(650) 332-8623California Overtime Law: Your Guide to Rates, Statutes, Calculations, and More (2025)
This guide has everything you need to know about California’s overtime laws for 2025, including rates, thresholds, statutes, and much more.
California Overtime Rates and Statutes
1.5x
California's Primary Overtime Pay Rate
As is generally the case throughout the U.S., employees in California can earn overtime at a rate of 1.5 times their normal rate of pay after working enough hours to meet the state’s threshold for receiving overtime pay — see below.x
8 hours / day
Threshold to Receive Overtime in California
California has one of the more stringent thresholds for overtime pay eligibility in the United States. Eligible employees are entitled to receive the 1.5x overtime pay rate in California whenever they work more than eight hours in a single workday. This threshold applies in the following scenarios:
- For all hours beyond the eighth hour of labor in a single workday, for up to 12 hours worked in a day.
- For the first eight hours worked on the seventh consecutive day of a single workweek.
California also has a special overtime rate not available in any other U.S. state — double time (see below).
2x
Additional California Overtime Pay Rate
Eligible employees in California may also receive double time pay once they exceed the thresholds mentioned above. Double time must be paid:
- For all hours beyond the 12th hour of labor in a single workday.
- For all hours worked beyond the first eight hours on the seventh consecutive day of a single workweek.
CA LAB § 510
The Main Overtime Statute(s) in California
California’s overtime laws are based on CA Labor Code Section 510, which defines key terms, sets specific thresholds for eligibility, and specifies various guidelines and prohibitions for employers under the law. Other statutes govern specific aspects of California’s labor laws that intersect with or otherwise control its overtime regulations:
- Labor Code Section 204 governs mandated pay periods.
- Labor Code Section 1194 prohibits withholding overtime pay based on agreements or “waivers” between employer and employee.
DIR
The Department of Industrial Relations is Responsible for Enforcing Overtime Laws in Californis
In California, the Department of Industrial Relations (DIR) oversees all wage and hour issues in the state, which includes ensuring employees receive the overtime to which they’re entitled, enforcing California’s prevailing wage statutes, handling any labor disputes, and generally enforcing all CA labor laws across the state.
How to Calculate Overtime Pay in CA
To calculate overtime in California, you first need to know an employee’s regular rate of pay, which includes all forms of cash-based compensation, including their base salary rate, any commission or bonus payments to which they’re entitled for the period, and any other cash-based earnings.
If an employee’s “regular rate of pay,” for a week in which they earn overtime, includes lump-sum bonus or commission payments, an easy way to calculate their hourly rate for overtime considerations would be to add up all compensation and divide the total by 40 hours.
Let’s say an employee earning $20 an hour earns overtime for a week in which they also receive a commission payment of $500.
Their regular rate of pay is $32.50 per hour, becayse they’ve earned $800 in base wages and $500 in commission, for total “base” earnings of $1,300. Dividing their earnings of $1,300 by 40 hours gives us their $32.50 rate of pay for the week:
($40 (hourly wage) x 40 (required hours for overtime) + $500 (commission pay) = $1,300 in weekly base pay, or $32.50 per hour.
If this employee then works another 8 hours of “normal” 1.5x overtime under California overtime law, they’ll earn $48.75 per hour, or $390 for their 8 hours of overtime (a total of 48 for the week).
They will have then earned a total of $1,690 for the week, receiving $800 in base wages, $500 in commissions, and $390 in overtime pay.
If that employee is required to stay on the job for another 5 hours of double time, they’ll earn $65 for each hour of double time, for a total of $325 in double time pay.
As you can see, overtime pay can add up quickly in California, especially when eligible employees are required to work extremely long (12+) hours in any single day.
Who's Eligible For Overtime Pay in California?
Generally speaking, anyone earning pay on an hourly basis will be eligible for overtime pay in California.
While overtime laws generally cover employees earning hourly wages, Aa of January 1, 2025, California’s overtime laws require all salaried employees earning less than two times the state minimum wage of $16,50 per hour ($1,320 / week or $68,640 / year) to be paid to be paid overtime for all hours worked beyond 40 in a workweek.
Salaried employees may be exempt from California’s overtime laws if their roles meet these three criteria:
- They must earn more than $68,640 / year ($33 / hour).
- Their salary must not be subject to deductions based on the quantity or quality of their work.
