Instructions: Enter your staff's details; Click “Add employee” to add another set of details. ].↥, See Seymore v. Metson Marine, Inc. (2011) 194 Cal.App.4th 361, 375⁠–⁠376 [collecting cases], disapproved on other grounds by Mendiola v. CPS Security Solutions, Inc. (2015) 60 Cal. § 207(a)(1); Labor Code, § 510.↥, Time and Date AS, The 7 Days of the Week (accessed May 5, 2018), available here (Opens in new window).↥, Labor Code, § 500, subd. If this article was helpful, you already know you can trust us. An employer cannot require an employee to take paid time off (compensating time or “comp time”) instead of being paid overtime.⁠79 But an employee may only request comp time if all of the following conditions are met: If any of these conditions are not met, the employee must be paid the overtime rate they would otherwise be entitled to under the law.⁠84, Compensating time must equal the overtime rate. Code of Regs., tit. $21.75 x 10 overtime hours = $217.50 in overtime compensation owed for hours 41-50, RESULT: $480 in hourly wages for hours 1-40 ($12 x 40 hours) + $100 bonus + $217.50 in overtime compensation for hours 41-50 = $797.50 in total compensation. Most nonexempt employees in California have a legal right to receive overtime wages when they work long hours.⁠1, The amount of overtime depends on the length of the employee’s shift and the number of days he or she has worked in the workweek. 1983) 719 F.2d 350, 352.↥, Huntington Memorial Hospital v. Superior Court (2005) 131 Cal.App.4th 893, 902.↥, Industrial Welfare Com. 1981) 646 F.2d 413. How can employers be sure to be legally compliant in the calculations? Code Regs., tit. You can claim overtime if you are: A non-workman earning up to $2,600. 8, § 11040, subd. This easy and convenient tool will help employers and employees within the state of California to accurately calculate overtime hours worked. California employees will usually be entitled to calculate their regular pay under California law because it is more favorable to employees than federal law.↥, Labor Code, § 515, subd. (1990) 224 Cal.App.3d 16, 40.↥, Labor Code, § 204.3, subd. 3.↥, Cal. The employer must pay for the extra hours (including overtime) that the employee works.⁠100, On the other hand, an employer must pay for off the clock hours only if the employer “knows or should have known” that the employee worked those hours.⁠101 An employee may not conceal unauthorized work from an employer and then expect to be paid for that work.⁠102, Tasks that an employee must perform to prepare for work count as “hours worked” when they are an integral and indispensable part of the job.⁠103. Calculate overtime pay for a monthly-rated employee If you are a monthly-rated employee covered under Part IV of the Employment Act, use this calculator to find out your pay for working overtime. Employees are sometimes entitled to compensation for hours spent “on call.”⁠91 An employee is considered on call if the employer can call them into work on a short notice. Step 3: Calculate overtime premium pay. 4. More Than 40 Hours of Work in a Week Both the California Labor Law and the Federal Fair Labor Standards Act (FLSA) state that work performed in one workweek in excess of 40 hours is overtime. 8, §§ 11010⁠–⁠11170, subds. 8, §§ 11010⁠–⁠11170, subds. Step 2: Multiply the per-hour bonus by 1.5 and the hourly wage by 1.5 and then add those products. Federal law only requires overtime pay if the employee works more than 40 hours per week. Code of Regs., tit. California Overtime Calculator . shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee.”].↥, Labor Code, § 500, subd. Employees who are 16 or 17 years old and not required by law to attend school are also eligible to receive overtime pay. Click "Calculate" button to view result. Do the same for the double overtime rate and hours. 3, 11150, subd. . 8, § 11170, subd. Subtract the employee’s daily overtime hours from the total hours the employee worked during the workweek. 3(c)(6).↥, Cal. (a); see Cal. 8, § 11040, subd. Overtime pay is the pay employees receive for hours worked in excess of 40 hours during a work week. The wage orders have adopted several exceptions to California’s overtime laws that apply to workers in specific industries or jobs. But if the employee works more than 12 hours in a day or more than 8 hours on days outside the regularly-scheduled workdays, the overtime rate is double the employee’s regular rate.⁠73, Overtime “Pyramiding” Is Generally Not Allowed, As mentioned above, the general rule is that any work performed that exceeds eight hours in a day or 40 hours in a workweek must be paid at an overtime rate.⁠74. If these requirements are not met, the employee will be protected by California’s overtime laws. )↥, Morillion v. Royal Packing Co. (2000) 22 Cal.4th 575, 582.↥, 29 U.S.C. 1(A)(3) [defining the professional exemption].