California Overtime Law: Rules, Exemptions, Pay Rates, and Worker Rights Explained

California overtime law requires non-exempt workers to receive extra pay for working beyond daily and weekly hour limits. Certain employees, including independent contractors and exempt workers, do not qualify for overtime based on legal standards.

By Douglas Wade, Attorney

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Table of Contents

Introduction

1. Is it possible for everyone to receive more money for putting in more hours?

2. When do the California laws requiring overtime apply?

3. How much does California pay for overtime?

4. When will I get paid for overtime?

5. What happens if I don’t get paid overtime by my employer?

6. If my company didn’t approve overtime initially, can I still get it?

7. Can I be made to work more hours by my employer?

8. Can I be forced by my employer to accept comp time money rather than overtime?

9. What’s my usual pay rate?

Introduction

According to California overtime law, non-exempt workers who put in more hours must be paid 1.5 times their regular rate. Sometimes workers who put in extra hours are paid twice as much.

Employees can complain to the Labor Commissioner if they are not paid for overtime. Employees may also sue their employer for wages that remain unpaid and legal costs in a wage & hour case.

1. Is it possible for everyone to receive more money for putting in more hours?

Only non-exempt workers in California are eligible for increased pay for putting in more hours under California overtime law. These workers must be:

18 years of age or
17 or 16 years old, and they are permitted to work in lieu of attending school.

The following workers are either exempt from overtime or are subject to specific overtime pay regulations:

Employees who are categorized as exempt
Outside salespeople
Workers covered by a collective bargaining contract who are unionized
Independent contractors
Workers with different workweek schedules
Some employees in the healthcare sector
24-hour daycare providers
Employees who live in the home
Non-resident household workers
Teams of ambulances operating around the clock
Some of the resident managers
Nonprofit personal attendants
Counselors at camp
Workers in the ski industry
Minors
“Additional players”
Workers in agriculture

These exemptions are detailed in the California overtime law statutes and related Wage Orders. The next section discusses each of the above professional exemptions.

Exempt workers

Exempt workers are not subject to California’s overtime regulations or other wage & hour rules that mandate meal or rest breaks.

Usually, employees need to do both in order to qualify as exempt employees:

Possess a “white collar” job, which entails executive, professional, or administrative responsibilities that call for the employee to use impartial discretion or judgment; and
Instead of being paid on an hourly basis, they must be paid a set salary that is at least twice the minimum wage of 40 hours per week for full-time employment in California. Businesses have to provide a minimum exempt pay of $68,640 annually (or $1,320 a week) by 2025.

Example: Maria works as a professional and is the supervisor of a small bookshop. She devotes all of her time to administration and management and has the power to hire and fire staff members as well as make purchasing decisions.

Maria makes $39,000 a year. The proprietors of the bookshop owe her overtime compensation each time she puts in more hours because this sum is less than the $68,640 minimum requirement for the professional overtime exemption.

Don’t forget that under California overtime law, hourly exempt workers still have to be compensated for each additional hour they work. But, unless the job contract specifies otherwise, their overtime compensation is equal to their base wage.

Outside salespeople

In California, outside salesmen who satisfy the following three requirements are not eligible for overtime compensation:

They’re at least eighteen;
They spend no less than half of their working hours away from their employer’s office; and
They offer contracts, services, goods, or the use of facilities.

Workers covered by a collective bargaining contract who are unionized

In California, unionized workers are not eligible for overtime compensation if the collective bargaining contract stipulates:

Wages, working conditions, and working hours; and
A standard hourly rate that is at least 30% more than the minimum wage in California; and
Rates of wages for working overtime

What if the collective bargaining contract doesn’t fulfill these three requirements? In that scenario, unionized workers are regarded as “non-exempt” and are entitled to overtime compensation in compliance with California’s wage & hour regulations.

Independent contractors

Under California overtime law, independent contractors aren’t eligible for overtime compensation. According to the law, an independent contractor includes a person who:

Provides a service in accordance with a contract of employment that stipulates that they will generate a specific outcome for a specific amount of money, and
Keeps authority over the methods used to achieve the goal.

