Failure to pay correct overtime is one of California’s most common forms of wage theft. It affects all kinds of workers across all different industries.
Employers might use various tactics to improperly avoid paying overtime. They may illegally round down work hours. They might instruct or otherwise encourage employees to work “off the clock.” They might also misclassify workers as exempt from overtime.
Regardless of the tactic, California law mandates overtime unless your specific job qualifies for an exemption. If your employer illegally withholds overtime pay, you can likely recover the wages you’re owed. Other damages and penalties might also be available.
Knowing your rights is the first step. You might even be working overtime hours without realizing it.
This guide will help clarify California overtime rules. California’s overtime laws provide stronger worker protections than baseline federal laws.
We’ll explain what constitutes overtime work in California, and cover which employees qualify for overtime pay.
Next, we’ll detail how overtime pay must be calculated under state law. We’ll also outline steps to take if you believe your employer isn’t paying you properly.
Consulting an employment attorney is usually a wise next step. Every situation has unique facts. A lawyer helps navigate the legal complexities and how they apply to your case. They can also assist in recovering wages your employer owes you.
Let’s begin by covering the general rules about overtime pay in California.
Defining Overtime and Understanding Overtime Laws in California
The exact definition of overtime differs depending on where you work. Rules exist at both the state and federal level.
Under federal law, overtime generally refers to hours an employee works beyond 40 in a single workweek. This federal standard provides a minimum protection across the U.S.
California offers expanded overtime protections compared to federal law. We’ll explain these stronger California rules shortly.
The Fair Labor Standards Act (FLSA)
Federally, the Fair Labor Standards Act (FLSA) is the main law setting rules for overtime pay in the U.S.1
The FLSA establishes several key nationwide labor standards. These cover minimum wage, overtime pay, employer recordkeeping requirements, and child labor restrictions. These federal standards generally apply to both full-time and part-time workers.
Under the FLSA, eligible non-exempt employees must receive 1.5 times their regular rate of pay. This applies for any hours worked over 40 in a single workweek.
When first passed, FLSA coverage was narrower. But it expanded significantly over the years through legislative amendments and important court decisions interpreting its reach.
The FLSA also defines specific exceptions to its overtime requirements. Certain types of jobs are classified as exempt. These jobs aren’t entitled to overtime pay. Common examples include the “white collar exemptions” covering certain executive, administrative, and professional positions that meet specific salary and job duties tests. We’ll discuss exemptions in more detail later.
The California Labor Code
When it comes to overtime, California law goes beyond federal FLSA rules. It offers stronger protections for many workers. The California Labor Code outlines these specific state requirements.2
Qualifying California employees must receive overtime pay calculated at 1.5x their regular rate of pay whenever they work:3
California law also mandates double time pay in specific situations. This means pay at 2x the regular rate of pay (double time) whenever employees work:
Let’s look at some specific examples:
Specific Rules for Overtime Calculation in California
We’ve covered when California requires overtime pay. But how is that pay calculated? Understanding your regular rate of pay is essential. Your overtime pay is based on a multiple (1.5x or 2x) of this specific rate.
If you’re paid only a simple hourly wage with no other compensation, your regular rate of pay is based only on that wage. The calculation is straightforward.
But it gets more complex if you earn other forms of pay, which must also be included in your regular rate. This generally includes earnings like:
The general rule is that your overtime rate should be 1.5x or 2x what you earned per hour, including all those extra types of pay.
Let’s use a concrete example. You’re non-exempt and earn $30/hour plus commissions. One week you work 48 hours (8 overtime hours) and also earn $960 in commissions for that work.
Your regular rate of pay for that week is $50 per hour (total earnings divided by total hours worked).
For the hours you worked overtime (8), you get 1.5x your regular rate of pay, or $25 extra per hour.
That means you made an extra $200 in overtime pay. This example shows non-hourly pay impacts overtime amounts.
Calculations can get significantly more complex. This happens with multiple pay rates or certain other bonus types.
Are you unsure if your overtime pay is calculated correctly? Consulting an employment lawyer is wise. They can review your pay and explain your rights.
What “Hours Worked” Means When Calculating Overtime
Calculating overtime depends on total hours worked. California uses a broad definition for hours worked. It isn’t limited just to time spent on your main job duties or your scheduled shift hours.
Generally, you must be paid for all time considered hours worked under state law. California uses two key tests to determine this:
Essentially, time spent working “off the clock” usually counts as hours worked. Such time must be paid and included when calculating overtime.
Here are a couple of concrete examples:
How and why employers skimp on overtime pay
California’s rules for overtime pay are clearly defined. But employers don’t always follow their legal obligations. Sometimes it’s due to misunderstanding the law. Other times, employers deliberately withhold earned overtime.
Employers use various tactics to improperly avoid overtime payments.
