California Overtime Law: Calculate Your Pay

California overtime law is designed to protect employees from exploitation by ensuring they receive fair compensation for working extended hours. The law requires employers to pay employees overtime rates for work performed beyond a certain number of hours in a workday or workweek. Understanding how to calculate your pay under California overtime law is essential for employees to ensure they receive the compensation they are entitled to.

California Overtime Law Basics

Under California law, employees are entitled to overtime pay if they work more than 8 hours in a workday or more than 40 hours in a workweek. The overtime rate is 1.5 times the employee’s regular rate of pay for work performed between 8 and 12 hours in a workday, and 2 times the employee’s regular rate of pay for work performed beyond 12 hours in a workday. Additionally, employees who work 7 consecutive days in a workweek are entitled to overtime pay for work performed on the 7th day.

Overtime Pay Calculation

To calculate your overtime pay, you need to determine your regular rate of pay and the number of overtime hours you worked. Your regular rate of pay is your hourly wage, excluding any bonuses, commissions, or other forms of compensation. If you are paid a salary, your regular rate of pay is calculated by dividing your annual salary by 52 weeks, and then dividing the result by the number of hours you are expected to work in a week.

Once you have determined your regular rate of pay, you can calculate your overtime pay by multiplying your regular rate of pay by 1.5 for work performed between 8 and 12 hours in a workday, and by 2 for work performed beyond 12 hours in a workday. For example, if your regular rate of pay is $20 per hour and you work 10 hours in a day, your overtime pay would be calculated as follows:

Your total pay for the day would be $220, which includes your regular pay of $160 and your overtime pay of $60.

Exemptions from Overtime Law

While California overtime law applies to most employees, there are some exemptions. For example, employees who are exempt from overtime law include those who are paid a salary and earn at least $49,920 per year, and who spend more than half of their worktime engaged in exempt duties such as management, administration, or professional work. Additionally, some employees in the computer software industry, as well as outside salespersons and certain drivers, may be exempt from overtime law.

It's also important to note that some employees may be entitled to overtime pay under federal law, even if they are exempt under California law. The Fair Labor Standards Act (FLSA) requires employers to pay overtime to most employees who work more than 40 hours in a workweek, unless the employee is exempt under the FLSA.

Calculating Overtime Pay for Non-Exempt Employees

For non-exempt employees, calculating overtime pay involves determining the employee’s regular rate of pay and the number of overtime hours worked. Employers must pay non-exempt employees at least 1.5 times their regular rate of pay for work performed between 8 and 12 hours in a workday, and at least 2 times their regular rate of pay for work performed beyond 12 hours in a workday.

Non-exempt employees who work 7 consecutive days in a workweek are also entitled to overtime pay for work performed on the 7th day. The overtime rate for work performed on the 7th day is 1.5 times the employee's regular rate of pay for the first 8 hours worked, and 2 times the employee's regular rate of pay for work performed beyond 8 hours.

Examples of Overtime Pay Calculations

Here are some examples of overtime pay calculations for non-exempt employees:

• Example 1: An employee works 10 hours in a day at a regular rate of pay of $25 per hour. The employee's overtime pay would be calculated as follows: 2 hours x $25/hour x 1.5 = $75.
• Example 2: An employee works 12 hours in a day at a regular rate of pay of $30 per hour. The employee's overtime pay would be calculated as follows: 4 hours x $30/hour x 1.5 = $180 (for the first 4 hours of overtime), and 0 hours x $30/hour x 2 = $0 (for work performed beyond 12 hours, since the employee did not work beyond 12 hours).
• Example 3: An employee works 7 consecutive days in a workweek, with 8 hours worked on each of the first 6 days, and 10 hours worked on the 7th day. The employee's regular rate of pay is $20 per hour. The employee's overtime pay for the 7th day would be calculated as follows: 2 hours x $20/hour x 1.5 = $60.