Overtime

What Is Overtime?

Overtime refers to the additional compensation employers must pay when non-exempt employees work beyond certain hour thresholds. In California, overtime rules are more employee-friendly than federal standards, requiring premium pay for both daily and weekly overtime.

Understanding California's overtime requirements is essential for scheduling compliance, payroll accuracy, and avoiding costly wage and hour claims.

California Overtime Requirements

California has a dual overtime system based on both daily and weekly hours:

Time-and-a-Half (1.5× Regular Rate)

Employers must pay 1.5 times the regular rate of pay for:

Hours worked over 8 in a workday
Hours worked over 40 in a workweek
First 8 hours worked on the seventh consecutive day of a workweek

Double-Time (2× Regular Rate)

Employers must pay 2 times the regular rate for:

Hours worked over 12 in a workday
Hours worked over 8 on the seventh consecutive day of a workweek

Overtime Rate Summary

Scenario	Rate
Hours 8.01-12 in a day	1.5×
Hours over 12 in a day	2×
Hours over 40 in a week	1.5×
7th consecutive day (hours 1-8)	1.5×
7th consecutive day (hours 8+)	2×

California vs. Federal Overtime

Aspect	California	Federal (FLSA)
Daily overtime	Yes (after 8 hours)	No
Weekly overtime	After 40 hours	After 40 hours
Double-time	Yes (specific situations)	No
7th day rules	Yes	No

California employees benefit from whichever law provides greater protection.

Calculating Overtime

Step 1: Determine the Regular Rate

The regular rate includes all compensation divided by hours worked:

Base hourly rate
Shift differentials
Non-discretionary bonuses
Piece-rate earnings
Commissions

Step 2: Apply Daily Overtime First

Check each day for hours over 8 (time-and-a-half) or over 12 (double-time).

Step 3: Calculate Weekly Overtime

For weekly hours over 40 not already compensated as daily overtime.

Example Calculation

An employee earning $20/hour works the following schedule:

Day	Hours	Regular	OT (1.5×)	DT (2×)
Mon	10	8	2	0
Tue	9	8	1	0
Wed	13	8	4	1
Thu	8	8	0	0
Fri	8	8	0	0
Total	48	40	7	1

Pay calculation:

Regular: 40 hours × $20 = $800
OT (1.5×): 7 hours × $30 = $210
DT (2×): 1 hour × $40 = $40
Total: $1,050

Workweek Definition

A workweek is a fixed, recurring period of 168 consecutive hours (seven 24-hour periods). Key points:

The employer defines the workweek start day and time
Once established, it should not change frequently
The workweek doesn't have to match the pay period
Changes to manipulate overtime are prohibited

Example

If your workweek starts Sunday at 12:00 AM:

Week 1: Sunday 12:00 AM through Saturday 11:59 PM
Weekly overtime is calculated independently for each workweek
Hours cannot be averaged across weeks

Common Overtime Scenarios

Working Multiple Shifts in One Day

If an employee works two shifts with a gap:

All hours in the same workday are combined
Daily overtime applies to total hours worked that day
Break between shifts doesn't reset the daily count

Working Seven Consecutive Days

The seventh consecutive day rule applies when:

An employee works all seven days of a workweek
The first 8 hours are paid at 1.5×
Hours beyond 8 are paid at 2×

Shift Workers and Overnight Shifts

For shifts crossing midnight:

The workday starts when the shift begins
All hours are counted in that workday
Next shift starts a new workday

Overtime Exemptions

Certain employees are exempt from overtime requirements. See Overtime Exemption for details on:

Executive exemption
Administrative exemption
Professional exemption
Computer professional exemption
Outside sales exemption

Exempt employees must meet specific salary and duties tests.

Alternative Workweek Schedules

California permits alternative workweek schedules that allow employees to work up to 10 hours per day without daily overtime, if:

Properly adopted through employee vote
Reported to DLSE
Followed consistently

Common examples:

Four 10-hour days (4/10 schedule)
9/80 schedules

Overtime Compliance Issues

Unauthorized Overtime

Employers must pay for all hours worked, even if unauthorized
"Suffered or permitted to work" standard applies
Employers can discipline for policy violations, but must still pay

Off-the-Clock Work

Common violations include:

Pre-shift preparation
Post-shift cleanup
Working through meal breaks
Responding to emails/calls from home

Misclassification

Treating non-exempt employees as exempt to avoid overtime results in:

Back pay for unpaid overtime
Liquidated damages
Penalties and interest
Class action exposure

Overtime Management Strategies

Scheduling Best Practices

Track hours in real-time: Use time and attendance systems with overtime alerts
Require approval: Implement pre-approval for overtime work
Distribute hours: Spread work among employees to minimize overtime
Monitor approaching thresholds: Alert managers when employees near 8 or 40 hours
Cross-train employees: Have backup coverage to avoid overtime situations

Technology Solutions

Modern scheduling platforms help manage overtime by:

Forecasting overtime before it occurs
Alerting supervisors to approaching thresholds
Calculating overtime costs in real-time
Tracking daily and weekly hours automatically
Managing alternative workweek schedules

Penalties for Overtime Violations

Non-compliance can result in:

Penalty Type	Amount
Unpaid wages	All overtime owed
Liquidated damages	Equal to unpaid wages
Waiting time penalty	Up to 30 days' wages
PAGA penalties	$100-$200 per pay period
Interest	10% per year
Attorney's fees	If employee prevails

Class action lawsuits for systematic overtime violations can result in multi-million dollar settlements.

Proper overtime management protects both employees' rights and employers' financial stability.