California overtime law dictates when and how an employee must be paid wages for overtime work. Under this law, employers must pay all eligible employees working in the state of California additional pay for the work done in excess of the standard 8 hours a day or 40 hours a week.
California defines overtime to be based on both hours worked per day and week. The overtime period begins when an employee works over 8 hours per workday or over 40 hours per workweek. If an employee must work 7 days a week, they are entitled to overtime pay as of the 7th day.
When an employee hits the overtime period, they are entitled to 1.5 times or even 2 times their regular pay.
|Total Time Worked||Overtime Rate|
|> 8 hours in a workday||1.5 x regular rate of pay|
|> 40 hours in a workweek||1.5 x regular rate of pay|
|First 8 hours on the 7th consecutive day of work||1.5 x regular rate of pay|
|> 12 hours in a workday||2 x regular rate of pay|
|> 8 hours on the 7th consecutive day of work||2 x regular rate of pay|
Employers are required to comply with both federal and state overtime regulations. However, if there are varying differences between the two, the employer must follow the set of rules that gives the most benefits to the employees.
A workday is defined to be 24 hours long and can start at any time during the day or night. The subsequent workday must then start at the same time.
Similarly, a workweek in California is 7 consecutive 24-hour periods or 168 consecutive hours. It can start on any day of the week as long as it is fixed and recurring.
Employees in CA are required to meet the following qualifications to be eligible for overtime pay:
As of 2020, overtime pay in CA should be based on the regular rate of pay and not the hourly wage. The regular rate of pay includes hourly pay and any other types of compensation they may receive like commissions, bonuses, and the value of meals and lodging.
If an employee receives two different rates of pay during a workweek, then the employer must use the average of the two to calculate overtime pay.
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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.