Many employees have a love-hate relationship with the word overtime. While it does mean long hours, it also means more pay–usually. But how is overtime calculated? And when do you receive it? Davtyan Law Firm is here to answer a few questions we get about California overtime laws.
Only non-exempt employees are eligible for overtime. This usually means hourly workers. Sometimes salaried workers and workers paid on commission are eligible for overtime pay in California. Independent contractors are not eligible for overtime pay.
Instances where employees must be paid overtime include if they work more than 8 hours in a day or 40 hours in a week. Employees must also be paid overtime for their seventh consecutive day of work.
Overtime rates are most commonly calculated as one and a half times or two times your “regular rate of pay.” Most times this is your hourly wage. The regular rate of pay must be at least minimum wage, meaning that overtime pay must be at least one and a half times the minimum wage. There are some instances where overtime is calculated at twice the regular rate of pay, such as working more than 12 hours in a shift.
There are a few exceptions to the general overtime rules. If a non-exempt employee also makes certain types of bonuses, commissions, or other forms of additional compensation, overtime worked during that same pay period may be calculated more than the typical overtime rates. Another example is when a union provides different overtime rates than normally available to employees.
If you believe that you have not been receiving overtime pay that you are owed, you may need legal help. Call Davtyan Law Firm, a California law firm that exclusively practices employment law today for a free legal consultation.
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