In California, overtime is owed for nonexempt employees who work more than eight (8) hours in any workday or more than 40 hours in any workweek. Overtime means that the employee receives one and one-half times his or her regular pay for all hours over eight hours. Also, if you work more than six days, then overtime is owed for all hours. One and-one-half pay applies up to 12 hours in any workday. At twelve hours or more, then two times the regular rate of pay applies.
What is the regular rate of pay?
The regular pay rate is sometimes clear when a worker is paid, say, $20 per hour for the beginning hours, then $20 is the regular rate of pay. If an employee is paid on a non-hourly basis, then it needs to be adjusted to the hours worked to figure out the hourly rate of pay. For example, if you are paid a salary, then the annual salary can be determined by multiplying a monthly salary by 12. Or if the Annual salary is determined, then it needs to be divided by 52 weeks in a year and then 40 hours in a week.
What is the minimum wage?
Please note this was written in June 2023, and the minimum wage in California is constantly changing both at the state level and local (city or county) levels. Currently, the California minimum wage is $15.50 per hour. In San Jose, CA, the minimum wage is $17.00 per hour. Also, locally, $17.20 per hour is the minimum wage for Santa Clara. San Francisco is $16.99 per hour.
Also, for a list of cities with their own minimum wages above the state level:
Inventory of US City and County Minimum Wage Ordinances – UC Berkeley Labor Center
Can an Employee waive overtime?
According to the Department of Labor Standards and Enforcement, overtime cannot be waived. Furthermore, Labor Code Section 1194 says that employees cannot waive overtime compensation. Employers should make sure to track employees’ time and pay all overtime owed.
For more insights into what labor standards mandate beyond overtime, explore our blog on the California Private Attorneys General Act (PAGA).
Are Employers still required to pay overtime if the overtime is not authorized?
Yes, as long as the employee is permitted to work, then the overtime is owed. While an Employer could discipline an employee who works unauthorized overtime, the Employer still has to pay the overtime hours.
If you forget to pay an employee overtime, are there other penalties owed?
Yes. If an employee is not paid for their overtime, the employer may be subject to additional monetary penalties. If wages are owed after employment ends, then the employee would be entitled to penalties under Labor Code Section 203. Under Labor Code Section 203, then an employee gets his regular final rate of pay times the regular hours worked per workday times 30 days.
So, for $20/hr and working 8 hours a day, then the waiting time penalty would be $20/hr*8 hours *30 days, which equals $4,800.Understanding these employment laws can be complex; our business litigation services offer comprehensive legal support to navigate these issues.