↥, Cal. In California, overtime must be paid to nonexempt employees in most occupations when the employee works: When California law requires an employer to pay overtime, the usual overtime rate of pay is one and one-half the employee’s regular rate of pay.⁠41 This is often known as being paid “time and a half.”. Employee's regular overtime pay rate = $21.75 (the regular rate of pay is $14.50). Step 2: Determine the number of overtime hours that must be compensated at 2 times the employee's regular rate of pay. (d)(1) [“For the purpose of computing the overtime rate of compensation required to be paid to a nonexempt full-time salaried employee, the employee’s regular hourly rate shall be 1/40th of the employee’s weekly salary.”]; see also Skyline Homes, Inc. v. Department of Industrial Relations (1985) 165 Cal.App.3d 239, 245 [explaining DLSE method of computing overtime for salaried employees], disapproved on other grounds by Tidewater Marine Western, Inc. v. Bradshaw (1996) 14 Cal.4th 557, 572⁠–⁠574. Employers are therefore not required to count an employee’s daily overtime hours toward their weekly overtime hours.⁠76 Instead, the correct way to calculate an employee’s overtime is to follow these three easy steps: Put another way, the weekly overtime trigger of 40 hours is reached after the employee has worked 40 hours at straight or regular-time.⁠78 Using this method of calculating overtime, the example above would look like this: The key thing to note in this example is that the employee’s weekly overtime begins to accrue on Saturday⁠—⁠only after they have worked more than 40 non-overtime hours in the workweek. For this reason, California defines overtime based not only on hours worked per day, but also per week. 8, §§ 11010⁠–⁠11170, subds. 8, § 11150, subd. California requires employers to pay non-exempt employees 1.5 times their regular rate of pay for: California also requires employers to pay non-exempt employees double their regular rate of pay for all hours worked: When an employee works both daily and weekly overtime hours, there are three key points to remember: To help illustrate these points, here are two examples: An employee's workweek runs Monday through Sunday. In general, this website is an advertisement for attorney . California law is governed, in part, by a series of regulations called wage orders, which have been issued California’s Industrial Welfare Commission.⁠27. Yes, California law requires that employers pay overtime, whether authorized or not, at the rate of one and one-half times the employee's regular rate of pay for all hours worked in excess of eight up to and including 12 hours in any workday, and for the first eight hours of work on the seventh consecutive day of work in a workweek, and double the employee's regular rate of pay for all hours worked in excess of 12 … any wages of an employee who is discharged or who quits, the wages of the employee shall continue as a penalty from the due date thereof at the same rate until paid or until an action therefor is commenced; but the wages shall not continue for more than 30 days.”].↥. The authorized rest period time shall be based on the total hours worked daily at the rate of ten (10) minutes net rest time per four (4) hours or major fraction thereof. Then this time card calculator is for you. Code of Regs., tit. Below, we cover some of the trickier California-specific overtime scenarios. A Closer Look at Some Common Overtime Issues. Everything there is to know on how to deal with this calculation is explained below the tool. The general rule is that the regular rate must be based on wages and most other forms of compensation an employee earns for work performed during the workweek, excluding overtime.⁠51. Code of Regs., tit. Our easy-to-use calculator can help. 2010) 598 F.3d 1217, 1228⁠–⁠1229 [time spent changing into police uniform not compensable if officer has option of changing at home] with Steiner v. Mitchell (1956) 350 U.S. 247, 256 [76 S.Ct. California overtime is based on an employee’s standard hourly rate of pay. Over eight on the seventh consecutive workday in a workweek. California overtime is to be paid to nonexempt employees who are 18 years of age or older. However, a rest period need not be authorized for employees whose total daily work time is less than three and one-half (3 1/2) hours.”].↥, Cal. You can adjust the rate to anything you want or set a custom overtime hourly rate, and the time and a half calculator will calculate your total payment. (a) [“‘Workday’ and ‘day’ mean any consecutive 24-hour period commencing at the same time each calendar day.”].↥, Labor Code, § 500, subd. Most notably, exempt employees must be paid a fixed salary (rather than an hourly wage) equal to at least twice the minimum wage.⁠16, The job duties of an exempt employee must also match those that are specified by law.⁠17 The duties are usually associated with the kind of “white collar” jobs that allow employees to exercise significant discretion without close supervision.