One common method involves miscalculating the pay rate. They might calculate overtime based only on an employee’s base hourly wage. They illegally ignore other earnings like commissions or non-discretionary bonuses.
This issue can arise frequently in piece-rate jobs. Examples include the agriculture or manufacturing industries. Workers in these settings might be pressured or even intimidated. They may feel discouraged from accurately reporting all hours worked, especially overtime hours.
Employers might also fail to keep accurate records of all time worked. They could suggest or allow employees to work “off the clock.” This might involve starting work before the shift officially begins or continuing after it ends without proper pay. Working during unpaid meal breaks is another example.
Make no mistake about these practices. They are illegal wage theft and violate both federal and California state law.
You have the right to report suspected wage theft. California law strongly protects you from employer retaliation for reporting wage issues. You also have the right to pursue recovery of wages stolen from you.4
We’ll cover the process for recovering wages later. For now, let’s look at the specific legal exceptions to California’s general overtime requirements.
A Closer Look at Overtime Exemptions in California Labor Law
It’s important to know California’s overtime rules don’t apply to every worker. Certain exemptions exist under the law.
As covered earlier, independent contractors don’t qualify for overtime. Certain categories of employees are also considered exempt from overtime and related rules like meal and rest breaks.
Let’s examine the main types of overtime exemptions for employees. We’ll look at three key areas. First, we discuss alternative workweek schedules and their impact. Then, we cover the major “white-collar exemptions.” Finally, we touch on other various job-specific exemptions.
Alternative Workweek Schedules
An alternative workweek schedule (AWS) modifies standard overtime rules. Under a properly adopted AWS, employees agree to work longer daily shifts up to 10 hours per day at their straight-time rate.5
The most common AWS example is a 4/10 schedule. This involves four 10-hour workdays per week. Schedules involving 12-hour days without daily overtime are only permissible under specific wage orders, with healthcare a potential example.
Implementing a valid AWS requires following strict legal procedures. It must be approved in advance by employees. This requires at least a 2/3 vote via secret ballot within the affected work unit.
Overtime rules still apply even with a valid AWS. Employees usually receive 1.5x pay for hours worked beyond the regular daily hours established in the AWS (e.g., over 10 hours in a 4/10 schedule). Weekly overtime pay for hours over 40 also still applies.
Double time (2x the regular rate) is still required too. This applies to all hours worked over 12 in any workday.
For employees on an AWS, double time also applies to all hours worked over 8 on any days employees work outside their regularly scheduled AWS days.
White Collar Exemptions to Overtime
Overtime rules often don’t apply to salaried, white-collar jobs. These exceptions are known as the “white collar exemptions.”
Both federal and California laws recognize these exemptions. The state and federal rules have minor differences. We’ll focus here on California’s requirements.
Employees classified as exempt under these rules don’t receive overtime pay. They also generally don’t get mandatory meal and rest breaks.6 We have another article dedicated to meal and rest break laws.
Importantly, the employer has the legal burden. They must prove an employee clearly meets all requirements for an exemption. It’s not the employee’s job to prove they aren’t exempt.
To qualify for a California white collar exemption, an employee generally must satisfy three basic conditions:
In addition to the salary tests, each specific white collar exemption has its own primary duties test:
These exemption rules are complex and depend heavily on actual job duties, not just titles or salary. Correct classification requires careful analysis.
Are you unsure if you’re properly classified as exempt under California law? Do you believe you might be owed overtime? Consulting an experienced employment lawyer is the best way to understand your specific rights.
Sales Exemptions
Special rules sometimes apply to salespeople regarding overtime pay in California.
Whether you’re considered exempt depends on your specific job duties and how you’re paid.7 There are two relevant exemptions: the outside sales exemption and the inside sales exemption.
The outside sales exemption generally applies to employees who spend most of their time working away from the employer’s main place of business. They must customarily and regularly work more than half their time outside, making sales or obtaining orders. Think of traveling sales reps visiting clients or door-to-door sales roles.
This exemption typically doesn’t cover employees who primarily sell from an office or other fixed site. For remote workers, a home office is considered a fixed site. That means the outside sales exemption does not apply.
The inside sales exemption has other specific requirements under California law. It can apply to employees working primarily inside the employer’s location (or a home office) whose earnings are mostly commissions. More than half your total compensation in a pay period must come from commissions.
But there’s a critical second requirement for the inside sales exemption. The employee’s total earnings for the workweek must exceed 1.5 times the applicable California minimum wage. That’s $990/week as of 2025, or potentially more if the city/county you work in has a higher minimum wage.
If your total earnings (including commission) fall below this threshold, you are not exempt. You must receive overtime pay for that workweek, even if paid mainly by commission. So, if you’re an inside salesperson, it’s still important to keep track of your hours.
