Code Regs., tit. The overtime period in California begins when an employee works 8 hours per day or 40 hours per week. Code of Regs., tit. The degree of control that the employer exercises over the employee while the employee is not working will usually determine whether the employer must pay overtime.92 If the employee is completely free to engage in personal activities while on call, the employee is not subject to the employer’s control and is thus not entitled to compensation.93, But if the employee has no opportunity to engage in personal activities while waiting to be called into work, the employee is subject to the employer’s control and is entitled to compensation.94. Whether the employer imposes an on-site living requirement; How much time the employee is given to report after being called in to work; Limits on the distance from the employer the employee is realistically free to travel while on call; The frequency with which the employee is called in to work; Whether the employee is free to trade on-call duties with other employees; and, Whether the employee actually engages in personal activities while on call., The employer knew or should have known that the employee was working.. 31 overtime hours due – 6 double overtime hours = 25 regular overtime hours due their unpaid overtime compensation . You can adjust the rate to anything you want or set a custom overtime hourly rate, and the time and a half calculator will calculate your total payment. A Closer Look at Some Common Overtime Issues. 1981) 646 F.2d 413. How to Calculate Overtime Pay in California, More than 40 hours worked in a workweek; and. The court in Seymore noted that the employer had established a single work schedule that began a Tuesday, while designating the “workweek” to begin on a Monday. 8, §§ 11010–11170, subds. 1242, 1245] [“The regular rate by its very nature must reflect all payments which the parties have agreed shall be received regularly during the workweek, exclusive of overtime payments.”]; Huntington Memorial Hospital v. Superior Court (2005) 131 Cal.App.4th 893, 903–904. 1(A)(1) [defining the executive exemption].↥, See, e.g., Cal. Review your pay practices to ensure that you are calculating and paying overtime in accordance with state and federal rules. How to calculate California’s overtime law and avoid legal issues. any wages of an employee who is discharged or who quits, the wages of the employee shall continue as a penalty from the due date thereof at the same rate until paid or until an action therefor is commenced; but the wages shall not continue for more than 30 days.”].↥. 8, §§ 11010–11170, subds. If the employee has more than 40 hours leftover, those additional hours must be paid at a rate of time-and-a-half., The compensating time off is provided pursuant to a written agreement between the employer and employee (or the employee’s union) before the performance of the work., The employee has not accrued more than 240 hours of comp time., The employee made a written request to the employer asking for compensating time off in lieu of overtime compensation., The employee is regularly scheduled to work no less than 40 hours in a workweek.. In California, a flat-sum bonus is generally considered to be a nondiscretionary bonus that does not increase or decrease based on the amount of time worked or production of the employee (for example, a $30 bonus for any employee who works Saturday, regardless of how many hours they work during the rest of the workweek). It should not be relied on as legal advice. 3(b)(8) [permitting alternative workweek schedules of three 12-hour days without requiring time-and-a-half pay].↥, Cal. and in an additional equal amount as liquidated damages.”].↥, Labor Code, § 203, subd. 3, 11150, subd. This easy and convenient tool will help employers and employees within the state of California to accurately calculate overtime hours worked. You can claim overtime if you are: A non-workman earning up to $2,600. . . Because overtime laws serve important goals, California courts interpret them liberally in favor of protecting employees.6 So when there are ambiguities about an overtime law, the courts will generally resolve them in the employee’s favor. (1)(C).↥, Cal. Step 3: Multiply the employee's overtime pay rate by the number of overtime hours. The content on this blog is "as is" and carries no warranties. § 218; Aguilar v. Ass’n for Retarded Citizens (1991) 234 Cal.App.3d 21, 34 [“[F]ederal law does not control unless it is more beneficial to employees than the state law.”].↥, United Parcel Service Wage & Hour Cases (2010) 190 Cal.App.4th 1001, 1010 [“In many respects, California law provides broader protection of employee rights, and in such instances, California law controls.”].↥, Sullivan v. Oracle Corp. (2011) 51 Cal.4th 1191, 1197 [“California’s overtime laws apply by their terms to all employment in the state . For example, courts have reached different conclusions about whether time spent changing into a uniform or donning special safety equipment counts as “hours worked.”104. (a).↥, Monzon v. Schaefer Ambulance Serv. Yes, California law requires that employers pay overtime, whether authorized or not, at the rate of one and one-half times the employee's regular rate of pay for all hours worked in excess of eight up to and including 12 hours in any workday, and for the first eight hours of work on the seventh consecutive day of work in a workweek, and double the employee's regular rate of pay for all hours worked in excess of 12 … To learn more about the process for bringing a claim for unpaid overtime, visit How to File a Wage & Hour Claim in California: The Ultimate Guide. 4th 833, 845–846.↥, Seymore v. Metson Marine, Inc. (2011) 194 Cal.App.4th 361, 369 [“[E]mployers may for bona fide business reasons establish an infinite variety of working schedules, including rotating and alternating schedules under which employees start at different times on different days.”], disapproved on other grounds by Mendiola v. CPS Security Solutions, Inc. (2015) 60 Cal. In addition to the 40 hour rule discussed above, workers who work more than eight hours in a workday must be paid at the rate of one and one-half times (1.5X) their regular rate of pay.This law is spelled out in Labor Code § 510 and the Wage Orders.. 