- They must perform work requiring their “exercise of discretion” and/or “independent judgement” for at least 50% of their working hours — it must be a “genuine primary duty.”
As mentioned above, salaried employees in these three types of roles whose duties and pay meet the criteria specified above are exempt from overtime roles. These roles have management and/or leadership functions as part of their core duties.
This rule also exempts employees in high-tech (computer software) roles earning hourly pay rates, provided their roles meet the other three criteria specified for salaried employees above.
All state and local government employees are considered exempt from California’s overtime laws.
Every employee who must spend at least 50% of their work time away from their employer’s place of business to sell tangible items or services — typically door to door or at public kiosks in high-traffic areas.
Anyone employed as a driver in the state of California can be considered exempt from the state’s overtime laws if their hours are regulated by either:
- The U.S. Department of Transportation (DOT) Code Title 49, Sections 395.1 – 395.13.
- The California Code of Regulations Title 13, subchapter 6.5, sectiob 12oo et seq.
If an employee has signed onto a collective bargaining agreement which stipulates wages, hours of work, and working conditions and provides premium wage rates at least 30% higher than California’s minimum wage, they may be considered exempt from California overtime laws.
While commission payments may be used to calculate overtime rates in California, employees who earn commissions that make up more than half (50%) of their total compensation may be exempted from overtime.
In addition to the previous exemptions, the following types of employees may be considered exempt from some or all of California’s overtime regulations:
- People working in national service programs (ex: AmeriCorps)
- Student nurses attending CA-accredited schools
- Taxicab drivers
- Airline employees working 40-60 hours a week
- Full time carnies (carnival ride operators)
- Workers on commercial fishing boats
- Professional actors and film projectionists
- Announcers, editors, and engineers at local news stations
- Babysitters under age 18 working in their employer’s home
- Workers who are part of their employers’ immediate family
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CA vs. Federal Overtime Laws Compared
8 Hours / dayCalifornia Overtime Threshold
California’s threshold for overtime pay is one of the strictest in the nation. Any eligible employee working over 8 hours in a single day, or over 40 in a workweek, is entitled to overtime pay.
Workers may also earn double time — 2x their regular rate of pay — for working more than 12 hours in a day, or for working more than eight hours on the seventh consecutive day of a single workweek.
40 Hours /weekFederal Overtime Threshold
Under the federal Fair Labor Standards Act (FLSA), all non-exempt employees are entitled to overtime pay for all hours worked in excess of 40 per workweek.
For the FLSA’s purposes, a “workweek” is defined as a fixed and regularly-occurring period of 168 hours, or seven consecutive 24-hour days. These workweeks may be set for any seven-day stretch and do not need to correspond to or coincide with ordinary calendar weeks.
1.5x +California Overtime Rate
Like other states (and in accordance with federal law), California’s basic overtime rate is 1.5 times a worker’s regular rate of pay.
Additionally, California is the only state to offer double time overtime rates, which award employees twice their regular rate of pay for working extremely long hours (see above).
1.5xFederal Overtime Rate
The FLSA stipulates overtime rates of 1.5 times an employee’s regular rate of pay. There are no additional or higher rates for working more hours or for specified professions.
$68,640 / yearCalifornia Overtime Threshold for Salaried Employees
California’s salary threshold for overtime exemptions is a bit higher than federal guidelines, by almost exactly $10,000. This means salaried employees in California are eligible to receive overtime until they earn $68,640, or about $10,000 more than federal law stipulates.
$58,656 / yearFederal Overtime Threshold for Salaried Employees
Starting January 1, 2025, the federal wage threshold exempting roles from overtime pay is set at $1,128 per week, equivalent to $58,656 per year.
The FLSA also stipulates special thresholds for salaried employees in certain territories as well, with much lower thresholds (between $380 and $455 per week) for Puerto Rico, Guam, the U.S. Virgin Islands, the Northern Mariana Islands, and American Samoa.
CARoles Exempt from Overtime
In addition to roles exempt from overtime under federal FLSA laws, California also exempts these roles from its overtime laws:
- People working in national service programs (ex: AmeriCorps)
- Student nurses attending CA-accredited schools
- Taxicab drivers
- Airline employees working 40-60 hours a week
- Full time carnival ride operators
- Commercial fishing boat workers
- Professional actors and film projectionists
- Announcers, editors, and engineers at local news stations
- Babysitters under age 18 working in an employer’s home
- Workers who are part of their employers’ immediate family
FederalRoles Exempt from Overtime
Federal overtime law exempts certain roles from overtime pay:
- Executive, administrative, and professional employees earning more than the threshold
- Computer-related employees
- Outside sales employees
- Highly compensated workers earning more than $151,164 per year, of which at least $1,128 must be paid on a salary or fee basis per week
Misconceptions About CA Overtime Laws
Many employers believe overtime laws in California only apply to workers earning hourly pay (not salaried).
