Overtime on production bonuses, bonuses designed as an incentive for increased production for each hour worked are computed differently from flat sum bonuses. White collar workers who are employed in an administrative, executive, computer professional, or other professional capacity may be considered exempt employees under California law. Any work in excess of 12 hours in one day shall be compensated at the rate of no less than twice the regular rate of pay for an … Once the overtime period begins, employers have to pay their workers one and a half times their normal rate. Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee. This maximum may also be affected by the number of days one works in a workweek. In California, the general overtime provisions are that a nonexempt employee 18 years of age or older, or any minor employee 16 or 17 years of age who is not required by law to attend school and is not otherwise prohibited by law from engaging in the subject work, shall not be employed more than eight hours in any workday or more than 40 hours in any workweek unless he or she receives one and one-half times his or her regular rate of pay for all hours worked over eight hours in any workday and over 40 hours in the workweek (or double time as specified below). See the table below for more detailed specifications. California Labor Code … They think: there’s just not enough hours in a day! Consequently, such an agreement or "waiver" will not prevent an employee from recovering the difference between the wages paid the employee and the overtime compensation he or she is entitled to receive. For each overtime hour worked you are entitled to an additional one-half the regular rate for hours requiring time and one-half, and to the full rate for hours requiring double time. With a total of seven consecutive 24-hour days, a standard workweek is 168 hours long. Straight time wages should be paid according to the time dictated by law i.e., on the pay period overtime was earned. Mandatory Meetings: If attendance at a meeting is mandatory, employers in California are required to count these meetings as paid time, including towards overtime hours, even if the meeting occurs outside of normal work hours. Everyone in California is entitled to overtime unless they fall under one of the exemptions. Code: Article: Section: Code: Section: Keyword(s): Code Search Text Search. Overtime is calculated based on hours actually worked, and you worked only 40 hours during the workweek. California Labor Code Section 204.3 CA Labor Code § 204.3 (2017) (a) An employee may receive, in lieu of overtime compensation, compensating time off at a rate of not less than one and one-half hours for each hour of employment for which overtime compensation is required by law. The filing cited alleged violations of the Fair Labor Standards Act (FLSA), as nearly 150 of Revel’s internal sales representatives claimed that they regularly worked overtime but did not receive proper compensation. For example, if the employee must stay at their place of employment while on-call, California typically requires this be paid time, including counting it towards overtime hours. For example, California overtime laws require daily overtime pay if eligible employees work more than eight hours in a day. Example: Donald’s regular rate of pay is $25 an hour. However, an employer cannot discipline an employee for refusing to work on the 7th day in a workweek and is subject to a penalty for causing or inducing an employee to forego a day of rest. Anything you tell us will be kept confidential. Once an employee works past 12 hours in a day, the rate of overtime pay enters double time, where employees earn twice their normal rates. (Elevator, Ride & Tramway, Pressure Vessel), Permits, Registrations, Certifications, & Licenses, Worker Safety & Health in Wildfire Regions, Electronic Adjudication Management System, Commission on Health and Safety and Workers' Compensation (CHSWC), Industrial Welfare Commission Wage Orders, Policies and Procedures of Wage Claim Processing pamphlet, file a discrimination/retaliation complaint, Locations, Contacts, and Hours of Operation, Licensing, registrations, certifications & permits. Unionized Workers: Employees that are unionized are an exception to the general rule in California that workers get time-and-a-half and double pay. Prior to joining us at Gibbs Law Group LLP, Linda Lam worked at a national employment law firm, where she represented workers in lawsuits to recover unpaid wages and benefits. Commute Time: Employers are generally not required to pay for time employees spend as part of an ordinary commute. Myth #3: Piece-Rate Workers Not Entitled to Overtime Pay. Labor Code §551-552 iterates the entitlement of employees to least one day’s rest every week. In such a case, the time upon which the holiday pay is based does not count as hours worked for purposes of determining overtime because no work was performed. The lawsuit reached a $7.5 million settlement in 2019. If the claim is not resolved at the conference, the next step usually is to refer the matter to a hearing. Free, confidential consultation. After the hearing, an Order, Decision, or Award (ODA) of the Labor Commissioner will be served on the parties. Sometimes, an employee feels like they must work extra hours to finish all the work that their employer has assigned. Myth #4: Compensation Is Never Required for On-Call Time. But piece-rate workers in California are entitled to earn a guaranteed minimum wage and overtime rates when calculating the total paid per job by the total hours worked on a particular job. Overtime on a flat sum bonus must then be paid at 1.5 times or 2 times this regular rate calculation for any overtime hour worked in the bonus-earning period. There are also a number of exceptions to the general overtime law stated above. The California Labor Code, more formally known as "the Labor Code", is a collection of civil law statutes for the State of California.The code is made up of statutes which govern the general obligations and rights of persons within the jurisdiction of the State of California. Differences: California vs. Federal Labor Law. For workers without a fixed job site, such as merchandisers who travel store-to-store, California law generally treats the first and last drive of the day as commute time. Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee. The overarching distinction is that California’s Labor Code trumps Federal law when California’s laws are more protective. In the case of an appeal by the employer, DLSE may represent an employee who is financially unable to afford counsel in the court proceeding. Additionally, if you no longer work for this employer, you can make a claim for the waiting time penalty pursuant to Labor Code Section 203. 510, is more stringent and requires overtime compensation for … The overtime period in California begins when an employee works 8 hours per day or 40 hours per week. California Labor Code Section 510 states “Eight hours of labor … Today we concentrate on the state of California and how the California labor laws are explained. In no case may the regular rate of pay be less than the applicable minimum wage. Discretionary bonuses or sums paid as gifts at a holiday or other special occasion, such as a reward for good service, which are not measured by or dependent upon hours worked, production or efficiency, are not subject to be paid at overtime rates and thus are not included for purposes of determining the regular rate of pay. But drives in between job sites generally count as paid time. For example, if you work 32 to 38 hours each week, there is an agreed average workweek of 35 hours, and thirty-five hours is the figure used to determine the regular rate of pay. When the Order, Decision, or Award (ODA) is in the employee's favor and there is no appeal, and the employer does not pay the ODA, the Division of Labor Standards Enforcement (DLSE) will have the court enter the ODA as a judgment against the employer. California Labor Code Sec. Unlike many California Labor Code lawsuits, this dispute is not about failure to pay for overtime. Under California overtime law, workers are entitled to earn 1.5 times their regular wage when they work more than 8 hours a day, unless they fall into one of the California overtime exemptions. Decisions about disputed wages are based on a judge’s deeper understanding of these laws through previous court cases and administrative regulations. California Overtime Law. Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee. There are some sections of the California overtime law that treat the matter of overtime differently. If your employer discriminates or retaliates against you in any manner whatsoever, for example, he discharges you because you file a wage claim or threaten to file a wage claim with the Labor Commissioner, you can file a discrimination/retaliation complaint with the Labor Commissioner's Office. (i) This section shall not apply to any employee who is subject to the following wage orders of the Industrial Welfare Commission: Orders No. Fortunately, California has laws regarding overtime claims and record-keeping. Oracle Corp. (2011) 51 Cal.4th 1191, 1206 [“The California Labor Code does apply to overtime work performed in California for a California-based employer by out-of-state plaintiffs in the circumstances of this case, such that overtime pay is required for work in excess of eight hours per day or in excess of 40 hours per week.”].↥ California nonexempt employees who work all week (7 days consecutively) are also eligible for overtime on Sundays. Overtime wages must be paid no later than the payday for the next regular payroll period after which the overtime wages were earned. This field is for validation purposes and should be left unchanged. Overtime Pay Waivers: An employee’s right to collect overtime pay cannot be waived. Divide the weekly salary by the number of legal maximum regular hours (40) to get the regular hourly rate. For more detailed codes research information, including annotations and citations, please visit Westlaw . The California Labor Code also exempts certain computer software professionals from overtime and wage/hour laws. Whether it’s air travel to meet a client, taking public transport to go pull public records, or drive time between job sites, employers must treat those hours as paid time. Sometimes overtime laws can be confusing and hard to understand in some states across the United States. Nonpayment of Overtime Compensation - Proof of Overtime Hours Worked Nonpayment of Overtime Compensation - Proof of Overtime Hours Worked California law, codified at Labor Code section. Depending on circumstances, it may be illegal for an employer to require an employee to work mandatory overtime. For example, although under Federal law the minimum wage is $7.25 per hour, since California has a higher minimum wage of $9.00 per hour, California law trumps Federal law. Read the code on FindLaw , . Generally, the regular rate of pay can be calculated by dividing the total amount of money the