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How do California’s overtime rules differ from the federal rule?

On Behalf of | Aug 18, 2021 | Wage And Hour Claims

Employees in California are allowed to work and earn overtime. However, the laws for overtime are different in the state compared with the federal laws. Both employers and employees should know how California’s overtime law works and how it differs from the federal level.

What are the California overtime rules?

Wage and hour claims are different for California employees. Individuals who work for a nonprofit, public or private company are required to be paid overtime at 1.5 times their normal pay when working at least 40 hours per week. This also applies if the person works for eight hours per day and for eight hours in a seven-day streak.

A worker isn’t entitled to overtime pay unless they work at least 40 hours per week. If a person works for eight hours per day for seven straight days or more or they work for 12 hours per day, they are entitled to receive double their normal pay.

What are the requirements for overtime pay in California?

California employees are eligible to get overtime pay as long as they meet certain requirements. They include the following:

  • The worker must be over 18 or over 16 if they are allowed to leave school to work.
  • The worker must be in a role that isn’t administrative, executive or professional. However, they can be someone who is licensed by the state or country to practice a variety of professions.
  • The individual must not fall under any state overtime exemptions.

How is California’s overtime pay calculated?

California wage and hour claims are determined based on the way overtime pay is calculated. To calculate the overtime rate, regular pay is considered in addition to the hourly pay the employee gets in addition. Overtime pay cannot be calculated through hourly rates only.

If a worker earns only an hourly wage, the overtime is determined using the regular pay rate. For instance, if the individual normally earns $10 per hour, they would get $15 per hour for standard double overtime. If this employee was eligible for overtime pay, they would receive $20 per hour.

Annual salaried employees who can receive overtime can have their overtime pay calculated by dividing their annual salary by the numbers of week per year, 52 and then by 40 for the hours per week.