not less than one and one-half times employee's regular rate of pay for all such excess hours, and no double time required); employees directly responsible for children under 18 receiving 24-hour residential care (a. time and one-half for all hours in excess of 40 in a workweek, and if employee works more than 16 hours in a workday, must be paid two times employee's regular rate of pay for all such excess hours, b. employee shall be paid two times his or her regular rate of pay for all hours in excess of 48 in a workweek); ambulance drivers and attendants scheduled for 24-hour shifts who have agreed in writing to exclude from daily time worked not more than three meal periods of not more than one hour each and a regularly scheduled uninterrupted sleeping period of up to eight hours (no daily overtime required); employees of a ski establishment during any month when Alpine or Nordic skiing activities are being conducted (a. employee may have a regularly scheduled workweek of not more than 48 hours, b. employee shall be paid not less than one and one-half his or her regular rate of pay for any hours worked in excess of 10 in a workday or 48 in a workweek); extra players (one and one-half times the extra player's rate of pay for the ninth (9th) and tenth (10th) hours of work in a workday, and not less than double the extra player's rate of pay for all hours worked in excess of 10 in a workday, computed in units of one-tenth (1/10) hours); minors, except those who are 16 and 17 years old who are not required by law to attend school (one and one-half times the minor's regular rate of pay for all hours worked on the (6th) consecutive workday); sheepherders, irrigators in agricultural occupations during any week in which more than half of the employee's working time is devoted to performing the duties of an irrigator, licensed crew members on commercial fishing vessels (new overtime thresholds will be phased-in as described above until they reach 8 hours per day and 40 hours per week by 2022 (for employers of more than 25 employees) or by 2025 (for employers of 25 or fewer employees)); live-in employees (a. live-in employees who are required or permitted to work (i) during the three scheduled off-duty hours that fall within the 12-hour span of work; or (ii) during the 12 consecutive off-duty hours in a workday, must be paid overtime at the rate of one and one-half the employee's regular rate of pay for all such hours worked, b. live in employees who work in excess of five workdays in a workweek must be paid overtime at the rate of one and one-half times the employees regular rate of pay for hours worked up to and including nine hours on the sixth (6th) and seventh (7th) workdays, and two times the employee's regular rate of pay for all hours worked in excess of nine hours on the sixth (6th) and seventh (7th) workdays (these exceptions would have to be harmonized with the Domestic Worker Bill of Rights)); non-Live-in employees who are not otherwise exempt/excluded from overtime laws (no overtime pay is required on the seventh (7th) consecutive day of work in a workweek when the total hours of employment during such workweek do not exceed 30 and the total hours of employment in any one workday thereof do not exceed six).