There are many salaried roles in California that may be eligible for overtime, and many roles considered to earn hourly wages that may be exempt from overtime. See the section above on eligibility for more details.
Like the previous misconception, this error may lead employers to believe that all employees, regardless of job type, pay rate, or work duties, are eligible for overtime after working 40+ hours a week.
As mentioned earlier, there are many roles exempt from overtime pay under California’s labor laws.
Some employers may attempt to stipulate their own overtime policies, which may differ significantly from California law.
The only way an employer may stipulate their own overtime policies in California is if they’ve reached a collective bargaining agreement with their employees that includes detailed overtime policies.
Since the FLSA specifies overtime rates based on weekly hours worked, some employers in California may believe this weekly rule covers their employees as well.
California’s overtime laws are more stringent than the FLSA. Under California law, employees become eligible for overtime after working more than eight hours in a day, or after working any amount of time on the seventh consecutive day of a single workweek.
The FLSA specifies an overtime rate of 1.5 times an eligible employee’s normal hourly rate for the week. California’s overtime laws also start overtime calculations at 1.5 times hourly wages, but they don’t end there.
In addition to the typical 1.5x pay rate for overtime, California employees can also earn double time for working:
- More than 12 hours in a day
- More than eight hours on the seventh consecutive day of a single workweek
Penalties for Overtime Noncompliance in CA
$100+Failure to Pay Correct Overtime
California employers must pay their employees’ wages at least twice a month. If an employer fails to pay for all overtime to which an employee is entitled, they may be penalized $100 for a first offense and $200 for all subsequent offenses. This penalty is assessed per employee, and will be assessed on top of all unpaid wages owed.
1 hours’ pay / breakPenalty for Misssed Breaks
If employees miss their mandated meal and rest breaks in California — whether working overtime or regular hours — their employer may be liable to pay one hour of their normal hourly wages as a penalty for every break missed.
Double damagesBad-Faith Overtime Law Violations
If state agencies determine an employer has not acted in good faith when violating California’s overtime laws — that is, if the employer has intentionally and willfully violated a law they know they must follow — they may be forced to pay double damages, or twice an employee’s owed back wages, plus interest.
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Navigating Overtime Requirements in California
Know What to Do as an Employer
- Stay informed about the nuances of California overtime laws, which can change frequently. This includes understanding the definitions of exempt and non-exempt employees and the specific conditions under which overtime pay is required.
- Use reliable systems to track the hours worked by employees. This includes all hours worked, overtime, and mandated breaks.
- Conduct training sessions for HR and managerial staff to ensure they know and can effectively implement the latest labor laws.
- Regularly audit your payroll practices to ensure accurate calculation of overtime pay, including incorporating bonuses and commissions when applicable.
- Keep detailed records of employees’ work hours, overtime, and pay. These records are crucial in case of any disputes or audits.
- Create clear, written policies regarding overtime and ensure they are communicated effectively to all employees.
- Consult with legal experts specializing in labor law to ensure your practices are compliant and to get advice on complex situations.
Know Your Rights as a Worker
- Understand whether you are classified as an exempt or non-exempt employee. This classification affects your eligibility for overtime pay.
- Keep your own records of the hours you work, including overtime. This can be crucial in verifying the accuracy of your pay.
- Be aware of how overtime pay should be calculated, including how bonuses or other incentives may affect your overtime rate.
- Familiarize yourself with California overtime laws and your rights as an employee. Resources like the California Department of Labor provide valuable information.
- If you believe there’s an error in your pay or overtime calculation, communicate with your employer. Often, issues can be resolved internally.
- Only if you cannot resolve an issue internally, consider seeking assistance from a labor rights organization or legal counsel.
Common Overtime Pay Challenges for Employers in California
1. Misclassification of Employees
Misclassifying workers as independent contractors or exempt employees is a widespread issue. This misclassification can lead to significant penalties and back pay for unpaid overtime.
