California Overtime Laws & Wages Attorney

California provides workers with some of the most protective wage and hour laws in the country. Within the state, certain cities offer even more generous benefits. Despite these advantages, however, not all workers receive the treatment to which the law entitles them. You may be one of these individuals, or perhaps you’re not sure what exactly your rights are. The Lore Law Firm is ready to assist you.

For more information, contact a California overtime laws & wages attorney or visit our comprehensive state labor laws guide.

What Is California’s Law on Overtime Pay?

In California, the law protects employees’ right to receive overtime pay, ensuring that hard work beyond regular hours is fairly compensated. Generally, California’s approach to overtime is more generous than federal law, offering additional benefits to workers. In addition, certain cities offer even more generous benefits within the state. The state mandates that employees are eligible for overtime under specific conditions to prevent overwork and ensure that workers are adequately compensated for longer hours. The exact rules regarding overtime pay, including the rates for various types of overtime and the thresholds for eligibility, are detailed in the California Labor Code. Despite the advantages the state offers, not all workers receive the treatment the law entitles them to. You may be one of these individuals, or perhaps you’re not sure what exactly your rights are. The Lore Law Firm is ready to assist you.

What Are California’s Minimum Wage Laws?

As of January 1, 2024, the minimum wage in California is $16.00 per hour. Beginning April 1, 2024, all fast-food restaurant employees must be paid $20.00 per hour. In addition, effective June 1, 2024, healthcare workers will begin to see a gradual increase in minimum wage. This increase will be phased in according to different schedules depending on the characteristics of the particular healthcare facility, with all facilities eventually reaching $25.00 per hour over the next several years.

Numerous municipalities in California have set their own minimum wage rates. For example, the City of Los Angeles has set the minimum wage at $17.27 per hour as of January 1, 2024.

The following cities in CA have their own minimum wage rates. If you work in one of these locations, you should check the specific minimum wage rate for that city:

• Alameda, Belmont, Berkeley, Burlingame, Cupertino, Daly City, East Palo Alto, El Cerrito, Emeryville, Foster City, Fremont, Half Moon Bay, Hayward, Los Altos, Malibu, Menlo Park, Milpitas, Mountain View, Novato, Oakland, Palo Alto, Pasadena, Petaluma, Redwood City, Richmond, San Carlos, San Diego, San Francisco, San Jose, San Leandro, San Mateo, Santa Clara, Santa Monica, Santa Rosa, Sonoma, South San Francisco, Sunnyvale, and West Hollywood.

What Is Wage Theft in California?

Wage theft in California refers to the illegal underpayment or non-payment of wages rightfully owed to employees. This encompasses various unfair practices, including not paying overtime, minimum wage violations, illegal deductions from wages, not providing required breaks, or failing to pay for all hours worked. California takes a strong stance against wage theft, enforcing stringent laws to protect workers. Key legislation, such as the California Labor Code and the Fair Labor Standards Act (FLSA), sets forth the rules employers must follow.

California’s Overtime Laws Explained

California’s overtime laws are among the most pro-worker in the country. For example, California requires daily overtime pay if eligible employees work more than 8 hours per day. Most states do not mandate this.

The following rates apply to non-exempt employees:

• Any hours worked over 8 per day at 1.5 times the regular pay rate
• Any hours worked over 40 per week at 1.5 times the regular pay rate
• The first 8 hours on the 7th consecutive day worked at 1.5 times the regular pay rate
• Any work in excess of 12 hours per day at 2 times the regular rate
• Any work in excess of 8 hours on the 7th consecutive day at 2 times the regular rate

Generally, employers are free to schedule employees for as many hours as they want. However, under California law, there are some restrictions on mandatory overtime. The following fields cannot be required to work more than 72 hours a week:

• Professional
• Technical
• Clerical
• Mechanical
• Harvest product handlers
• Agricultural positions
• On-site construction, drilling, logging, and mining

Exempt and Non-Exempt Employees

Some jobs are considered exempt from California’s overtime and labor law requirements. If the job falls within an exempt classification, the employee can lose rights to the following:

• Overtime premium
• Minimum wage
• Reporting time pay
• Rest period requirement
• Meal and lodging credit limits
• Uniform and equipment provisions

California has more rigorous exemption requirements than federal law. For example, the most common salaried overtime exemptions require that the employee spend at least 50% or more time on exempt duties. This is not a requirement under federal law. In addition, bonuses, commissions, and incentives cannot be used to meet the minimum salary requirement.

