Overtime Pay in California: Are You Getting What You’re Owed? (Complete Guide)

In California, overtime pay represents a critical right for workers, ensuring fair compensation for extra hours worked. Yet many employees find themselves shortchanged due to employer misunderstandings or intentional violations of overtime laws. As employment law attorneys handling wage and hour disputes, we regularly see workers who are denied their rightful overtime compensation.

Your Basic Overtime Rights in California

California provides some of the most robust overtime protections in the nation. Under state law, most non-exempt employees are entitled to overtime pay when they work:

• More than 8 hours in a single workday (time-and-a-half pay)
• More than 40 hours in a workweek (time-and-a-half pay)
• More than 12 hours in a single workday (double-time pay)
• More than 8 hours on the seventh consecutive day of work in a workweek (double-time pay)

Your “regular rate of pay” forms the basis for calculating overtime premiums. This includes not only your hourly wage but also non-discretionary bonuses, commissions, and other forms of compensation. For example, if you earn $20 per hour, your overtime rate would be $30 per hour (time-and-a-half) or $40 per hour (double-time).

Calculating Your Regular Rate of Pay

Your overtime rate is based on your “regular rate of pay” – but this isn’t always as simple as your hourly wage. The regular rate must include almost all forms of compensation, including:

• Hourly wages
• Non-discretionary bonuses
• Commissions
• Piece-rate earnings
• Shift differentials
• The per-hour value of other non-hourly compensation

For example, if you earn $20 per hour plus a $100 weekly production bonus for 40 hours of work, your regular rate would be $22.50 per hour ($20 hourly rate plus $2.50 per hour from the bonus). Your overtime rate would then be $33.75 per hour (1.5 x $22.50).

Common Overtime Violations by Employers

Unfortunately, many California workers face illegal practices that deny them proper overtime compensation. Some frequent violations we encounter include:

Misclassification as “Exempt”

Employers often incorrectly classify employees as exempt to avoid paying overtime. Remember, job titles alone don’t determine exempt status. To qualify as exempt in California, you must:

• Perform primarily executive, administrative, or professional duties
• Exercise independent judgment and discretion
• Earn a salary of at least twice the state minimum wage for full-time work ($66,560 annually in 2024)

Off-the-Clock Work

Some employers require or permit employees to work before clocking in or after clocking out. This might include tasks like:

• Setting up workstations
• Cleaning up after shifts
• Checking emails from home
• Attending “voluntary” meetings
• Completing paperwork after hours

All hours worked must be recorded and compensated, including applicable overtime premiums.

Incorrect Overtime Calculations

Employers sometimes fail to include all required compensation when calculating the regular rate of pay for overtime purposes. The regular rate must include:

• Hourly wages
• Non-discretionary bonuses
• Commissions
• Piece-rate earnings
• Shift differentials
• On-call pay

Unauthorized Overtime

Some employers refuse to pay overtime because they didn’t authorize the extra hours. However, California law requires payment for all hours worked, even if unauthorized, as long as the employer knew or should have known about the work being performed.

Who Is Exempt from Overtime?

Not every employee is entitled to overtime pay. True exempt employees must meet specific salary and job duties requirements:

• Earn a salary of at least twice the state minimum wage for full-time work ($66,560 annually in 2024)
• Primarily perform executive, administrative, or professional duties requiring independent judgment
• Meet other specific requirements for their exemption category

However, simply being paid a salary or having a prestigious title doesn’t automatically make you exempt. Many employers misclassify workers as exempt to avoid overtime payments. If you’re unsure about your classification, consider consulting with an employment attorney.

What to Do If You’re Not Receiving Proper Overtime Pay

If you believe your employer is violating overtime laws, you have several options:

1. Document all hours worked, including start and end times, meal breaks, and any off-the-clock work
2. Review your pay stubs and time records for discrepancies
3. Submit a written complaint to your employer’s HR department
4. File a wage claim with the California Labor Commissioner’s Office
5. Consult with an employment attorney about your rights and options

Don’t wait to take action. California law generally provides a three-year statute of limitations for overtime claims. However, you may be able to go back four years under certain circumstances. The sooner you act, the better positioned you’ll be to recover your unpaid wages.

Contact TONG LAW for Help

If you believe you’ve been denied proper overtime compensation, TONG LAW can help. Our experienced employment attorneys exclusively represent workers in wage and hour disputes. We understand California overtime laws in depth and can help you recover the compensation you’ve earned.

Contact us today for a confidential consultation about your overtime pay concerns. We’ll review your situation and explain your options for securing the wages you deserve.

Remember, your hard work deserves fair pay – including all overtime you’ve earned. Don’t let employers take advantage of your extra hours without proper compensation.