California Overtime Laws: Are You Getting Paid Everything You're Owed?

How California Overtime Works

California's overtime laws are designed to protect workers and discourage excessive hours. Unlike federal law, which only requires overtime after 40 hours per week, California requires overtime pay in multiple scenarios.

Daily Overtime (1.5x Pay): You must be paid 1.5 times your regular rate for:

• Hours 9–12 in a single workday
• Hours worked on the 7th consecutive day (up to 8 hours)

Double Time (2x Pay): You must be paid twice your regular rate for:

• Hours over 12 in a single workday
• Hours over 8 on the 7th consecutive day

Weekly Overtime (1.5x Pay): You must be paid 1.5 times your regular rate for all hours over 40 in a workweek, unless those hours are already being paid as daily overtime or double time.

The workweek is typically seven consecutive days starting on a set day (often Sunday or Monday). A workday is any 24-hour period starting at the same time each day.

Who Is Entitled to Overtime?

In California, most employees are entitled to overtime. The key distinction is between exempt and non-exempt employees.

Non-exempt employees include hourly workers, most salary workers earning below certain thresholds, and those without genuine supervisory duties. Non-exempt employees are entitled to overtime.

Exempt employees include executive, professional, and administrative employees who meet strict criteria. However, employers often misclassify workers as exempt when they should be non-exempt.

Important: Being paid a salary does not automatically mean you're exempt. Even salaried employees may be entitled to overtime if their duties don't fall into a recognized exempt category. Many companies incorrectly classify salaried workers earning under $65,000 annually as exempt, which violates California law.

Common Overtime Violations

Overtime violations are common in California workplaces. Here are the most frequent violations we see:

Off-the-Clock Work: Employers sometimes pressure employees to work before clocking in, during unpaid lunches, or after clocking out. All time worked must be paid and counted toward overtime.

Rounding Time: While limited rounding is legal, many employers round down time worked, which reduces overtime pay.

Comp Time Instead of Cash: California does not allow comp time in lieu of overtime pay. You must be paid in cash at the overtime rate.

Misclassified Managers: Many companies classify supervisory or team lead positions as exempt when they don't meet the legal requirements for exemption. If you spend most of your time doing non-managerial work, you're likely entitled to overtime.

Intentional Underpayment: Some employers calculate overtime using a lower rate than they should, or exclude bonuses from the overtime calculation.

Calculating What You're Owed

To calculate your overtime pay, you must first establish your regular rate of pay. This includes:

• Hourly wages
• Bonuses tied to productivity or performance
• Commissions (in some cases)
• Shift differentials

Your regular rate is typically calculated by dividing all compensation earned in a week by the total hours worked.

Once you have your regular rate, overtime calculations follow the rules above: 1.5x the regular rate for daily or weekly overtime, and 2x for double time hours.

PAGA Penalties: Beyond unpaid overtime, employers who violate California wage laws may also be liable under the Private Attorneys General Act (PAGA). This can result in civil penalties of $50–$200 per violation per employee, which can significantly increase the amount you recover.

What to Do If You're Owed Overtime

If you believe you've been underpaid overtime, take these steps:

1. Document Everything: Save all pay stubs, timesheets, schedules, emails, and notes about hours worked. The more documentation you have, the stronger your case.
2. Gather Evidence: If your employer's timekeeping system differs from actual hours worked, document the discrepancies. Take screenshots if possible.
3. Know the Statute of Limitations: You have up to 3 years to recover unpaid wages for written contracts and 2 years for oral contracts. However, starting a case sooner is better.
4. Consult an Attorney: Overtime cases are complex and involve detailed calculations. An experienced wage and hour attorney can review your situation, determine what you're owed, and advise on the best course of action.

Many overtime cases result in substantial recoveries. If you're owed overtime, you likely have legal options. Consultations are often free, and many attorneys work on contingency, meaning you pay nothing upfront.