California overtime laws are among the most protective in the U.S. Whether you’re an employer or employee, understanding California labor laws on overtime, pay rates, and eligibility rules is essential to stay compliant and avoid penalties.
This guide explains everything about overtime in California, including daily overtime rules, double time pay, exemptions, and how overtime pay works for tipped, salaried, and piece-rate workers.
California Overtime Laws Summary
| California overtime law | Overtime applies when employees work more than eight hours in a workday, 40 hours in a workweek, and six consecutive workdays in a week |
| Overtime pay rate | 1.5x the employee’s regular rate of pay for:
2x the employee’s regular rate of pay for:
|
| California minimum wage | $16.90 per hour |
| Minimum overtime rate | $25.35 per hour (calculated at 1.5x) |
| Comp time | Allowed in limited, strictly regulated situations |
| Salary threshold for overtime exemption | $70,304 per year |
This Article Covers
- What is Considered Overtime in California?
- California Overtime Pay Rates
- Who is Entitled to Overtime Pay in California?
- Overtime Exemptions in California
- Overtime Pay for Tipped Employees in California
- California Overtime Laws for Salaried Employees
- California Overtime Rules for Piece-Rate or Commissioned Employees
- Calculating Overtime on Bonuses in California
- Overtime Pay for Unauthorized Work Hours in California
What is Considered Overtime in California?
Under California labor laws, overtime is based on both daily and weekly hours worked.
Employees are entitled to overtime pay if they work more than:
- Eight hours in a workday
- 40 hours in a workweek
- Six consecutive days in a workweek
This is a key difference from the federal Fair Labor Standards Act (FLSA), which only requires overtime after 40 hours per week.
California Overtime Pay Rates
California’s overtime rates are significantly higher than the federal rates. Under the FLSA, employers must pay overtime at 1.5 times the employee’s regular rate of pay for all hours worked over 40 in a workweek.
However, California overtime laws follow two different overtime rates, which are as follows:
1. Time-and-a-Half (1.5x Pay)
California law requires employers to pay 1.5 times an employee’s regular rate of pay for:
- Hours worked over eight hours and up to 12 hours in a single day
- Hours worked over 40 hours in a workweek
- The first eight hours on the 7th consecutive workday
2. Double Time (2x Pay)
California law also requires double overtime pay for:
- Hours worked over 12 hours in a single day
- Hours worked over eight hours on the 7th consecutive workday
This is commonly referred to as California double overtime or double time laws in California.
If an employee’s regular hourly rate is $20 per hour:
Overtime (1.5x) = 1.5 x $20 = $30 per hour
Double time (2x) = 2 x $20 = $40 per hour
California employers must calculate overtime correctly to avoid the risk of wage law violations. For this, employers can also use our free overtime calculator.
Given California’s current minimum wage of $16.90 per hour, the state’s minimum overtime pay rate is: 1.5 x $16.90 = $25.35 per hour.
If an employee is entitled to double time pay, the minimum double time pay rate in California is: 2 x $16.90 = $33.80 per hour
It’s important to note that certain fast food restaurant employees and healthcare workers in California may be entitled to higher minimum wages under specific laws, which also results in higher overtime rates. Find more details about these varied minimum wages in California on the official page.
Who is Entitled to Overtime Pay in California?
Nonexempt employees in California are entitled to overtime pay if they work more than eight hours in a day, 40 hours in a week, or more than six consecutive days in a week. Overtime applies for eligible employees, regardless of how they get paid: be it by the day, week, piece rate, or commissions.
Employers can discipline employees for working overtime without permission. However, they still must pay for all hours worked if they knew (or should have known) the work was being done.
At the same time, employees can’t hide overtime work and later demand pay. Employers are responsible for tracking overtime hours accurately and making proper wage and overtime payments for any work they allow and benefit from.
Learn more about your overtime rights in California.
Overtime Exemptions in California
Under California overtime laws, salaried employees must earn at least twice the state’s minimum wage for full-time employment to be exempt from overtime pay.
Minimum salary threshold for overtime exemption in California:
2 x $16.90 full minimum wage × 40 hours x 52 weeks = $70,304 per year
In addition to meeting the salary threshold, employees must fall under recognized exemption categories such as executive, administrative, or professional roles. Simply being paid a salary does not automatically make an employee exempt under California labor laws.
Other categories of employees who may be exempt under California overtime laws include:
- Some computer software professionals who are paid hourly and meet specific criteria
- Outside sales employees
- Employees related to the employer (spouse, parent, or child)
- Certain union workers (depending on agreements)
- State and local government employees
- Drivers regulated by federal or California driving hours laws
- Employees under a valid collective bargaining agreement that meets wage and condition standards
- Commission-based employees (who earn more than 1.5× minimum wage and over 50% of earnings through commission)
- Student nurses in accredited nursing schools
- Taxicab drivers
- Airline employees who work up to 60 hours in a workweek due to voluntary schedule changes
- Commercial fishing crew members
- Professional actors
- Motion picture projectionists
- Certain radio/TV workers in towns with fewer than 25,000 people
- Some agricultural employees who earn twice the monthly state minimum wage
- Personal attendants not covered under the Domestic Worker Bill of Rights
- Teen babysitters working in the employer’s home
For a full breakdown of the affected categories, visit the official web pages of California overtime exemptions and overtime exceptions.
Is Comp Time Allowed in California?
