California Wage and Hour FAQs

Answers to California Overtime Law, Minimum Wage Questions

Back to California Overtime Law

What is a regular rate of pay and how is it determined?

Overtime is based on an employee's regular pay rate, which is the amount of compensation he or she normally receives for their work. A regular rate of pay can consider several types of compensation including hourly earnings, salary, piecework earnings and commission. An employee's regular rate of pay should not fall beneath the minimum wage in California.

If you are an hourly worker, your hourly pay rate is your regular rate of pay. If you are a salaried employee, divide your annual salary by 52. Then divide this number by the number or legal maximum regular hours (40) to compute your regular hourly rate.

If an employee works overtime without authorization, should they be compensated?

Yes. Under California overtime law, employers must pay non-exempt employees time-and-a-half for overtime hours, regardless of whether the overtime was authorized.

Should I include bonuses in my regular pay rate when calculating overtime?

Yes, as long as it is a nondiscretionary bonus. A nondiscretionary bonus should be included when calculating overtime when it is based on hours worked, proficiency or production.

Discretionary bonuses are given as gifts on a holiday or other special occasion, such as a reward for good service, which are not based on hours worked, proficiency or production.

Are there any payments which should not be included when calculating an employee's regular rate of pay for purposes of overtime?

Certain types of compensation should be excluded when calculating overtime. Common exclusions include expense reimbursements, discretionary bonuses, payments for vacation, holiday or illness and premium pay for weekend or holiday work.

Can salaried employees receive overtime?

Salaried workers are not automatically disqualified from overtime pay, contrary to what most workers believe. Salaried employees must be paid overtime unless they are considered "exempt" under federal law, California overtime law or a provision of one of the Industrial Welfare Commission Wage Orders.

Can my employer force me to work overtime?

Yes, your employer can dictate your work schedule. In addition, in most cases, an employee can be disciplined or terminated for refusing to work overtime.

Can a worker waive their right to overtime pay?

No. California wage and hour law states that an employee must be paid all overtime compensation notwithstanding any agreement to work for a lower wage. Therefore, an agreement or waiver will not prevent a worker from recovering the difference between wages paid and the overtime compensation they deserved.

What can I do if my employer refuses to pay me overtime?

You can file a wage claim with the Division of Labor Standards or contact a California overtime attorney to file an unpaid overtime lawsuit to recover back pay.

What can I do if my employer retaliates against me for filing a unpaid overtime claim in California?

If your employer discriminates against you for filing a wage claim, you can file a retaliation complaint with the Labor Commissioner's Office or contact a California overtime lawyer to file a lawsuit against your employer. Examples of employer retaliation include demotion, termination or unnecessarily moving the employee to unfavorable shifts.