Helping Employees Collect The Wages They Are Entitled To

What counts as overtime? The state of California has more stringent overtime pay laws than most other states. According to the Department of Industrial Relations, a California employer must pay overtime, whether for authorized or unauthorized overtime hours, at the following rates:

• Overtime: one and one half (1.5) times an employee’s regular rate of pay for hours worked over eight (8) in a workday or over forty (40) hours in a workweek.
• Double-time: two (2) times an employee’s regular rate of pay for hours worked over twelve (12) hours in a workday, or for hours worked over eight (8) hours on the seventh day of the workweek. 

If an employee works seven consecutive days, he or she must be paid 1.5 times the usual rate for the first eight hours worked on the seventh consecutive workday, and double time for any hours worked over eight hours on the seventh workday. 

Minimum Wage

In the state of California, minimum wage as of July 1, 2014 is $9 per hour (an increase of $1), and a further increase to $10 per hour is scheduled for July 1, 2016. Some employers may find this increase in hourly pay rate difficult but it is the law for everyone, including illegal immigrants (see Outdoor Workers below).

Overtime & Bonuses

California labor law requires that the rate of pay on which overtime pay is calculated include hourly wages, salaries and wage augments, such as shift differentials, non-discretionary bonuses, commissions or piece-rate pay if received by the employee. To calculate overtime on hourly wage only is an overtime bonus violation.