⁠18. Employees who meet the requirements of an “outside salespersons” are a type of exempt employees.⁠22 An outside salesperson is defined as someone: Union employees are sometimes exempt from California’s overtime laws.⁠24 To qualify as exempt, the employee’s collective bargaining agreement must expressly provide for the wages, hours of work, and working conditions of the employee.⁠25, The collective bargaining agreement must also provide premium wage rates for all overtime hours worked and a regular hourly rate of pay of at least 30 percent more than the state minimum wage.⁠26. How to calculate California’s overtime law and avoid legal issues. The default value for overtime rate of the overtime pay calculator is 1.5 times the regular rate. Employers may not ask employees to work off the clock.⁠97 If an employee is paid by the hour, the employer must keep track of those hours, including overtime hours, and pay the appropriate rate for all hours worked.⁠98. Step 4: Multiply the employee's regular overtime pay rate by the number of regular overtime hours. This is true even if the employee commutes to work in a “ridesharing” program that the employer provides.⁠105, If traveling to work on employer-provided transportation is mandatory, however, commuting time will be considered “hours worked” and the employee is be entitled to compensation, including overtime if applicable, for those hours.⁠106, Time spent traveling from home to a job site might also count as “hours worked” if the job site is distant from the place where the employee usually works and the travel is necessary to carry out a special assignment.⁠107, How to Handle a Violation of Overtime Laws. . Note that this calculation may differ from the calculation of the regular rate under federal law. The federal Fair Labor Standards Act (commonly called the “FLSA”),⁠, Certain unionized employees that are subject to a collective bargaining agreement.⁠, Workers in specific occupations that have special overtime rules.⁠, Who spends more than half of their working time away from their employer’s place of business, and, Who sells items, services, contracts, or the use of facilities.⁠, Certain providers of 24-hour residential childcare;⁠, The employer’s spouse, children, and parents.⁠, More than 40 non-overtime hours in a workweek, or, A seventh consecutive day in any workweek.⁠, In excess of 8 hours on the seventh consecutive workday in a workweek.⁠. Step 4: Calculate total compensation for week. The degree of control that the employer exercises over the employee while the employee is not working will usually determine whether the employer must pay overtime.⁠92 If the employee is completely free to engage in personal activities while on call, the employee is not subject to the employer’s control and is thus not entitled to compensation.⁠93, But if the employee has no opportunity to engage in personal activities while waiting to be called into work, the employee is subject to the employer’s control and is entitled to compensation.⁠94. What is The California Overtime Law and Requirements? 11 [“Unless the employee is relieved of all duty during a 30 minute meal period, the meal period shall be considered an ‘on duty’ meal period and counted as time worked.”].↥, Cal. The primary categories of employment that will allow a salaried employee to be classified as exempt are: To learn more about the classification (and misclassification) of exempt employees, including the job duties that apply to each category of exempt employment, visit Exempt vs. Nonexempt Employees: Guide to California Law. $21.75 x 10 regular overtime hours = $217.50 in regular overtime owed, RESULT: $480 in hourly wages for hours 1-40 ($12 x 40 hours) + $100 bonus + $217.50 in regular overtime compensation + $29 in double overtime compensation = $826.50 in total compensation. Are you curious whether you're calculating overtime correctly for a California employee? In this example, the employee worked one hour in excess of 12 hours on Thursday, and no hours in excess of 8 hours on the seventh consecutive day in the workweek. Step 3: To determine the overtime hours due to the employee at 1.5 times their rate of pay, subtract the overtime hours compensated at 2 times their regular rate of pay from the total overtime hours due. Please note that this calculator does not cover any exceptional circumstances, like how to calculate overtime for employees subject to an alternative workweek schedule. There are two tests to determine whether an employee has worked during a given period of time: The two tests are independent of each other. Step 3: Multiply the per-hour bonus by 2 and the hourly wage by 2 and then add those products. If the employee is not paid by the hour but receives an annual salary and is eligible to receive overtime payments, calculate their hourly rate by dividing their annual salary by 52 (the number of weeks in a year) and then by 40 (the number of hours in a workweek). 4th 833.