Labor Code 510: California Overtime Pay, Exceptions, and Calculations

California Labor Code 510 outlines overtime pay rules, exemptions, and calculation methods, protecting employees from unfair wage practices and misclassification. This guide explains daily and weekly overtime, special worker protections, and the legal steps available if overtime pay is denied.

By Douglas Wade, Attorney

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Table of Contents

1. Introduction

2. The Fundamentals of Overtime Law: Labor Code 510

3. Extra Safety Measures for Specific Employees

4. How to Proceed If You Don’t Receive Overtime Pay

5. Conclusion

Introduction

California boasts some of the most lenient overtime regulations in the country. Employees who work more than the typical workweek are entitled to overtime pay. It is calculated as a multiple of their usual hourly rate (according to California Labor Code 510). The state’s overtime regulations must be followed by all companies, or else they risk having to pay workers not just extra but also heavy fines and other lawsuits from their workers.

The Fundamentals of Overtime Law: Labor Code 510

Workers who perform over eight hours of work a day or forty hours a week are eligible for overtime compensation (mandated by California Labor Code 510). It is equal to 1.5 times their usual rate of pay. For instance, you should receive $30 for the ninth through eleventh hours of labor if your typical rate of pay is $20 per hour and you put in an additional hour. In this case, the following formula is used to determine 1.5 times the usual rate of pay: Twenty dollars divided by two is equal to $10. $10 plus $20 is $30.

Not all people are eligible for overtime compensation under Labor Code 510. Learn about some of the overtime law’s exceptions by reading on.

1. Exempt Employees under Labor Code 510

Employees who are exempt from the overtime law are known as exempt employees.

Certain workers might be paid due to the character of their work. Many other safeguards provided by the California Labor Code 510, including the state’s overtime regulations, do not apply to these workers.

Those who work as supervisors or managers are typically (though not always) considered exempt employees. Professionals like physicians and attorneys are also examples of exempt personnel.

Employees in particular industries. Workers in specific areas, including transportation, fishing, and agriculture, are exempt from the overtime requirement.

Employees who are paid on a piece rate system. Workers who receive piece-rate compensation are not eligible for overtime compensation. The only exception is when they put in more than eight hours per day or forty hours per week.

An employee must fulfill specific requirements to be categorized as exempt. It includes receiving pay and carrying out specific job responsibilities.

All employees in California, by default, are assumed to be non-exempt. In the event of a disagreement, the employer must demonstrate that the worker is appropriately designated as exempt.

Some companies misclassify their workers as exempt employees. Their aim is to avoid paying overtime & other legal safeguards. It may lead to legal action and costly fines.

2. Overtime Compensation for Working Seven Days a Week

Employers are typically prohibited from requiring their workers to work in excess of six days a week, according to sections 551 & 552 of the California Labor Code. Out of seven days, employees have the right to one day off.

California Labor Code 510 is a boon to people who put in long, difficult days of work. This law guarantees these workers one day off throughout the same week.

Workers who work the initial eight hours of the seventh straight day of their week are required to get paid 1.5 times their regular rate. On the 7th day, the employee has the right to double pay if they put in over eight hours of work.

The court clarified in the Mendoza v. Nordstrom (2017) case. The mandatory day of rest must occur each calendar week rather than every seven days. A worker could put in up to 12 consecutive days of labor without losing the safeguards provided under Labor Code 510 of the California Law.

Section 554 of the California Labor Code lists specific exemptions to the general norm that calls for a day of rest. The following are a few employees to whom the legislation does not apply:

Workers are required in case of an emergency.
Employees whose duties involve preventing the destruction of property or life.
Personnel for common carriers, such as taxis, trucks, trains, etc.
Workers who are members of a union and whose collective bargaining agreement modifies their work schedule
Workers who operate trains;
Part-timers whose weekly working hours don’t exceed thirty hours or six hours each day.

3. Overtime Compensation: How to calculate

Depending on the particular situation, there are several methods used to calculate overtime compensation. The following explanation can be found on the website of the California Labor Commissioner.

That amount, which includes shift variations and the hourly amount of any non-hourly remuneration the employee has received, is the standard rate of pay if you get compensated on an hourly basis.

The normal rate, if you receive a salary, is established as follows:

To calculate the annual wage, multiply the monthly compensation by twelve.

The weekly wage can be calculated by dividing the annual income by fifty-two.

The standard hourly rate is calculated by dividing the weekly pay by the number of legitimate maximum normal hours (forty).

When calculating overtime, you can use either of the methods listed below to find your usual rate of pay if you get compensated by the commission or piece:

During the initial 4 overtime hours of a workday, you get paid one & a half times the standard rate, which is the commission or piece rate; additionally, you are given double time for any hours exceeding 12 in a day; or

Divide the total amount of money you made during the week at work, including overtime, by the total number of hours you performed during the week, including overtime. You have the right to one-half the ordinary rate for overtime hours and the full hourly rate for double time hours, respectively, for each hour of overtime that you work.

The standard rate of pay for piece workers can be calculated by dividing the total quantity of pieces made by the group by the number of members of the group, and then paying each member accordingly. The standard rate for each worker is calculated by dividing the amount of money earned by the number of hours worked, and it cannot be below the minimum wage.

The “weighted average” is the regular rate if you receive at least two different rates from the same company during the week. This is calculated by dividing the overall earnings for the week—including overtime hours—by the total number of hours performed during the week, including overtime hours.

Extra Safety Measures for Specific Employees

Certain employee classes are additionally granted special rights under California law. For example, contractors of domestic workers, including nannies and caretakers, are required under California Labor Code 1454 to pay overtime for every hour exceeding nine in a day or forty-five in a week.

Furthermore, the California Labor Code currently grants agricultural workers the majority of the same rights as non-agricultural laborers, including overtime compensation. (See Wage Order 14 (Industrial Welfare Commission) and California Labor Code 500 to 556 & 558.1).

For some employees, the formula used to determine overtime compensation may deviate slightly from the standard formula. For example, farmworkers’ usual rate of pay + any piece-rate income is used to determine their overtime compensation. Domestic workers’ usual rate of pay + any tips they get are used to determine their overtime compensation.

You should speak with a legal professional if you are unclear about how to figure out your overtime compensation.

How to Proceed If You Don’t Receive Overtime Pay

You should attempt to address the matter with your employer personally if you think they aren’t giving you overtime. Speaking with your manager or the human resources division will help you do this.

You cannot be forced to give up your entitlement to overtime by your employer. Forcing a California employee to give up their right to overtime is prohibited by California Labor Code 1194. The agreement is unenforceable; therefore, even if the boss coerces the worker into making it, the worker must still be paid overtime. The employee may be subject to further penalties, fees, and damages if the company retaliates against them for disclosing the illegal arrangement or for reporting about it.

You have the right to appeal to the California Department of Industrial Relations if you are unable to work out a solution with the company directly. DIR will evaluate the case to see if the employer has broken the law. It will look into the allegations and take the necessary steps.

You should discuss your concerns and decide on the best plan of action. It is best to get in touch with an attorney and set up an appointment right away.

Conclusion

The purpose of California’s overtime statute is to safeguard workers who put in over forty hours of work each week. You should attempt to address the matter with your employer personally if you think they are not paying you overtime. You may appeal to the California Department of Industrial Relations if you are unable to settle the matter amicably.

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Labor Code 510: California Overtime Pay, Exceptions, and Calculations

Introduction

The Fundamentals of Overtime Law: Labor Code 510

Extra Safety Measures for Specific Employees

How to Proceed If You Don’t Receive Overtime Pay

Conclusion

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