Under California overtime laws, comp time (paid time off instead of overtime pay) is usually not allowed, especially for most private employers. However, comp time can be used in limited scenarios when the following specific conditions are met, including:
- There is a written agreement between the employer and employee (or union agreement).
- The employee chooses comp time in writing instead of overtime pay.
- The employee works at least 40 hours per week regularly.
- The employee does not exceed the maximum accrual limit of 240 hours of comp time. If an employee reaches the 240-hour cap, any additional overtime must be paid in cash wages.
How comp time works in California:
For every one hour of overtime, the employee must get at least 1.5 hours of time off. If the overtime qualifies for double-time pay under California law, the time off must match that higher rate.
Employees must be allowed to use their comp time within a reasonable time. Any unused comp time must be paid out when the employee leaves the job. Employees can also ask to convert comp time into cash pay.
Comp time is not the standard practice in California. Employers must usually pay overtime, and comp time is only allowed in limited, strictly regulated situations.
Overtime Pay for Tipped Employees in California
In California, employers cannot take or deduct tips from employees, nor can they use tips to offset wages owed. Unlike federal law, California overtime laws do not allow employers to use a tip credit system toward meeting minimum wage requirements.
Employees must receive the full California minimum wage of $16.90 per hour, plus any tips left by customers. (California Labor Code Section 351)
When calculating overtime for tipped employees in California, tips are not included in the employee’s regular rate of pay.
California Overtime Laws for Salaried Employees
Being salaried does not automatically exempt employees from overtime. Salaried employees must be paid overtime unless they qualify as exempt under federal or California overtime laws. Some employees are also exempt if specific rules in the California Labor Code or Wage Orders apply.
Non-exempt California salaried employees are still entitled to 1.5 times their normal pay for any hours worked over eight (but less than 12) in a day, over 40 in a week, or up to the first eight hours on the 7th consecutive working day in a week.
If an employee works more than 12 hours in a single day or over eight hours on the 7th consecutive workday, they must receive double pay (2x) under California overtime laws.
To determine the overtime rate for salaried employees, California employers have to determine the employee’s regular rate of pay using the following steps:
- Calculate the employee’s yearly wage first by multiplying the monthly income by 12 (months).
- Then, calculate the weekly wage by dividing the annual income by 52 (weeks).
- Divide the employee’s weekly wage by the maximum number of regular hours in a week, that is, 40 hours.
Learn more about how to calculate overtime in California.
California Overtime Rules for Piece-Rate or Commissioned Employees
In California, employees paid by piece rate (per unit produced) or commission (based on sales) are still entitled to overtime pay.
To calculate overtime, employers can use either of these methods:
1. Overtime Using the Piece Rate or Commission
An employee’s regular rate of pay is based on their piece-rate or commission-based earnings. Employees must be paid:
- 1.5x the employee’s regular rate for the first four overtime hours in a day (between 8-12 hours in a day)
- 2x the regular rate for hours worked over 12 in a day
2. Overtime Using the Average Hourly Rate (Weekly Method)
Employers can add an employee’s total weekly earnings (including overtime). Then, divide the amount by total hours worked to get the employee’s regular rate of pay.
Employers must pay the employee:
- An extra 0.5x rate for each overtime hour (time-and-a-half)
- An extra 1× rate for double-time hours
Overtime for Group Piece Rate Work in California
If an employee works in a group piece rate setup, the total pieces must be divided among all team members. Each person’s regular rate in the group is then calculated based on their share of the earnings and hours worked.
Here, it is important to note that any employee’s regular rate of pay can never be lower than California’s minimum wage, no matter which method is used.
Calculating Overtime on Bonuses in California
In California, not all bonuses count toward overtime pay. Only nondiscretionary bonuses are included when calculating an employee’s regular rate of pay for overtime calculations. These are bonuses tied to hours worked, incentives for productivity or performance, efficiency or output, and staying with the company (retention bonuses).
These bonuses can be given as flat sum bonuses (which are fixed amounts promised to an employee) or production bonuses (which are based on productivity or performance).
To calculate overtime given on a flat sum bonus, bonuses must be divided by the maximum legal normal hours worked in the bonus-earning duration. This will result in the flat sum bonus being paid at the usual pay rate.
Any extra hours performed within the bonus-earning period must be compensated at a rate of 1.5 or two times the usual rate.
Overtime on production bonuses is calculated by dividing the production bonus by the total number of hours worked during the bonus-earning period. This will produce the normal pay rate for the production bonus. It is then used to pay overtime at either 0.5 times or one time the standard rate.
Overtime on bonuses can apply to daily or weekly overtime and must be paid in the next paycheck after the bonus period ends.
Discretionary bonuses, gifts given on holidays or other special occasions, or amounts given as a reward that are not related to the work done, are not included in overtime compensation and are therefore not taken into account when calculating the regular pay rate of an employee under California law.
Overtime Pay for Unauthorized Work Hours in California
California law requires employers to compensate employees for overtime hours, whether or not it has been authorized. However, because no authorization was issued, an employer is allowed to invoke disciplinary actions against the employees.
It is important to note that an employee cannot knowingly work unauthorized overtime and then attempt to obtain compensation from the employer.
Employers must still keep records of their employees’ hours and pay them for all work performed, especially if the work was allowed by the employer and benefits the business. For accurate work hours tracking, California employers can use a reliable time tracking software that allows employees to clock in and out from anywhere at any time they perform work.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