Computer Professional Exemption
California has a specific overtime exemption for certain high-level computer professionals. It applies only to employees performing advanced, specialized computer work.
To qualify for this exemption, a worker must meet both specific job duties requirements and a minimum pay threshold.
Primary job duties must regularly involve one or more of these core functions:
Meeting the duties test alone isn’t sufficient. The employee must also meet a minimum pay level. For 2025, the required minimum pay rate is $56.97 per hour. If paid a salary, the minimum annual salary is $118,657.67.7 This minimum salary is updated every year.
Importantly, this exemption doesn’t cover all jobs involving computers. It typically excludes employees performing more routine tasks. Examples include computer manufacturing or repair, help desk support, or data entry. Workers in these roles usually must receive standard overtime pay if they work excess hours.
Specific Job Exemptions
California’s IWC Wage Orders also outline numerous job-specific exemptions. These roles may be fully or partially exempt from state overtime laws.
It’s important to note two key caveats regarding these exemptions. First, employees under a valid union contract (collective bargaining agreement, or CBA) might follow different overtime rules specified in that agreement.
Second, federal law often still applies. An employee might be exempt from California’s daily overtime rules. But they could still be entitled to federal overtime pay (1.5x rate for hours over 40 per week) under the FLSA.
With those points in mind, here are examples of job roles often exempt from some or all California state overtime rules:8
This list isn’t exhaustive. The specific rules and requirements for each job exemption can be very detailed and complex.
Do you work in one of these or a similar role? Are you unsure about your overtime eligibility? Consulting an employment lawyer is the best way to understand how the rules apply to your exact situation.
Why Employee Misclassification is a Serious Issue
We’ve discussed various exemptions from California overtime rules. Employees correctly classified under these exemptions don’t receive overtime pay.
But properly applying exemption rules is complex and critical. Employers sometimes misclassify employees as exempt.
This misclassification might stem from misunderstanding the law, or it could be an intentional attempt to avoid paying required overtime.
Common examples of potential misclassification include:
California law clearly places the legal burden of proof on the employer. They must prove that an employee meets all requirements for a specific overtime exemption. If the employer can’t meet this burden, the employee is likely owed overtime. The law generally presumes workers are non-exempt.
Being misclassified causes real harm. You lose out on earned overtime pay. You may also be denied required meal and rest breaks or other benefits owed to employees.
Think you’ve been misclassified by your employer? It’s vital to consult with a California employment lawyer. We can analyze your job duties and pay structure under the correct legal standards and explain your legal options. We can also identify potential compensation you might recover.
What to Do if Your Employer is Withholding Overtime Pay
Some employers try to avoid paying legally required overtime. They might misunderstand the rules for overtime or deliberately withhold earned wages.
California’s overtime laws can seem complex. But employer responsibilities are clearly defined. Companies must know and follow the state’s wage requirements. Ignorance isn’t a legal excuse for non-payment.
Standing up for your right to proper pay can feel intimidating. Remember, though: California law strongly protects your right to receive all earned overtime pay.
Do you suspect your employer is improperly withholding overtime? Document everything carefully and immediately. Detailed records are crucial evidence for any potential claim.
Helpful documentation includes:
Notify your employer in writing about specific errors you find in your pay. Clearly state the issue and request correction. Keep copies of this communication.
What if the employer doesn’t fix the problem after notification? Or what if you experience retaliation for raising the issue? It’s time to consult an experienced California employment lawyer.
A lawyer will explain your legal options based on your situation. They can help prepare and file a wage claim. Claims for unpaid wages are often filed with the California Division of Labor Standards Enforcement (DLSE). A lawyer can advise you on whether pursuing a lawsuit in court is appropriate.
Many employment lawyers offer a free initial consultation. Ask about working on contingency as well. This fee arrangement typically means you pay no attorney fees unless and until money is recovered for you.
Remember, strict deadlines apply to wage claims. These statutes of limitations limit how long you have to take legal action. Missing the deadline usually means losing your right to recover unpaid wages permanently. Prompt investigation and action are essential.
We assist California employees with unpaid overtime and other wage theft issues. Click the button above (on desktop) or below (on mobile) to schedule a completely free consultation to discuss your situation.
Answers to Common Overtime Questions in California
Citations
- 29 U.S.C. § 216 (go back)
- Cal. Lab. Code § 510 (go back)
- Cal. Lab. Code § 510(a) (go back)
- Cal. Lab. Code § 98.6 (go back)
- Cal. Lab. Code § 511 (go back)
- Cal. Lab. Code § 515 (go back)
- Cal. Lab. Code § 515.5 (go back)
- See Industrial Welfare Commission Wage Orders (go back)
- Cal. Lab. Code § 204 (go back)
- See Mitchell v. King Packing Co. (1956) 350 U.S. 260. (go back)