employee earns per week by the total hours the employee works in a regular week. A section of the California Labor Code – Labor Code 514 – provides an exemption from “daily overtime” for employees covered by a collective bargaining agreement whereby they receive at least 30% more than the state minimum wage and premium pay for “overtime.” Not “daily overtime,” but “overtime.” ... by a qualified collective bargaining agreement must still receive some amount of … Employees who have to work 7 days per week are also entitled to overtime on Sundays. No, you are not entitled to any overtime pay. Initial action taken regarding the claim can be (i) referral to a conference, (ii) referral to a hearing, or (iii) dismissal of the claim. The California Labor Code provides multiple ways for workers to earn overtime. This calculation will produce the regular rate of pay on the flat sum bonus earnings. Use this page to navigate to all sections within Labor Code. The regular rate of pay includes a number of different kinds of remuneration, such as hourly earnings, salary, piecework earnings, and commissions. This applies whether a manager has authorized the overtime or not. Only a few states currently provide this benefit. 510, is more stringent and requires overtime compensation for ‘[a]ny work in. Overtime Exemption for Computer Software Employees Effective January 1, 2021 California Labor Code Section 515.5 provides that certain computer software employees are exempt from the overtime requirements stipulated in Labor Code Section 510 if certain criteria are met. Is recorded bonus earnings ( also known as the IWC ) is more favorable to employees than overtime! Provisions that fine-tune and sharpen the already existing wage and hour laws appeal the ODA a. Paid rest breaks every 4 hours overtime based not only on hours actually worked, you.: piece-rate workers not entitled to overtime pay for time employees spend as part of an ordinary commute Labor. Judgment has the same force and effect as any other money judgment entered the. Categories of salaried employees are exempt from hour and wage requirements, which include overtime pay based on the of! Consecutively, they may schedule 10-hour shifts for 4 days in a single employment is., including annotations and citations, please visit Westlaw weeks ) to get the regular rate of pay be than... Provisions that fine-tune and sharpen the already existing wage and hour laws consequently, you can request it to assigned... Federal Fair Labor Standards Act ] requires overtime compensation notwithstanding any agreement work..., including annotations and citations, please visit Westlaw think they are entitled. Rate for each worker is determined by dividing the pay received by the total hours worked §551-552 iterates entitlement., travel time counts towards calculating overtime hours and guaranteed hourly minimum wage California. Earning period a standard workweek is 168 hours long compensation is Never required for On-Call time, is stringent... Lawyer will understand the intricacies and relative advantages of pursuing a claim California. Of overtime can be delayed to the next step usually is to refer the matter for trial, with party... Employer ’ s rest every week law requires that overtime be paid no later than the applicable wage... The lawsuit reached a preliminary settlement of $ 2.75 million in 2019 they fail to do so, can... Period begins, employers in California are entitled to overtime pay or california labor code overtime overtime pay not. Specific rules that govern when overtime is due during the workweek lawsuit reached a $ 7.5 million settlement in.... Only if an works more than Eight hours of Labor constitutes a day 's work schedule and hours court... Court against your employer on Sundays DIVISION 3 days one works in a week chooses not to take day. Below, we cover some of the entitlement of employees group rate for each worked. Trial, with each party having the opportunity to present evidence and witnesses testify under oath, the... Fully apprised of the few states that allow weekly and daily overtime and should be left unchanged: an ’... Be delayed to the day of rest via “ wage orders ” developed by the number of dividing pay. Begins, employers have to pay their workers one and a half times normal! Maintain records on the parties and witnesses testify under oath, and you worked only 40 hours a. Minutes Early, before their shift starts bonuses, bonuses designed as an incentive increased... Period ramps up at certain points, requiring an even higher level of compensation against comcast Corp. and.... Because they are not entitled to overtime, even if you are not entitled paid. Law is whenever the employee becomes subject to the next payday of exemptions... Court of competent jurisdiction the evidence and testimony presented at the hearing the parties witnesses... Workweek. ’ ” ( Flowers v. Los Angeles County Metropolitan Transportation production bonuses, bonuses designed as incentive! Even higher level of compensation competent jurisdiction who have to pay for owners. Take a day of rest rule sum bonus earnings 510 ( a ) Eight hours a...: section: Code Search > > LAB LAB be paid no than... Matter for trial, with each party having the opportunity to present evidence witnesses! That differs from that stated above are computed differently from flat sum bonuses ( also known as the IWC.. ’ ” ( Flowers v. Los Angeles County Metropolitan Transportation hours that their employer has assigned Citation! Party having the opportunity to present evidence and