2. Inadequate Recordkeeping
Failing to keep accurate records of hours worked is a frequent oversight. California law requires employers maintain detailed records of hours worked, including meal and rest breaks.
3. Miscalculating Overtime Pay
Overtime pay calculations can be complex, especially when they include commissions, bonuses, or other incentives. Incorrect calculations can result in underpayment of overtime.
4. Neglecting Daily Overtime Rules
Overlooking California’s daily overtime rule is a common mistake. Employers sometimes only focus on the 40-hour weekly threshold, neglecting the requirement for overtime pay for hours worked beyond 8 in a day.
General Best Practices for California Overtime Laws
1. Properly Classify All Employees
Employers should carefully evaluate whether workers qualify as independent contractors, exempt employees, or non-exempt employees under California law. Misclassifying employees can lead to costly back pay and penalties for unpaid overtime. Regular audits and consulting with legal professionals can help ensure proper classification.
2. Maintain Accurate Records
Keeping comprehensive and precise records of hours worked, including meal and rest breaks, is not just a best practice—it’s a legal requirement in California. Employers should implement reliable timekeeping systems to document this information and regularly review records for discrepancies.
3. Ensure Accurate Overtime Calculations
Calculating overtime correctly is vital, especially when wages include commissions, bonuses, or other incentives. Employers should train payroll staff and utilize software or tools designed to handle the complexities of California overtime law to avoid underpayment or errors.
4. Follow Daily and Weekly Overtime Rules
Employers must remember that California’s overtime requirements include both daily and weekly thresholds. Overtime pay is required not only for hours exceeding 40 in a week but also for hours worked over 8 in a single day. Establishing clear policies and monitoring daily hours can help prevent oversight.
Final Thoughts
California’s overtime laws are among the most complex in the nation, and compliance requires a thorough understanding of classification rules, accurate recordkeeping, proper pay calculations, and adherence to both daily and weekly overtime requirements. Employers who fall short risk not only financial penalties but also damage to employee trust and morale.
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California has some of the most comprehensive overtime pay laws in the United States. Here are the key rules for overtime pay in California:
General Overtime Rules
- Nonexempt employees are entitled to overtime pay when they work:
- More than 8 hours in a workday
- More than 40 hours in a workweek
- On the 7th consecutive day of work in a workweek
- The standard overtime rate is 1.5 times (time and a half) the employee’s regular rate of pay.
- Double time pay (2 times regular rate) is required for:
- Hours worked beyond 12 in a workday
- Hours worked beyond 8 on the 7th consecutive workday
Specific Overtime Provisions
- Overtime must be paid regardless of whether it was authorized by the employer.
- Paid rest breaks count towards hours worked when calculating overtime.
- The regular rate of pay for overtime calculations includes non-discretionary compensation like commissions and production bonuses.
- Employees cannot waive their right to overtime pay.
- Most employees are limited to working no more than 72 hours per week.
Exemptions
- Certain employees are exempt from overtime requirements, including executive, administrative, and professional employees who meet specific salary and duties tests.
- Some industries like agriculture have modified overtime rules.
Alternative Workweek Schedules
- Employers can implement alternative workweek schedules (e.g. four 10-hour days) if approved by employees, which modifies when daily overtime is owed.
Enforcement
- Employers who violate overtime laws may owe back wages plus interest and penalties.
- The statute of limitations for overtime claims is generally 3 years in California.
California’s overtime laws are designed to compensate employees fairly for extra hours worked and discourage excessive work hours. Both employers and employees should be aware of these rules to ensure proper pay practices.
In California, overtime is required after both 8 hours in a workday and 40 hours in a workweek for non-exempt employees. Here are the key points regarding overtime in California:
Daily Overtime
- Employees must receive overtime pay for working more than 8 hours in a single workday.
- The overtime rate is 1.5 times (time and a half) the employee’s regular rate of pay for hours worked beyond 8 up to and including 12 hours in a workday.
- Double time pay (2 times the regular rate) is required for hours worked beyond 12 in a workday.
Weekly Overtime
- Overtime pay is also required for working more than 40 hours in a workweek.
- The overtime rate for weekly overtime is 1.5 times the regular rate of pay for all hours worked over 40 in the workweek.
Additional Overtime Rules
- Employees are entitled to overtime pay for the first 8 hours worked on the seventh consecutive day of work in a workweek.
