California Overtime Laws

One significant topic of discussion in the realm of employee rights in California is regarding overtime hours. In 2024, these laws continue to offer important protections for employees by defining who is qualified to receive overtime pay, how these hours are calculated in a shift, and what rate of pay each employee can expect to receive for working longer than normal. Learning more about California overtime laws can help ensure your rights are protected at all times.

Who Qualifies for Overtime in California?

California overtime laws are incredibly comprehensive. They cover a large majority of California’s working base across many different industries. Generally speaking, non-exempt employees are eligible for overtime. These are employees who are not salaried, but are instead paid by the hour. However, there are some exceptions that apply to this rule that are important to understand.

For instance, certain executives or administrative employees who earn above a specific salary threshold might have it written in their employee contract that they are forfeiting their right to overtime pay in exchange for a generous salary.

Other workers, such as third-party salespeople, independent contractors, and even some agricultural employees, could also find themselves exempt from California overtime pay. It’s incredibly important for employers to understand these nuances to avoid misclassifying an employee that puts them at risk of facing legal violations.

When Overtime Pay Kicks In

California overtime laws require that all eligible employees start receiving overtime pay in two different situations:

1. Anyone who begins to work more than 8 hours in a single day.
2. Anyone who works more than 40 hours in a single workweek.

In addition to traditional overtime pay, California also offers double-time pay for employees who work long enough to qualify for this as well. This would include anyone who works more than 12 hours in a day or over 8 hours for seven consecutive days of a workweek. When this happens, the employee is entitled to double their regular pay rate. This is in contrast with federal laws that focus on weekly hours, making California a very worker-friendly state.

Calculating Overtime Pay Rates

All non-exempt employees can expect to have their overtime pay calculated in the same universal manner. This includes:

• 5x their regular hourly rate for any time spent beyond 8 hours of work in a day or 40 in one week.
• 2x their regular hourly rate for any work over 12 hours in one day or beyond 8 on the seventh consecutive workday.

It’s important to also note that California includes bonuses, shift differentials, and other creative forms of incentive pay into the calculation of an employee’s “regular rate.” This means that overtime pay might exceed their simple hourly rate when entering overtime hours for certain employees that fall into these categories.

Penalties for Overtime Violations

Any employer who is found guilty of failing to comply with California overtime laws will risk facing a number of penalties. These penalties were designed by the state to protect workers from unlawful labor practices and ensure they receive the compensation they deserve for their hard work. Some potential penalties include:

Back Wages and Interest

Employers who violate overtime laws are typically required to pay employees for the overtime pay they were originally denied. Depending on the circumstances, interest could be applied to this amount from the date the wages should have been paid.

Liquidated Damages

When an employee is entitled to liquidated damages, it means that the employer owes them an amount that is equal to the unpaid overtime wages. This essentially doubles the financial burden for the employer, serving as a deterrent for not being wage compliant.

Bans on Doing Business

In extreme cases, California’s labor department has the right to ban certain organizations from doing business in the state. While it’s rare, this penalty exists. Employers who are caught violating overtime hours multiple times are the most vulnerable to this penalty.

FAQs

Q: How Does California Handle Overtime for Work-From-Home Employees?

A: Any employee in California who works remotely is generally subjected to the same overtime rules that apply to those who work on-site. They also will receive overtime pay for working more than 8 hours in a single day. Since remote employees are afforded a ton of trust, it’s important for them to keep a very detailed and accurate method of tracking their work hours. This includes any breaks they take to prevent unauthorized overtime work qualifying for extra pay.

Q: Are Bonuses Included in Overtime Calculations in California?

A: Yes, bonuses and other similar incentives can be calculated into overtime pay. Anytime an employee receives this type of performance-based bonus, it impacts their “regular rate of pay.” It’s this regular rate of pay that is used to determine their overtime rate. If an employer does not conduct the due diligence of making sure all qualifying forms of compensation, like bonuses, are accounted for during overtime calculations, they risk violating overtime law.

Q: What Are the Responsibilities of an Employer Regarding Overtime in California?

A: Employers have many different responsibilities to ensure they remain compliant with overtime laws, like accurately tracking how much their employees work to ensure all overtime work is accounted for and paid. Employers are also responsible for ensuring overtime policies are clearly communicated to avoid any accusations that they were purposefully vague on how overtime works at their company to get away with paying their employees less.

Q: What Should Employees Do If They Believe They Are Not Receiving Proper Overtime Pay?

A: If an employee believes they are not being paid correctly for how much extra time they’ve spent working, they should first review their own pay records and confirm if they have met California’s overtime thresholds. Any discrepancies should be brought to the attention of their HR department or direct manager. If the company itself will not resolve the issue, they should feel empowered to seek assistance from an employment attorney to start a case.

Contact Aitken Campbell Heikaus Weaver, LLP Today

If you believe your employer is denying your right to overtime pay that you worked hard for, it’s time you get in touch with the overtime law attorneys at Aitken Campbell Heikaus Weaver, LLP. We have seen the many different ways an employer tries to deny employees their right to this extra compensation, and we would be honored to take on your case and help you. Contact us today to begin.