What Employers Should Know About Overtime Laws

Overtime Provisions

In California, the overtime provisions are that a nonexempt employee shall not be employed more than eight hours in any workday or more than 40 hours in any workweek unless he or she receives one and one-half times his or her regular rate of pay for all hours worked over eight hours in any workday and over 40 hours in the workweek.

• Daily threshold for overtime is at 8 hours worked and double time at 12 hours worked
• On 7th consecutive day worked of workweek, all hours are set to overtime and double time at 8 hours
• Sets weekly overtime at 40 hours
• Overtime is calculated based on hours actually worked. Sick, vacation, PTO, holiday pay hours are not counted as hours actually worked
• Workweek need not follow nor be the same as a calendar week. Both instances however are a fixed set of seven consecutive days

Examples:

Steps:

1. Any Hours in a day over 8 but less than 12? If so, move them to overtime
2. Any Hours in a day over 12? If so, move them to double time
3. Any Hours present on day 7? If so, move them to overtime and/or double time
4. Are there any remaining hours over 40 not yet promoted to overtime or double time? If so, move them to overtime

Call or message us with any questions on the above guidelines. Please review our most recent Overtime blog to learn about the penalties and how to avoid them as an employer.