Some specific exemptions from the California overtime and labor law requirements are:

• Executives
• Administrative workers
• Professional employees
• Computer professionals
• Outside salespersons
• Truck drivers
• Taxicab drivers
• Student nurses
• Personal attendants
• Crew members on a commercial fishing boat
• Employees covered by collective bargaining agreements under certain conditions
• National Service Program (e.g. AmeriCorps) participants
• Commissioned employees
• Movie picture projectionists
• Professional actors
• Radio and television employees

Each of these categories has its own unique definitions and criteria, so check with an experienced California wage and hour attorney for more information about exemptions.

Misclassification of Independent Contractors in California

Independent contractors (aka 1099 workers or gig workers) are generally not entitled to overtime pay and other benefits that employees enjoy. California is home to many individual workers who are legitimately running their own businesses and who may properly be treated as independent contractors. However, because independent contractors have fewer rights than employees, including the right to overtime pay and benefits, employers have a strong incentive to mischaracterize their workers – treating them as independent contractors when they are really employees.

Merely labeling an employee as an independent contractor is not enough to avoid overtime pay and other labor law requirements. Nor does entering into a written agreement turn an employee into an independent contractor.

California has adopted what’s known as the ABC test to determine whether a worker is an independent contractor or an employee. Under this test, businesses that treat workers as independent contractors must show that the worker:

• Is free from the control and direction of the hiring company, both under the contract for the performance of the work and in fact;
• Performs work that is outside the usual course of the hiring entity’s business; and
• Is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

All three criteria must be met for an employer to pass the ABC test. This test is harder for employers to meet and results in more workers being classified as employees instead of independent contractors.

What Are the Responsibilities of Employers in California?

Employers in California must ensure a safe workplace, pay at least minimum wage with overtime as required, provide meal and rest breaks, maintain accurate wage and hour records, and carry workers’ compensation insurance.

Meal Breaks for Workers

Employers are required to give employees the following meal breaks:

• Unpaid 30-minute meal break if the employee works more than 5 hours per day. However, this can be waived by mutual consent if the total hours worked is no more than 6 per day.
• A second unpaid 30-minute meal break if the employee works more than 10 hours per day. This can be waived by mutual consent if (a) the total hours worked is no more than 12 per day, and (b) the first meal period was not waived.

If the employee is not relieved of all work duties or is required to remain on call during the meal period, it counts as hours worked, and the employee must be paid.

Rest Periods for Workers

In addition to meal breaks, employers must provide their employees with a 10-minute rest period for any 4-hour work period or a major fraction thereof. This is not required if the total time worked is less than 3.5 hours.

The break must be taken as close to the middle of the work period as possible. Rest breaks are counted as time worked, and the employee must be paid for them. The employer can also require that the employee remain on the premises during the rest break.

If an employer fails to allow an employee to take their allotted meal or rest breaks, the employer must pay the employee one additional hour of pay (at the regular rate of pay) for each break that was denied to them. Workers are also protected from retaliation for bringing claims related to meal and rest periods.

Expense Reimbursements for Employees

California state law requires employers to reimburse employees for all necessary expenditures or losses incurred in the discharge of their duties or in obedience to the employer’s directions. Expense reimbursements may include payment for the use of personal cell phones, vehicles, and more. This rule prevents employers from passing on the cost of doing business to their employees.

Employees cannot waive this right or be fired for asserting it. If an employer fails to properly reimburse employees for business expenses, the employee can recover their unreimbursed expenses, plus interest and penalties.

Commission Requirements for Employees

Under California state law, if an employee’s compensation is based on commissions, the commission compensation agreement must be in writing and must specify the way in which commissions are computed and paid. Employees who are paid on a commission basis are entitled to be paid once commissions are earned, which should be defined by the commission agreement.

In general, commissions must be paid at least twice a month. Workers are also entitled to unpaid commissions upon the termination of their employment. The commission pay arrangement is only available for sales employees, and there are some circumstances in which a commissioned employee can earn a commission and still be entitled to minimum wage, overtime pay, and meal and rest breaks.

