How Is Overtime Calculated in California?

Overtime calculated under California labor statutes applies to all non-exempt workers, and employers who fail to follow the law can be held liable. The rules vary depending on a number of factors – such as whether or not an employee is paid on an hourly basis or is on salary, what their job duties entail, scheduling and more.

What is “Overtime” in California and How Does it Apply?

The general statute requires that any employee who is not exempt (including domestic servants such as maids and gardeners) are to be paid overtime for all time he or she works in excess of 8 hours in a day or 40 hours per week. Primarily, overtime calculated for workers under these regulations apply to those workers who are paid an hourly wage; however, there are provisions those who are paid a daily rate, on a quota basis or who are on salary.

How is Overtime Calculated for Hourly Employees?

According to California labor statutes, an hourly employee who is exempt and works more than 8 hours in a day or 40 hours per week is entitled to:

• 150 percent of his/her regular rate of pay for all hours beyond 8 and through the end of 12 hours in a single day, and the first 8 hours of a shift on the seventh consecutive work day
• 200 percent of his/her regular rate of pay for all hours beyond 12 in a single day and over 8 hours on the seventh consecutive work day

How is Overtime Pay Calculated for Commissioned Employees?

For employees who are paid on a commission basis or by the piece, that figure is considered the worker’s “regular rate.” Therefore, these employees are entitled to 150 percent of their regular rate for the initial 4 hours of overtime and 200 percent for all time on the job beyond 12 hours per day.

Alternatively, the employer may take the worker’s earnings for the week in question and divide that figure by the total hours spent on the job. The same rules apply for all hours in excess of 8 per day or 40 per week.

How is Overtime Pay Calculated for Salaried Employees?

For non-exempt employees who are paid a fixed salary, the regular rate is calculated by multiplying the monthly salary by 12, than dividing that figure by 52 in order to determine weekly pay. The weekly remuneration is then divided by 40; the quotient is considered to be the salaried employee’s regular rate. Once this amount is determined, the same rules apply.

What Are the Exceptions?

Employees who are on an “alternative” schedule – such as 10 hour shifts, four days per week – are not entitled to overtime unless the total number of hours worked exceeds 40. Certain other employees are also exempt from standard overtime regulations, although their employers may be required to pay time-and-a-half or double time under certain circumstances that do not apply to most hourly, salaried or commissioned workers.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years in California, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now