Many California workers put in long hours but don’t get all the overtime pay they deserve. California has some of the strongest overtime laws in the country, but employers often find ways to avoid paying workers properly.
At Malk Law Firm, we regularly help workers recover unpaid overtime wages. Many people don’t even know they’re being shortchanged until they talk with a lawyer. This post will explain California’s overtime rules and help you check if your employer is paying you correctly.
California Overtime Key Rules
California overtime laws are covered under Labor Code Section 510 and are more worker-friendly than federal laws. Here are the key rules:
- 1.5× your regular rate (time and a half) for:
- Hours worked beyond 8 in a single workday
- Hours worked beyond 40 in a workweek
- First 8 hours worked on the seventh consecutive day in a workweek
- 2× your regular rate (double time) for:
- Hours worked beyond 12 in a single workday
- Hours worked beyond 8 on the seventh consecutive day in a workweek
California’s daily overtime rule is what makes our state’s laws better for workers than federal law, which only requires overtime after 40 hours in a week.
Who Qualifies for Overtime Pay in California?
Most hourly workers in California qualify for overtime pay. However, some employees are “exempt” from overtime rules. To be exempt, you must:
- Be paid a salary (not hourly)
- Earn at least twice the state minimum wage for full-time work
- Perform exempt job duties (executive, administrative, or professional)
All three conditions must be met for a valid exemption under Labor Code Section 515.
Common Ways Employers Avoid Paying Overtime
Employers use many tactics to avoid paying proper overtime:
1. Misclassifying Employees as Exempt
Many employers wrongly label workers as “managers” or “administrators” to avoid paying overtime, even when their actual job duties don’t qualify for exemption.
2. Misclassifying Employees as Independent Contractors
Some employers falsely classify workers as “independent contractors” instead of employees. True independent contractors must control their own work methods and schedules under the “ABC test” established by the California Supreme Court.
3. Not Paying for All Hours Worked
Employers might not count certain activities as “work time,” such as:
- Setup or cleanup time
- Required training or meetings
- On-call time
- Travel time between work sites
4. Averaging Hours Across Two Weeks
Some employers try to average hours across multiple weeks to avoid daily overtime. This is illegal in California, where overtime is calculated on a daily and weekly basis.
5. Not Including All Pay in the Overtime Rate
Your overtime rate must be based on your “regular rate of pay,” which includes:
- Base hourly rate
- Commissions
- Non-discretionary bonuses
- Piece-rate earnings
6. Using “Comp Time” Instead of Overtime Pay
Private employers cannot legally offer “comp time” (extra time off) instead of paying overtime wages, though some government employers may do so.
What to Do If You’re Not Getting Proper Overtime Pay
If you think your employer isn’t paying you correctly for overtime, take these steps:
- Review your pay stubs: California Labor Code Section 226 requires employers to provide detailed pay stubs showing hours worked and rates of pay.
- Keep your own records: Write down your hours worked each day, including start and end times.
- Talk to coworkers: Find out if others have the same issue (but be careful about workplace rules).
- Request your payroll records: Under Labor Code Section 226(b), you have the right to see copies of your payroll records.
- File a wage claim: You can file with the California Labor Commissioner’s Office or speak with our Los Angeles overtime violations lawyers.
At Malk Law Firm, we help workers in Los Angeles, Beverly Hills, and throughout California recover the overtime wages they’ve earned.
Time Limits for Overtime Claims in California
You don’t have forever to claim unpaid overtime:
- 3 years to file claims for unpaid wages under California law
- 4 years if you file a claim under California’s Unfair Competition Law
- 2 years for claims under federal law (3 years for willful violations)
Don’t wait too long to take action. Each day that passes could mean lost wages you can’t recover.
Penalties for Employers Who Don’t Pay Overtime
California law creates significant penalties for employers who fail to pay proper overtime:
- Unpaid wages: The full amount of unpaid overtime
- Interest: On all unpaid wages
- Waiting time penalties: Up to 30 days of wages if you’ve left the job and weren’t paid everything you were owed
- Liquidated damages: An additional amount equal to the unpaid wages in some cases
These penalties can add up quickly and often motivate employers to settle cases rather than go to court.
Can You Be Fired for Requesting Overtime Pay?
It’s illegal for employers to retaliate against you for asserting your right to overtime pay under Labor Code Section 1102.5. This includes:
- Firing you
- Reducing your hours
- Giving you worse shifts
- Demoting you
- Creating a hostile work environment
If you experience retaliation after requesting proper overtime pay, you may have an additional claim against your employer for workplace retaliation.
Special Overtime Rules for Specific Industries
Some industries in California have special overtime rules:
- Healthcare workers: Special rules for shifts longer than 12 hours
- Agricultural workers: Gradually being phased into standard overtime rules by 2025
- Domestic workers: Entitled to overtime under the Domestic Worker Bill of Rights
- Transportation workers: May be covered by different rules depending on whether they cross state lines
Check with the Department of Industrial Relations or speak with our employment attorneys about your specific industry.
Get Help Recovering Your Unpaid Overtime
Don’t let employers keep the overtime pay you’ve earned. California law provides strong protections, but you need to take action to claim what you’re owed.
If you think you haven’t received proper overtime pay, contact our attorneys for a case evaluation. We’ll help you find out if you’re owed money and guide you through the process of getting it back.
Frequently Asked Questions About Overtime Pay in California
Is overtime calculated differently for salaried non-exempt employees?
Yes. For non-exempt salaried employees, you must convert the salary to an hourly rate first. Divide the weekly salary by the number of hours it’s intended to cover (usually 40). Then apply the normal overtime multipliers to hours worked beyond 8 per day or 40 per week.
Do California’s overtime laws apply to remote workers?
Yes, if you’re working remotely in California, you’re still covered by the state’s overtime laws. Your employer must track and pay for all overtime hours, even when you work from home.
What if my employer pays me “under the table”?
Even if you’re paid in cash with no payroll records, you’re still entitled to overtime pay. Being paid “under the table” doesn’t remove your right to overtime, and may actually strengthen your case since the employer is already breaking tax laws.
Do undocumented workers have a right to overtime pay?
Yes. Immigration status does not affect your right to overtime pay under California law. You can file wage claims regardless of documentation status, and the Labor Commissioner’s Office does not ask about immigration status when investigating wage violations.