8, § 11150, subd. In this case, there were 23 daily overtime hours/seventh-day hours and 31 weekly overtime hours so the employee is entitled to the greater of the two, or 31 overtime hours. § 207(e), which excludes certain kinds of compensation, such as discretionary bonuses and vacation pay, from the regular rate.↥, Huntington Memorial Hospital v. Superior Court (2005) 131 Cal.App.4th 893, 910 [The bottom line is this: An employer may not engage in a subterfuge or artifice designed to evade the overtime laws. Employees should obtain advice from an employment lawyer if they are not sure whether they are owed additional compensation for the time they spend preparing to work. More Than 40 Hours of Work in a Week Both the California Labor Law and the Federal Fair Labor Standards Act (FLSA) state that work performed in one workweek in excess of 40 hours is overtime. To qualify as an exempt employee, the worker must meet certain criteria established by California law. 71 total hours(71 total hours – 40 straight-time hours = 31 weekly overtime hours ). Are you curious whether you're calculating overtime correctly for a California employee? Code of Regs., tit. 8, § 11040, subd. 8, §§ 11010–11170, subds. 8, § 11040, subd. 43 total hours-40 straight time hours = 3 weekly overtime hours. They can: Employees have a right to hire an employment attorney to assist or advise them with any of these options. 8, §§ 11010–11170, subds. Both federal and state law allow an employee to recover unpaid overtime that the employee earned. Paying overtime is costly, so overtime laws encourage employers to divide up the workload among a reasonable number of workers. . What is The California Overtime Law and Requirements? )↥, Huntington Memorial Hospital v. Superior Court (2005) 131 Cal.App.4th 893, 910.↥, Labor Code, § 511; Cal. Here is an illustration of how overtime pyramiding can mistakenly occur: The problem in this example is that, beginning on the Thursday, all hours worked technically exceed 40 hours in the workweek even though many of those initial 40 hours were paid at an overtime rate. The employee works 9 hours each day Monday through Friday and then 13 hours each day on Saturday and Sunday. None of the employee’s daily overtime hours are credited toward their weekly overtime. The payment of higher wages for hours that exceed a normal amount of work serves two goals. Code of Regs., tit. To comply with state law, choose the greater of these two numbers as the total hours for which overtime pay is due. Because of these issues, overtime pyramiding is not permitted in California. is responsible for all communications made on this website. Snapshot of someone calculating their OT. Code Regs., tit. Likewise, the employer must pay for hours, including overtime hours, that: So, even if an employee engages in work that the employer did not authorize, the employer must nevertheless compensate the employee. Employee's double overtime pay rate = $29 (the regular rate of pay is $14.50). is an associate of Melmed Law Group P.C. 3.↥, Cal. (a) [requiring employees to “customarily and regularly exercises discretion and independent judgment in performing” the duties of their job].↥, See, e.g., Cal. Additionally, base rate calculations get complicated with commissions, bonuses, and other payments. You should use a step-by-step approach. For this example, let's assume we did the daily and weekly overtime analysis and determined the employee is entitled to a total of 10 overtime hours, all compensated at 1.5 times his regular rate of pay. Calculate overtime pay for a monthly-rated employee If you are a monthly-rated employee covered under Part IV of the Employment Act, use this calculator to find out your pay for working overtime. Employees who meet the requirements of an “outside salespersons” are a type of exempt employees.22 An outside salesperson is defined as someone: Union employees are sometimes exempt from California’s overtime laws.24 To qualify as exempt, the employee’s collective bargaining agreement must expressly provide for the wages, hours of work, and working conditions of the employee.25, The collective bargaining agreement must also provide premium wage rates for all overtime hours worked and a regular hourly rate of pay of at least 30 percent more than the state minimum wage.26. Resolving the dispute informally with the employer, Bring a claim for unpaid wages and penalties with a government agency.. What pay can be excluded when calculating the regular rate? But it can be used as a helpful illustration of the basic rules applicable to most hourly employees in California.3. . (a).↥, Huntington Memorial Hospital v. Superior Court (2005) 131 Cal.App.4th 893, 902 [“‘The purpose behind the overtime pay requirement is two-fold: (1) to spread employment by encouraging employers to avoid overtime work and thereby employ additional workers on a regular basis; and (2) where the employer prefers overtime work, to compensate the employee for the burden of working longer hours. The primary categories of employment that will allow a salaried employee to be classified as exempt are: To learn more about the classification (and misclassification) of exempt employees, including the job duties that apply to each category of exempt employment, visit Exempt vs. Nonexempt Employees: Guide to California Law. . 3.↥, Labor Code, § 515, subd. An employer cannot require an employee to take paid time off (compensating time or “comp time”) instead of being paid overtime.79 But an employee may only request comp time if all of the following conditions are met: If any of these conditions are not met, the employee must be paid the overtime rate they would otherwise be entitled to under the law.84, Compensating time must equal the overtime rate. The California Labor Codes 551 and 552 prescribe that the employees must have at least one day of rest during the week. 3(b).