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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.
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.
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:
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 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:
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:
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:
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:
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.
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:
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.
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.
Employers are required to give employees the following meal breaks:
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.
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.
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.
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.
Hours that are worked during holidays (as well as weekends) are treated as regular workdays. With respect to holidays, California does not require:
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.
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:
Reporting time pay is not counted toward hours worked in computing overtime pay.
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.
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.
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:
Time that should be paid, but often goes unpaid may include:
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.
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.
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.
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:
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’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.
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.
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.
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.
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.
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.
It all starts with a free and confidential case review. A personal case manager will quickly identify if you have a valid claim. If they determine it’s valid, you can rest easy knowing that you won’t pay us a dime unless we recover compensation for you. Our contingency basis is meant to incentivize victims to pursue legal action without financial concerns. Contact us now to learn how our unpaid wages lawyer can help.
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