Holidays and Vacations for Workers

Hours that are worked during holidays (as well as weekends) are treated as regular workdays. With respect to holidays, California does not require:

• That an employer provides its employees with paid holidays
• That an employer must close its business on any holiday
• That employees be given the day off for any particular holiday
• Additional pay for work done on holidays

Regarding vacations, California state law does not require that employers provide either paid or unpaid vacation time. However, if paid vacation time is provided, employers must follow certain rules. Earned vacation time, for instance, is considered as wages. Also, vacation time is earned (or “vests”) as work is performed and cannot be forfeited (no “use it or lose it”) even upon termination of employment, regardless of the reason for the termination.

An employer may place a reasonable limit on how many hours of vacation an employee may earn. Upon termination of employment, and unless otherwise provided in a collective bargaining agreement, all earned and unused vacation pay must be paid at the employee’s final rate of pay.

Rules for Reporting Time Pay in California

There are instances in which employees are scheduled to report to work but, once they arrive, are either not put to work or are permitted only to work less than half of their usual or scheduled day’s work. This often occurs due to inadequate employer scheduling or lack of notice given to the worker. In such cases, employees are entitled to compensation, known as reporting time pay. The requirements are as follows:

• If an employee is required to report to work but is either not put to work or is permitted only to work less than half of the usual or scheduled amount of work for the day, the employee must be paid for half the usual or scheduled amount of work for the day. The worker cannot be paid for under two hours, nor is the employer required to pay more than four hours. The employee’s reporting time pay rate is simply his or her regular pay rate.
• If an employee is required to report to work a second time in any one workday but is furnished with less than two hours of work on the second reporting, he or she must be paid for two hours at the regular rate of pay.

Reporting time pay is not counted toward hours worked in computing overtime pay.

Required Pay Periods in California

In general, California workers are entitled to be paid wages at least twice a month on a payday that the employer designates. Overtime wages must be paid by the next regular payroll period following the payroll period in which the overtime wages were earned. In other words, overtime wages that have been earned in one payroll period must be paid no later than the payday for the next payroll period. Only the payment of overtime wages may be delayed until the next payday.

Pay Stub/Statement Requirements

California is one of the few states that have pay stub/statement requirements. Every time you are paid, whether it is by check, cash, or otherwise, you must be given a detachable part of the check or a separate statement that shows certain information, such as gross wages earned, net wages earned, and all deductions.

How Does California Define “Work”?

Compared to federal law, California law is more favorable to workers when it comes to defining what constitutes work. If you are paid hourly, piece-rate, or day-rate, but you are not paid for every minute you are at work or doing work, you may be owed back wages.

Hours worked include all time:

• During which you are required to be at a designated work location
• During which you are required to be on duty or to be at a designated work site
• Spent traveling as part of your job during normal working hours
• During which you are permitted to do work

Time that should be paid, but often goes unpaid may include:

• Waiting to undergo, and actually undergoing, security screenings or bag checks
• Computer boot-up, sign-in, and download time spent prior to being “clocked in” at work
• “Clocking out” before spending time shutting down programs and logging out
• Waiting on assignments or being told when to begin while on work premises
• Receiving or sharing work-related information (pre- or post-shift “relief time”)
• Walking, riding, and traveling to and from the actual place of work (e.g. when the employee is required to park in a remote lot and take a bus)
• Changing in and out of required work clothes

How Much Overtime Should I Be Receiving?

How to Calculate Time and a Half

Calculating time and a half for overtime pay is straightforward. If an employee earns an hourly wage, time and a half is 1.5 times their regular hourly rate. For example, if someone’s hourly wage is $20, their overtime rate would be $20 x 1.5 = $30 per hour. To calculate overtime pay, multiply the overtime hours worked by the overtime rate. If an employee works 5 overtime hours at a rate of $30 per hour, their overtime pay would be 5 hours x $30 = $150. This method ensures employees are compensated fairly for the extra hours worked beyond the standard workweek.

How to Calculate Double Overtime Pay

Calculating double overtime pay in scenarios where it’s applicable involves multiplying an employee’s regular hourly wage by 2. For instance, if an employee’s standard hourly rate is $20, their double overtime rate becomes $20 x 2 = $40 per hour. To determine the total double overtime compensation, multiply the number of double overtime hours worked by the double overtime rate. So, if an employee works 3 hours of double overtime, their total double overtime pay would be 3 hours x $40 = $120. This calculation ensures that employees receive appropriate compensation for hours worked under conditions warranting double the usual pay rate.