↥, See, e.g., Cal. (1990) 224 Cal.App.3d 16, 40; see also Labor Code, § 510, subd. California protects employees from having to work too many hours in a day, or too many days in a week, without fair compensation. 8, §§ 11010–11170, subds. v. Superior Court of Kern County (1980) 27 Cal.3d 690, 702 [“[I]n light of the remedial nature of the legislative enactments authorizing the regulation of wages, hours and working conditions for the protection and benefit of employees, the statutory provisions are to be liberally construed with an eye to promoting such protection.”]; Brinker Restaurant Corp. v. Superior Court (2012) 53 Cal. Code of Regs., tit. Hours during which an employee is subject to the employer’s control will count as “hours worked” even if the employer is not required or permitted to work during those hours.55, As mentioned above, both federal and California law require nonexempt employees to be paid overtime when the employee works more than 40 non-overtime hours in a “workweek.”56 A workweek, for these purposes, is not necessarily the same thing as a regular calendar week—which most people consider to start on Monday.57. 8, §§ 11010–11170, subds. If you require legal advice, you should contact a lawyer to advise you personally about your situation. Do the same for the double overtime rate and hours. Please note that this calculator does not cover any exceptional circumstances, like how to calculate overtime for employees subject to an alternative workweek schedule. California Overtime Calculator . A determination of whether the on-call waiting time is spent predominantly for the employer’s benefit depends on two considerations: (1) the parties’ agreement, and (2) the degree to which the employee is free to engage in personal activities.”].↥, Gomez v. Lincare, Inc. (2009) 173 Cal.App.4th 508, 523.↥, Gomez v. Lincare, Inc. (2009) 173 Cal.App.4th 508, 523; see also Madera Police Officers Assn. Thus, under California law, the total overtime pay is $18.00. § 207; Labor Code, § 510, subd. The practice of double counting an employee’s daily and weekly overtime hours is called “overtime pyramiding,” because it attempts to stack overtime hours on top of overtime hours. Occupations to which special overtimes rules apply include: Employees don’t need to be residents of California to receive the protection of California’s overtime laws.36 In fact, California employees are protected even if they do not have legal residence or work privileges (“green card” status) in the United States.37, It is unsettled, however, whether out-of-state workers that briefly work in California for less than day at a time are entitled to the protection of California’s overtime laws.38, How to Calculate an Employee’s Overtime Wages. Employers don't have to compensate the same overtime hours more than once (also known as pyramiding). Federal law only requires overtime pay if the employee works more than 40 hours per week. Whether an activity is an integral part of the job is not always clear. In general, time the employee spends commuting from home to work is not part of the workday. Foodliner, Inc. (9th Cir. If these requirements are not met, the employee will be protected by California’s overtime laws. In other words, if an employee is entitled to an overtime rate of time-and-a-half, the employee must be given an hour-and-a-half of paid time off for each hour of overtime that the employee worked.85, An employer must pay wages for all “hours worked.” An employee who is instructed or permitted to work through a meal break must therefore be paid for the meal break.86, Thus, if an employee works more than 8 hours a day or more than 40 hours a week after counting meal breaks during which the employee worked, the employee is entitled to pay at the employee’s overtime rate.87, But, if an employee is relieved of all duties and obligations during their meal period, that time will usually not count as “hours worked,” and will not be compensable.88, California law requires also employers to give employees a paid rest period—usually of 10 minutes during every 4 hours worked.89 This rest period is considered part of the employee’s work hours, and is therefore included in the employee’s calculation of overtime wages.90. If an hour of employment would otherwise be compensable at a rate of more than one and one-half times the employee’s regular rate of compensation, then the employee may receive compensating time off commensurate with the higher rate.”].↥, Cal. 3(c)(8).↥, Labor Code, § 510, subd. There are two tests to determine whether an employee has worked during a given period of time: The two tests are independent of each other. The wage orders have adopted several exceptions to California’s overtime laws that apply to workers in specific industries or jobs. (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. Code of Regs., tit. For the first eight hours worked on the seventh consecutive work day in a single workweek. § 207(a)(1) [“Except as otherwise provided in this section, no employer shall employ any of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.”]; Labor Code, § 510 [“Any work in excess of eight hours in one workday . Below is a snapshot of the image from the template. 8, § 11140, subd. 29 U.S.C. It will help you in calculating weekly payroll taking care of all the rules. In 2018, the California Supreme Court issued a decision significantly impacting how employers must calculate overtime pay when non-exempt employees receive a flat-sum bonus. $100 divided by 40 hours = $2.50 per-hour bonus. At first glance, this rule would seem to require that all hours worked beyond the first 40 hours in a workweek should be paid at an overtime rate, even if some of those hours were counted towards the employee’s daily overtime wages. 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