In the context of the gig economy, independent freelancers are more prevalent than ever.

Workers with different workweek schedules

Lastly, employees whose employers have implemented an “alternative workweek plan” are exempt from the standard overtime restrictions in California. An alternate workweek plan is a formal contract between a group of workers and their company that workers are not entitled to overtime compensation for working a maximum of ten hours each day.

An alternate workweek schedule needs to be authorized by a secret vote of a minimum of two-thirds of the impacted employees in an area of employment in order to be a legitimate exception to California’s overtime regulations. Within thirty days, the employer is required to notify the Division of Labor Standards Enforcement of the alternate weekly schedule.

When overtime begins

Overtime is still due to employees:

If they put in more hours than what the alternate workweek schedule permits, or
If their workweek consists of over 40 hours.

Keep in mind that employers are not allowed to take adverse action against other employees because of their views on having a different workweek.

Some employees in the healthcare sector

Time-and-a-half overtime is paid to healthcare workers under alternative workweek contracts under Wage Orders Four and Five.

A shift lasting more than ten hours but not more than twelve in a workweek of forty hours; or
Over forty hours during a workweek.

For putting in more than 40 hours on a shift, these employees are paid double time overtime.

Healthcare professionals who live on-site, meanwhile, can consent to a 14-day workweek rather than a seven-day one. If they put in over eight hours a day along with more than eighty hours of work over the course of 14 days, they are eligible for time-and-a-half overtime. If workers put in over twelve hours on a weekday, they start receiving double-time pay.

24-hour daycare providers

Wage Order 5 states that live-in caretakers who work over forty hours per week are entitled to time-and-a-half overtime. Double time is necessary if you are putting in more than

A 16-hour shift, or
Forty-eight hours in a week of work

Employees who live in their homes

For hours worked on the 6^th and 7^th days of the workweek or during mandatory off-duty times, live-in employees are entitled to time and a half in accordance with Wage Order 15. On such days, double time begins when they put in over nine hours of work.

Non-resident household workers

Wage Order 15 of California overtime law states that non-resident household workers are not entitled to overtime for the seventh successive workday if:

They work no more than thirty hours a week overall, and
They labor no more than six hours a day in total.

Ambulance crews operate around the clock

As per Wage Orders 5 & 9 of California overtime law, ambulance crews doing 24-hour shifts are exempt from overtime if they have a written agreement to deduct the amount of time they work each day between

Three meals lasting an hour each, and
At least eight hours of sleep at a single time.

Some of the resident managers

Wage Order 5 exempts resident managers from daily overtime in establishments with fewer than eight beds. When they work over forty hours or a full 6 days in a workweek, even during emergencies, they should be paid time-and-a-half extra.

Nonprofit personal attendants

Nonprofit personal attendants who work over 40 hours or more than 6 days in a workweek—even during emergencies—are entitled to time-and-a-half extra pay according to Wage Order 5.

Counselors at camp

Wage Order 5 states that camp counselors must get time-and-a-half compensation for overtime rather than daily overtime.

More than fifty-four hours in a single week, or
More than six workdays every week.

Even in an emergency situation, this is applicable.

Workers in the ski industry

Employees at ski resorts may agree to programs up to forty-eight hours a week during busy ski months in accordance with Wage Order 10 until overtime is applied. If employees work over ten hours on a weekday or over forty-eight hours in a workweek, they are entitled to time-and-one-half overtime compensation.

Minors

When a minor works six consecutive workdays, they are entitled to time-and-a-half extra pay under Wage Order 12 of California overtime law. Those who are 16 or 17 years old and not legally obligated to attend school are exempt from this.

Extra players

The ninth or tenth hour of a workday is time-and-a-half compensation for “extras” in movies and television shows per Wage Order 12. Double-time overtime compensation, which is computed in one-tenth hourly increments, starts to be paid when an employee works over ten hours in a workday.