Can You Get Fired for Refusing to Work Overtime in California?

In California, employers generally have the right to require overtime work, and refusal might lead to disciplinary action, including termination unless the refusal is protected by law (e.g., health reasons, safety concerns, or certain family responsibilities). However, employers must comply with California’s overtime payment laws, ensuring employees are compensated accordingly. Additionally, certain agreements or contracts may outline specific conditions for overtime work. Employees need to understand their rights and obligations under California labor laws to navigate overtime requirements and protections effectively.

Statute of Limitations for California Wage and Hour Complaints

As with most civil actions, those involving wage and hour issues must be filed within a certain time period. This time period is known as the statute of limitations, and failure to file by the deadline could irreversibly bar you from pursuing legal action.

The statute of limitation for claims that allege the non-payment of wages is two (2), three (3), or four (4) years from the date of the alleged non-payment, depending on the underlying employment agreement or the type of claim:

• If the claim is based on an oral agreement, it must be filed within 2 years from the date the claim arose
• If the claim is based on a written agreement, it must be filed within 4 years from the date the claim arose
• If the claim is for minimum wage, unpaid overtime, or other statutory claims, the claim must be filed within 3 years from the date the claim arose (however, in many instances, employees will be able to go back a total of 4 years under California’s unfair competition statutes)

Layoffs, Plant Closings, and WARN Notices

The Worker Adjustment and Retraining Notification Act (WARN) offers protection to California workers, their families, and communities by requiring employers to provide notice 60 days in advance of covered plant closings and covered mass layoffs. This notice must be provided to either affected workers or their representatives (e.g., a labor union).

An employer who violates the WARN Act by failing to provide appropriate notice is liable to each employee for an amount of up to 60 days back pay and benefits for the period of violation.

Violations of California Overtime Pay Law That an Attorney Can Fight

Violations of California’s overtime pay laws can significantly impact employees, and attorneys are equipped to fight against such injustices. Common violations include refusing to pay earned overtime, miscounting the overtime hours worked, and misclassifying employees as exempt from overtime when they are not. These practices deprive employees of their rightful earnings and undermine labor laws designed to protect workers. An experienced attorney can challenge these violations, seeking to recover unpaid wages, penalties, and interest on behalf of affected employees.

Class Actions for Wage and Hour Complaints

A class action lawsuit is one in which a large number of aggrieved employees with the same or similar complaints against an employer file a lawsuit collectively as a group. Under California state law, overtime and wage claims may be brought as a class action. The employees who file the class action lawsuit as class representatives are usually awarded extra compensation (a “service award”), in addition to their individual recovery, as a form of incentive pay.

How Much Does It Cost to Hire an Attorney to Assist Me with Unpaid Wages or an Overtime Claim?

When engaging an attorney at the Lore Law Firm for unpaid wages or overtime claims, the process is typically handled on a contingency fee basis. This approach means you won’t face any upfront charges. Instead, the firm’s compensation is a portion of the settlement or award you receive only if the case is won. This payment structure ensures that we are directly invested in achieving the best possible outcome for you, aligning our success with your financial recovery. It makes legal support accessible, removing financial barriers to pursuing the compensation you deserve.

How to File an Overtime Pay Dispute Against Your Employer

To file an overtime pay dispute against your employer in California, first gather evidence such as pay stubs, timesheets, and any relevant communication. Next, attempt to resolve the issue internally by discussing it with your employer or HR department. If this fails, it’s a good idea to seek legal advice to navigate the process effectively and protect your rights.

What Will an Overtime Lawyer Do to Help You?

An overtime attorney will initially gather various documents from you, primarily including pay stubs, timesheets, employment and arbitration agreements, and other evidence indicating work beyond standard hours.

After assessing the amount of unpaid overtime owed, the attorney will advise you on the next steps. If your case is taken, the attorney may send a demand letter, evaluates class action potential, files a lawsuit if necessary, conducts discovery, mediates for settlement, and proceeds to trial if needed.

Contact Our California Overtime Laws & Wages Lawyer

California has complex rules and regulations that protect workers, and the above items only scratch the surface. While the state is undoubtedly pro-employee, many employers refuse to follow the law and cheat their workers in the process. If you have questions about whether your wage and hour rights have been violated, let our California overtime laws & wages attorney at The Lore Law Firm take a look at your situation – it’s free and confidential. Reach out to us today.