2024 How Is Overtime Calculated in California?

Employees who rely on hourly wages may be left wondering how overtime is calculated in California. Knowing that information can help them ensure they are paid properly. Employees who put in overtime count on the additional pay to offset their paychecks and help provide for their livelihoods. When an employer calculates overtime pay incorrectly, it can cause difficulties for employees in helping themselves or their families.

How Overtime Is Calculated in California

In accordance with the California Labor Code, any work that is done in excess of eight hours in a single workday, 40 hours in a single workweek, or seven days in a row in a single workweek may be considered overtime. It is typically calculated at 1.5 times the employee’s regular rate of pay.

Many different factors go into calculating a regular rate of pay, including your hourly earnings, your yearly salary, any commission work, and your piecework earnings, depending on the type of job that you have. Sometimes, overtime may be paid out as double time, but that only applies to employees who work more than 12 hours in a single workday or work over eight hours on their seventh consecutive workday.

Your employer will decide what constitutes a work week but is required to inform you of that information prior to employment.

Ineligibility for Overtime in California

Not every employee in California is eligible for overtime. Recognizing the distinction between eligible and ineligible employees can help ensure you are properly compensated. If you believe yourself eligible for overtime pay but aren’t receiving it, you may want to bring your concerns up to your employer or consult with an employment lawyer. Positions that may not be eligible for overtime include:

• Exempt employees. Exempt employees are typically executive, administrative, and professional employees who are paid considerably higher than minimum wage. For an employee to be exempt from overtime, they must be making at least twice the standard minimum wage as their annual salary. Some exempt workers include salespeople, computer development workers, and lawyers.
• Independent contractors. Some (legitimate) independent contractors may not be on the official payroll at the company they work for. They are typically paid for the work they do according to their contract and don’t engage in overtime hours.
• Union workers. Some union workers may not qualify for overtime, thanks to their union contracts. Unions may mandate that their employees’ salaries be higher than the state’s minimum wage. In addition, the union may outline additional details, such as overtime pay, that are specific to that union. While some union workers may qualify for overtime, it may only be through their union.

Many other jobs and careers may be ineligible for overtime due to the nature of their work, their impressive salaries, or their long hours. Some of these jobs include summer camp workers, live-in healthcare workers, professional actors, government employees, cab drivers, and certain software industry workers.

While these are the exceptions to earning overtime, most employees who receive an hourly wage are likely eligible to receive it. It is important to ensure you know how your employment is classified to understand how overtime wages may impact you.

FAQs

How Do I Calculate Overtime Pay in California?

Many factors are used to calculate overtime pay in California. If employees are working over eight hours a day, over 40 hours a week, or seven consecutive days in a row, they may be entitled to 1.5 of their regular rate of pay for the time that they spent over their regular hours. If an employee works 12 hours in a row, they may be entitled to double time.

What Should I Do If I Haven’t Been Paid for My Overtime Hours?

If you haven’t been paid for your overtime hours, be sure to document all your worked hours and bring this up to your employer. If your employer fails to resolve the issue, you may want to consult with an employment lawyer and see if you have enough to start developing a case for wage theft. Working with your lawyer, you could also file a complaint with the Division of Labor Standards Enforcement.

Do California Employers Pay Overtime After 40 Hours?

California employers pay overtime after 40 hours. It’s state law to pay employees at the rate of 1.5, their standard rate of pay for all extra hours worked past eight hours in a day and 40 hours in a week. This only applies if the employee is considered eligible for overtime. If you are concerned that your employer is taking advantage of you and manipulating your job to avoid paying you overtime, you may want to raise these concerns with an employment lawyer.

What Is the 8 and 80 Rule for Overtime in California?

The 8 and 80 rule for overtime in California is an exception that allows some employers to pay 1.5 the employee’s regular rate of pay for all hours worked past eight hours in a single workday and 80 hours in a 14-day period. This rule typically only applies to hospital workers and residential care employees who work difficult hours. The employee is allowed to use a 14-day work period.

Contact California Overtime Lawyer

Working overtime is very important to some workers. Many consider it a vital part of their wages. It is important to understand the nature of overtime, how it works, and how it applies to you as a California employee. If you are concerned about your overtime in any way, it is recommended that you reach out to an experienced employment lawyer who can inform you of how your overtime works and if you are receiving it properly.

At Shirazi Law Firm, PC, our legal team can help you make sure you aren’t being taken advantage of by your employer and help you determine if you are eligible for overtime. If it turns out you need legal help, we can help you build your case to the strongest possible version. Contact us to schedule a consultation today.