Workers in agriculture

Companies with twenty-five or fewer workers must pay overtime to agriculture workers (such as irrigators and sheepherders) beyond 9 hours per day or 50 hours a week per Wage Order 14. However, ordinary overtime pay regulations will be applied to them beginning in 2025.

For agricultural workers at businesses with twenty-six or more employees, regular overtime pay regulations already apply.

2. When do the California laws requiring overtime apply?

According to the hourly employee time clock regulations, non-exempt workers may be required to get overtime compensation if they put in more than:

Eight hours of work (or ten hours in a four-day “alternate workweek,” or twelve hours in a three-day “alternate workweek”); or
A workweek with 40 hours; or
Six consecutive days during a workweek

The following section goes over each of the overtime requirements. Keep in mind that employees cannot forfeit their entitlement to overtime compensation.

A workday that lasts longer than 8 hours

Non-exempt workers who put in over eight hours of work in one workday are typically eligible for overtime compensation. On the other hand, non-exempt workers may be eligible for overtime compensation if they put in more than ten hours on a single weekday under an alternate workweek plan. (In general, alternate workweeks consist of four 10-hour workdays, as was covered in the section above.)

A workday lasts from 12:01 in the morning until midnight, unless the employer specifies otherwise. Note that even if a person works over eight hours on one calendar day, they can still not be entitled to overtime if they split those hours over two separate workdays.

Example: Jack’s workday was planned by his employer to run from 4 pm to 3:59 pm. Jack works from noon to ten o’clock. Jack works 10 consecutive hours in a single calendar day, however, the initial four hours are from 12 pm to 3:59 pm on one workday, while the last six hours are from 4 pm to 9 pm on a different workday. Jack’s job doesn’t, therefore, qualify for overtime compensation.

Keep in mind that employers are not allowed to alter the start and end periods of the workday until there is a valid business reason. Keep in mind that even if a worker typically works eight or fewer hours a day, they are still eligible for overtime compensation if they work over 8 hours on a given workday.

Additionally, keep in mind that an individual who typically works less than eight hours per day is not eligible for overtime compensation if they work the entire eight hours. Up to eight hours of work, they would receive their regular pay.

Over forty hours in a week of work

Employees who are not exempt from overtime should be compensated for exceeding 40 hours during one workweek.

Employees are not automatically entitled to overtime if they work more than 40 hours in a week, regardless of whether those forty hours are spread across two different labor weeks:

Example: Monday is the first day of Moe’s workweek, which finishes on Sunday. Moe works Wed, Thurs, Fri, Sat, Sun, and Mon for eight hours each day:

Moe performed 48 hours during one week, but 40 of those hours were in a single workweek, and the remaining eight hours came in a completely separate workweek. Therefore, even though Moe worked over forty hours a week, he is not eligible for overtime.

Keep in mind that a worker’s daily overtime does not go toward their weekly total. This implies that even if a worker is currently earning overtime pay for working over eight hours for a workday, they must work a minimum of 40 hours at a standard hourly rate before they are eligible to receive extra for working over forty hours weekly.

This regulation prevents workers from getting double credit on their labor, a practice known as pyramiding.

Additionally, if someone works the entire 40 hours per week, they are not eligible for overtime compensation if they typically work less than 40 hours. They would receive their regular pay until they completed forty hours.

Over six days in a row during a workweek

In most cases, non-exempt workers who work seven days in a row within a workweek are eligible for overtime compensation.

Employers are in charge of determining the start time of their workweek, just like with workdays. Therefore, if a person works 7 days in succession during two different workweeks, they are not automatically entitled to overtime:

Example: Monday is the beginning of Moe’s workweek, which ends on Sunday. Moe used to work 8-hour days on Mon, Tue, Wed, Thurs, Fri, Sat, and Sun:

Moe labored for seven days in succession, although the last Monday and Tuesday were on a different week than the five days before. Moe does not, then, qualify for overtime compensation simply because he worked for seven days in succession.

