How does overtime pay work in California?

Under Labor Code section 510, non-exempt California employees earn time-and-a-half after 8 hours in a workday or 40 in a workweek, and on the first 8 hours of a seventh consecutive workday. Double time applies after 12 hours in a day and after 8 hours on that seventh day, broader than the federal weekly-only rule.

California pays overtime by the day, not just the week. Under Labor Code section 510, non-exempt employees earn one-and-a-half times their regular rate after 8 hours in a workday or 40 hours in a workweek, and for the first 8 hours on a seventh consecutive workday. Double time applies after 12 hours in a day and after 8 hours on that seventh day. This daily-overtime rule is broader than the federal FLSA, which uses only the 40-hour weekly trigger. The "regular rate" must fold in most bonuses and incentive pay, a frequent source of underpayment. Exemptions (executive, administrative, professional) require both duties that qualify and a salary of at least twice the state minimum wage for full-time work (Labor Code section 515); a job title alone exempts no one. Misclassification as an independent contractor is tested under the ABC test codified at Labor Code section 2775. Unpaid overtime is generally recoverable three years back, four with an unfair-competition claim.

Authority: Cal. Lab. Code § 510