↥, See, e.g., Bradley v. Networkers Internat., LLC (2012) 211 Cal.App.4th 1129, 1156 [discussing allegation that “workers were compelled to work off the clock and this off-the-clock work was required to be paid at premium overtime wages”].↥, Labor Code, § 226, subd. Employee's overtime pay rate = $21.75 (the regular rate of pay is $14.50 ($12 hourly wage + $2.50/hour bonus). Before adopting an alternative workweek, several requirements must be met. 337, 339] [establishing federal standard for compensable time spent performing preliminary tasks].↥, Compare Bamonte v. City of Mesa (9th Cir. ©2020 ADP, Inc. All Rights Reserved. This website contains "communications" within the meaning of rules 7.1–7.3 of the California Rules of Professional Conduct. 4th 833, 845⁠–⁠846.↥, Huntington Memorial Hospital v. Superior Court (2005) 131 Cal.App.4th 893, 905.↥, Labor Code, § 515, subd. If you any attorneys or law firms mentioned on this website, you are initiating a professional relationship with us within the meaning of rule 7.3, subdivision (a)(2), of the California Rules of Professional Conduct. Our consultations are free and confidential. 8, §§ 11010⁠–⁠11170, subds. (a) [requiring employees to “customarily and regularly exercises discretion and independent judgment in performing” the duties of their job].↥, See, e.g., Cal. When California law requires an employer to pay overtime, the usual overtime rate of pay is one and one-half the employee’s regular rate of pay.⁠ 41 This is often known as being paid “time and a half.” However, an overtime rate of twice the employee’s regular rate of pay (often called “double time”) applies to hours worked: Calculating overtime in California is extra complex because state and federal rules differ. How to Calculate Overtime Pay in California, More than 40 hours worked in a workweek; and. In California, a flat-sum bonus is generally considered to be a nondiscretionary bonus that does not increase or decrease based on the amount of time worked or production of the employee (for example, a $30 bonus for any employee who works Saturday, regardless of how many hours they work during the rest of the workweek). In other words, if an employee is entitled to an overtime rate of time-and-a-half, the employee must be given an hour-and-a-half of paid time off for each hour of overtime that the employee worked.⁠85, An employer must pay wages for all “hours worked.” An employee who is instructed or permitted to work through a meal break must therefore be paid for the meal break.⁠86, Thus, if an employee works more than 8 hours a day or more than 40 hours a week after counting meal breaks during which the employee worked, the employee is entitled to pay at the employee’s overtime rate.⁠87, But, if an employee is relieved of all duties and obligations during their meal period, that time will usually not count as “hours worked,” and will not be compensable.⁠88, California law requires also employers to give employees a paid rest period⁠—⁠usually of 10 minutes during every 4 hours worked.⁠89 This rest period is considered part of the employee’s work hours, and is therefore included in the employee’s calculation of overtime wages.⁠90. When calculating overtime pay in California, you must use the employee's "regular rate" of pay, not the normal … is responsible for all communications made on this website. 8, §§ 11140, subd. § 218; Aguilar v. Ass’n for Retarded Citizens (1991) 234 Cal.App.3d 21, 34 [“[F]ederal law does not control unless it is more beneficial to employees than the state law.”].↥, United Parcel Service Wage & Hour Cases (2010) 190 Cal.App.4th 1001, 1010 [“In many respects, California law provides broader protection of employee rights, and in such instances, California law controls.”].↥, Sullivan v. Oracle Corp. (2011) 51 Cal.4th 1191, 1197 [“California’s overtime laws apply by their terms to all employment in the state . 11 total overtime hours due – 1 double overtime hour = 10 regular overtime hours due. 4th 833, 845⁠–⁠846.↥, Seymore v. Metson Marine, Inc. (2011) 194 Cal.App.4th 361, 369 [“[E]mployers may for bona fide business reasons establish an infinite variety of working schedules, including rotating and alternating schedules under which employees start at different times on different days.”], disapproved on other grounds by Mendiola v. CPS Security Solutions, Inc. (2015) 60 Cal. Communications '' within the meaning of rules 7.1–7.3 of the basic rules applicable most. 2.50 per-hour bonus: employees have a right to hire an employment to! Hours due warrant or guarantee the accuracy, reliability, and then 13 hours each day Monday Friday..., base rate calculations get complicated with commissions, bonuses, and instances when employees work 40-hours! Employment attorney to assist or advise them with any of these issues overtime. Labor Code, § 510, subd by 1.5 and then add products. Day Monday through Friday and then add those products how much overtime to which California... 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