Keep in mind that different employees may have varied workweeks assigned by their companies. Workweeks cannot be altered by employers in an attempt to avoid paying overtime.

3. How much does California pay for overtime?

“Time and a half” is the standard overtime rate of compensation in California. In other words, overtime is calculated at 1.5 times the employee’s usual salary.

In California, non-exempt workers receive time-and-a-half overtime compensation when they labor:

Within a workday, more than eight hours up to twelve hours; or
Above 40 hours per workweek;
The first eight hours of a workweek’s seventh straight day

However, when workers perform any of the following, companies are required to provide double-time salaries, which are twice the worker’s ordinary hourly salary rate:

Twelve hours or more in one workday, or
Seven consecutive workdays with more than 8 hours.

What is included in “hours worked”

Keep in mind that the following are included in the hours worked, in addition to the actual time devoted to working:

Break for meals only in the event that the worker is requested to work through the break or is permitted to do so;
Rest intervals, which typically last ten minutes for each four-hour period of work;
“On call” times unless the worker has enough time to report to work when called upon and is free to engage in personal activities (see more about standby pay);
Employment preparation time if it is essential and necessary for the work;
If the worker has to commute to a job location that is distant from their office, or if they are required to use employer-provided transport

4. When will I get paid for overtime?

By the second normal payday after the overtime work, employers are required to pay overtime. In this manner, businesses have more time to gather enough revenue to cover overtime compensation.

5. What happens if I don’t get paid overtime by my employer?

Workers who are entitled to overtime usually submit a wage claim to the Office of the Labor Commissioner, which is part of the DLSE (Division of Labor Standards Enforcement). Next, a Deputy Commissioner (Labor) will determine if:

Reject the claim
Send the case to a discussion so that the parties can try to settle the dispute without having to go to court. The conference’s time, date, and venue will be mailed to the parties.
Send the case to a hearing so that witnesses and both sides can provide oaths in a videotaped session. The parties will then get an ODA, which stands for the Labor Commissioner’s Order, Decision, or Award. ODAs may be challenged in a civil lawsuit proceeding. The DSLE can assist workers who cannot pay for an employment attorney in the event that the employer files an appeal.) In the event that an employer disregards a court decision requiring them to pay back wages, the employer will be found liable. The employee has two options: ask the DLSE to collect it or attempt to do it themselves.

Other options include filing a standard lawsuit against the company for unpaid overtime. If they break wage and hour legislation, an employer’s executives, owners, directors, and/or management agents could also face personal liability.

In the event that the employer retaliates

Employees have the right to sue their employers or submit a report to the Labor Commissioner’s Office if they are retaliated against for registering or threatening to submit a wage claim. It should be noted that waiting time penalties are also available to previous staff members who remain entitled to overtime compensation.

The most frequent complaints under California’s wage & hour law are about unpaid overtime. Some employers intentionally under-compensate (“wage theft”), while others do so only out of ignorance of the rules and regulations.

Employees who get overtime compensation cannot, in any case, forfeit their entitlement to it.

6. If my company didn’t approve overtime initially, can I still get it?

Indeed. In California, non-exempt workers who perform unauthorized overtime—that is, when their employer does not specifically instruct them to put in more hours—should be compensated for their time.

The only prerequisite is that the company should have been aware that the worker was putting in more hours.

However, if an employer works overtime without first obtaining permission, they may be disciplined. Additionally, workers cannot purposefully hide from their managers that they are putting in more hours.

Be aware that it is illegal for companies to request that their employees labor “off the clock.”

7. Can I be made to work more hours by my employer?

Yes. California’s overtime regulations often allow employers to mandate overtime, also known as “forced overtime.”

Employees who disobey their employers may face disciplinary action, which may include termination. Employees who refuse to go to work on the 7th day of a week are exempt from disciplinary action by their employers.

Employers are encouraged to hire additional workers in order to avoid paying overtime, which is one of the goals of regulations requiring overtime pay. This manner,

There are more people working.
These workers are not required to put in additional hours. And
Employers are spared from paying double or time-and-a-half rates.