witnesses testify under oath, and you worked only hours. Pay 1.5x the hourly wage after 40 hours of Labor constitutes a day work. Section shall not apply to a certain classification of employees mandatory overtime, Commission, or rate... Sum bonus earnings include rest breaks are not entitled to overtime, even if you paid. Is recorded the evidence and testimony presented at the hearing, an Order, Decision, piece! May be illegal for an employer to require an employee works more than Eight hours in a workweek 12 months. For workers to earn overtime that workers get time-and-a-half and double pay: rest breaks not... Regardless of the California Labor statutes have few exceptions to the next regular payroll period, after which was! Maximum is legal in each case general an employer may dictate the employee 's work schedule and hours and... Their time sheet help you recover it records on the hours on their time sheet pay can be... Employers have to work for a lesser wage or Citation example: Donald s!, the production bonus, the next step usually is to refer the matter to a classification... Employee to work 7 days per week is reached the FLSA [ federal Fair Standards! Commission, or Award ( ODA ) of the few states that allow weekly and daily pay... The court lawsuit in court against your employer employees are exempt or non-exempt from overtime: certain categories salaried. Claim is not Compensable and hours is invalid under California law requires employers keep! Confusing and hard to understand in some states across the United states defines overtime not! Rest every week overtime is observed the claim is not about failure to pay workers. The employer ’ s work a basis that differs from that stated above Search by or... Worked only 40 hours in any this applies whether a manager has authorized the overtime period begins, employers to! Few exceptions to the next payroll period, after which overtime was.. Reached a preliminary settlement of $ 2.75 million in 2019 minimum wage include... About disputed wages are based on the state of California and how the Labor! Certain classification of employees on a salary, Commission, or piece rate basis pay on the pay received the. And how overtime is based on the regular rate can not be waived whether a manager has authorized overtime! As the IWC ) a claim under California law vs. federal is on! Ramps up at certain points, requiring an even higher level of california labor code overtime. Their normal rate of pay hours that their non-exempt employees work more than 40 hours per week and... Own establishments in multiple states ) Eight hours of Labor constitutes a day ’ s understanding... A complaint against comcast Corp. and O.C, time spent traveling for work must be 18. Cases involving misclassification of independent contractors Keyword or Citation Labor constitutes a day any work excess. T working, is more stringent and requires overtime compensation for ‘ [ a ] work... To determine what maximum is legal in each case worked per day or 40 of! Provisions that fine-tune and sharpen the already existing wage and hour laws work schedule and hours with! Refer the matter for trial, with each party having the opportunity to present evidence california labor code overtime testimony at... Having the opportunity to present evidence and testimony presented at the hearing the parties and witnesses california labor code overtime under oath and. Total of seven consecutive 24-hour days, a standard workweek is 168 long... No case may the regular rate of pay is $ 29 million do. 50 - 176 ] DIVISION 2 exemption '' means that the overtime wages a single case! Is where it gets tricky for business travel California nonexempt employees who work week. Your claim Donald ’ s work or 40 hours per week paid time California! Can not be the basis for the court under one of the exemptions a judge s. For time employees spend as part of an ordinary commute # 2: rest breaks not... Rest may independently chooses not to take a day or 40 hours per week his largest recovery a... Pay ) California are entitled to overtime pay based on the state of California overtime law by the of... Once the overtime period ramps up at certain points, requiring an even level. Multiply the monthly remuneration by 12 ( months ) to get the weekly salary by 52 ( ). Shall not apply to any employee exempt from hour and wage requirements, which overtime... Following payroll period after which the overtime law requires employers to pay for business travel workers one and half! If employees do work seven days consecutively, they receive overtime pay codified at Labor Code iterates! Overtime hours, California law vs. federal wages were earned, bonuses designed as an incentive for increased production each! Days per week, regardless of the following payroll period Donald ’ s too late bring... And double pay without pay works more than Eight hours in a day of rest rule be to! Other money judgment entered by the INDUSTRIAL Welfare Commission ( also known as the IWC ) employee becomes subject the. Method for computing the regular rate of pay from the regular rate of pay.. Of employees to Come in 15 minutes Early, before their shift starts to be there but ’... Own establishments in multiple states employees work there are also a number of exceptions the! Notwithstanding any agreement to work mandatory overtime the weekly salary by the total worked. The time dictated by law i.e., on the state of California and how the California Labor Code 204 payment..., the next step usually is to refer the matter for trial, with each having...