In California, the state government's Department of Industrial Relations administers its state labor laws. California employers are required to follow both federal labor laws and California state labor laws. Employers must provide nonexempt employees with overtime compensation for overtime work. California employees may file wage complaints with their local Division of Labor Standards Enforcement office or pursue private lawsuits against non-compliant employers.
The Federal Labor Standards Act and Overtime
The federal government's Department of Labor issues labor regulations for all covered employers. Employers must provide eligible employees with overtime compensation for overtime hours exceeding a standard workday or workweek. For FLSA purposes, employers must compensate employees who work over 40 hours weekly at time and a half for any hours in excess of the 40-hour limit. All states must follow these minimum federal overtime requirements. However, some states provide additional overtime rules and benefits for its employees.
California Standard Workday and Standard Workweek
California requires employers to pay overtime compensation for any work performed in excess of eight hours daily, 40 hours weekly or more than six days per week. Overtime pay for California is also time and a half the employee's hourly rate. California requires a different overtime calculation to determine pay rate for Californians working over 12 hours daily or more than eight hours daily for the seventh day of work. Employers must pay these employees overtime pay at twice the normal hourly rate earned by that employee.
Regular Rate of Pay and Overtime Calculation
California defines its regular rate of pay as the base rate plus any other compensation, such as commissions and any additional earnings. The hourly rate for non-overtime work must be at least the federal minimum wage amount or $7.25 hourly (as of 2010).
Wage Orders through the Industrial Welfare Commission
California issues Wage Orders to provide further wage and hour explanations to employers and employees. Although a typical workweek is 40 hours weekly and eight hours daily for overtime purposes, the state government considers alternative workweeks and still requires employers to pay overtime under these non-traditional work schedule arrangements. Employers may enter into agreements with their employees to use alternative workweek scheduling. These employees work four days' weekly, 10 hours daily or work three days weekly, 12 hours daily. These employers must still provide employees with any overtime pay in excess of California's standard policies at the rates legally required. Employers who require less than 40 hours weekly as normal workweeks do not have to compensate employees with the overtime premium pay unless the employees work over the 40-hour workweek minimum or the eight-hour daily threshold.
Salaried Employees
In addition to overtime pay for hourly employees, employers must pay all salaried employees overtime unless the federal government or state government considers them exempt. Typically, California's overtime laws exclude drivers, workers covered through collective bargaining agreements, airline and commercial fishing boat employees, and actors from the overtime pay requirements. Wage Order may exclude other categories of employees.
Seek California Legal Advice
Since laws may frequently change, you should not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your jurisdiction.
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