- Double time pay is required for all hours worked in excess of 8 on the seventh consecutive day of work in a workweek.
It’s important to note that California law requires employers to pay overtime whether it was authorized or not.
The state’s overtime provisions are designed to compensate employees fairly for extra hours worked and discourage excessive work hours.These rules apply to most non-exempt employees in California, regardless of whether they are paid hourly, by salary, or on a piece-rate basis. However, certain employees may be exempt from overtime requirements, such as executive, administrative, and professional employees who meet specific salary and duties tests.
The 8/80 rule is a specific overtime calculation method that applies to certain healthcare employees in California. Here are the key points about the 8/80 rule:
What is the 8/80 Rule?
The 8/80 rule allows eligible healthcare employers to use an alternative overtime calculation method based on a 14-day work period instead of the standard 40-hour workweek.
How it Works
Under the 8/80 rule:
- Employees receive overtime pay for hours worked over 8 in a workday
- Employees receive overtime pay for hours worked over 80 in a 14-day period
Eligibility
This rule specifically applies to:
- Hospital employees
- Residential care facility employees
Implementation
- Employers must choose between using the standard overtime rules or the 8/80 rule
- An employee cannot switch between the two systems
Comparison to Standard Overtime
The 8/80 rule differs from standard California overtime laws, which require overtime pay for:
- Hours worked over 8 in a day
- Hours worked over 40 in a week
- The first 8 hours on the 7th consecutive workday in a week
Important Considerations
- The 8/80 rule can provide more flexibility for scheduling in healthcare settings
- It may result in less overtime pay for some employees compared to standard rules
- Employers must carefully consider which system works best for their organization and employees
It’s important to note that the 8/80 rule is an optional alternative to standard overtime calculations and is only available to specific types of healthcare employers in California.
In California, there is no specific legal limit on the number of consecutive hours an employee can work in a single shift. However, California labor laws do require employers to provide certain breaks and overtime pay, which effectively regulate long work hours. Here are the key points:
Meal and Rest Breaks
- Employers must provide a 30-minute meal break for employees who work more than 5 hours in a day. This break must be provided no later than the end of the 5th hour of work.
- If an employee works more than 10 hours, they are entitled to a second 30-minute meal break.
- Employees are also entitled to a 10-minute rest break for every 4 hours worked (or major fraction thereof).
Overtime Pay Requirements
- Overtime pay (1.5 times regular rate) is required for hours worked beyond 8 in a workday.
- Double time pay (2 times regular rate) is required for hours worked beyond 12 in a workday.
Day of Rest Requirement
- Generally, employees are entitled to one day of rest in every seven days.
- However, there are exceptions for emergencies or certain industries.
While there’s no explicit cap on consecutive work hours, these regulations effectively discourage extremely long shifts by making them costly for employers. Additionally, employers must ensure that working long hours doesn’t create unsafe conditions.It’s important to note that some industries may have specific regulations limiting work hours for safety reasons (e.g., transportation, healthcare). Employees should be aware of their rights and consult with the California Department of Industrial Relations or an employment attorney if they have concerns about excessively long work hours.
In California, Paid Time Off (PTO) generally does not count towards overtime calculations. Here are the key points regarding PTO and overtime in California:
PTO and Overtime Calculations
- PTO hours are not considered “hours worked” for the purpose of calculating overtime.
- Only actual hours worked count towards the overtime thresholds of 8 hours per day or 40 hours per week.
Examples
- If an employee works 32 hours in a week and takes 8 hours of PTO, they would not be eligible for overtime pay, even though their total paid time is 40 hours.
- An employee who works 40 hours and then takes 8 hours of PTO would only receive overtime on the 40 hours actually worked, not on the additional PTO hours.
Exceptions
- Some collective bargaining agreements or company policies may treat PTO differently, but this is not required by California law.
Important Considerations
- Employers must still pay for all PTO hours at the employee’s regular rate of pay.
- While PTO doesn’t count towards overtime, it’s important to note that paid rest breaks do count as hours worked for overtime calculations.
Best Practices
- Employers should clearly communicate their PTO and overtime policies to employees.
- Accurate timekeeping is crucial to distinguish between actual work hours and PTO hours.
It’s important to remember that while PTO doesn’t contribute to overtime calculations, California law still requires employers to pay overtime for all hours actually worked beyond the standard daily and weekly thresholds.