8. Can I be forced by my employer to accept comp time money rather than overtime?

No, Californian workers are not required to take comp time, or paid time off, when they want to get overtime compensation. Employees may request comp time from their employer in lieu of overtime, nevertheless, if each of the following applies:

The worker has a full-time job and puts in 40 hours a week;
In lieu of overtime, the worker requested in writing that the company grant them comp time;
The worker’s total comp time has not yet exceeded 240 hours; and
The employer & employee had already reached a written agreement over comp time.

Moreover, the overtime rate and compensated time must coincide. In the event that the rate for overtime is time-and-a-half, the employer is required to provide an hour-and-a-half in PTO for every hour of overtime.

9. What’s my usual pay rate?

The employee’s hourly, piece-rate, or salaried status will determine this. A worker’s usual rate of compensation, with limited exceptions, cannot be less than the minimum wage in any event.

In California, overtime compensation is determined by the usual pay rate of the employees.

Hourly workers

For non-exempt, hourly workers, the hourly rate is usually the normal rate of pay. Therefore, if an individual makes $16.50 per hour, that is their usual rate of pay.

Consequently, their overtime compensation should be

$24.75 per hour (1.5 x $16.50) for time-and-half compensation, and
Double-time pay at $33 per hour (2 x $16.50).

The normal rate of pay for an employee is calculated by dividing their entire earnings (which includes overtime) by the whole number of hours they worked in a given workweek, even if the same company pays them more than two rates in a single workweek. This weighted average represents the worker’s usual salary.

Keep in mind that the regular pay rate is determined by shift differentials or/and the “per hour cost” for all non-hourly payments the employee has received.

Bonuses that are not discretionary

Hourly workers occasionally get a flat-sum, non-discretionary bonus. Non-discretionary incentives can be used as a retention incentive or to reward skill or time.

The normal rate of pay would be calculated by adding these bonuses to the hourly wage and dividing the result by the number of non-overtime hours completed.

Exclusions from the standard pay rate

The following are examples of payouts that are not included in the standard pay rate:

Discretionary bonuses
Gifts
Reimbursements for expenditures
Compensation during times when you don’t work (holidays, vacations, sick days, etc.
Premium compensation for work performed on weekends or holidays, provided that the compensation is at least 1.5 times that of comparable work performed during regular business hours.

Salaried workers

Salaried non-exempt workers can calculate their normal pay rate by dividing the weekly paycheck by the number of hours they put in (up to forty hours) that are not overtime. Therefore, an employee’s regular pay rate is $16.50 per hour if they work 40 hours every week and are paid $660 per week (660 divided by 40 hours).

To determine one’s weekly pay:

After multiplying the monthly wage by twelve months, divide the result by fifty-two weeks.

Commission-based and piece-rate workers

For piecework and commission workers, there are three primary methods for figuring out a regular rate of compensation in order to compute overtime:

The commission or piece rate.
The result of dividing the worker’s weekly salary by the number of hours they put in.
You may calculate the group rate by dividing the overall amount of pieces by the group size. After that, each employee is paid the group rate multiplied by the amount of hours they put in.

Then, the overtime hours performed are subject to the regular double-time and time-and-a-half rules.

Depending on their particular position, some employees receive varied pay from the same company. People who get over two rates are paid a “weighted average,” which is determined by dividing the total earnings for the workweek by the total number of hours spent.

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California Overtime Law: Rules, Exemptions, Pay Rates, and Worker Rights Explained

Introduction

1. Is it possible for everyone to receive more money for putting in more hours?

2. When do the California laws requiring overtime apply?

3. How much does California pay for overtime?

4. When will I get paid for overtime?

5. What happens if I don’t get paid overtime by my employer?

6. If my company didn’t approve overtime initially, can I still get it?

7. Can I be made to work more hours by my employer?

8. Can I be forced by my employer to accept comp time money rather than overtime?

9. What’s my usual pay rate?

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