Weekly Overtime
Overtime compensation required for hours worked beyond 40 in a single workweek under both California and federal law.
What Is Weekly Overtime?
Weekly overtime is the requirement to pay non-exempt employees at 1.5 times their regular rate of pay for all hours worked beyond 40 in a workweek. This overtime trigger exists under both California law and the federal Fair Labor Standards Act (FLSA).
In California, weekly overtime operates alongside daily overtime, but hours already compensated as daily overtime don't get "double-dipped"—they're not counted again for weekly overtime purposes.
Weekly Overtime Basics
The 40-Hour Threshold
- Hours 1-40 in a workweek: Regular rate
- Hours 41+: Time-and-a-half (1.5× regular rate)
Interaction with Daily Overtime
California requires tracking both daily and weekly overtime:
- Daily overtime hours count toward the 40-hour weekly threshold
- But the daily overtime premium already paid covers those hours
- Weekly overtime only applies to hours not already paid as daily overtime
Defining the Workweek
A workweek is a fixed, recurring 168-hour period (seven consecutive 24-hour days):
Employer Flexibility
- Employers choose when the workweek starts
- Common choices: Sunday 12:00 AM, Monday 12:00 AM, Saturday 12:00 AM
- The choice should be based on legitimate business reasons
Requirements
- Once established, the workweek should remain consistent
- Must be communicated to employees
- Cannot be changed to avoid overtime obligations
Important Rules
- No averaging: Hours cannot be averaged across multiple workweeks
- No manipulation: Changing the workweek to avoid overtime is prohibited
- Pay period alignment: The workweek doesn't have to match the pay period
Calculating Weekly Overtime
Basic Calculation
Employee works 48 hours in one week at $20/hour:
| Hours | Rate | Amount |
|---|---|---|
| 40 regular | $20.00 | $800.00 |
| 8 overtime | $30.00 | $240.00 |
| Total | $1,040.00 |
With Daily Overtime Interaction
Employee works the following schedule at $20/hour:
| Day | Hours | Daily OT? |
|---|---|---|
| Mon | 9 | 1 hour at 1.5× |
| Tue | 9 | 1 hour at 1.5× |
| Wed | 9 | 1 hour at 1.5× |
| Thu | 9 | 1 hour at 1.5× |
| Fri | 9 | 1 hour at 1.5× |
| Total | 45 | 5 hours daily OT |
Calculation:
- 40 regular hours × $20 = $800
- 5 daily OT hours × $30 = $150
- Weekly hours over 40 that weren't daily OT: 0 (all 5 OT hours were already paid as daily OT)
- Total: $950
Complex Example: Mixed Daily and Weekly OT
Schedule at $20/hour:
| Day | Hours | Daily OT |
|---|---|---|
| Mon | 8 | 0 |
| Tue | 8 | 0 |
| Wed | 8 | 0 |
| Thu | 8 | 0 |
| Fri | 8 | 0 |
| Sat | 6 | 0 |
| Total | 46 | 0 |
No daily overtime (no day exceeded 8 hours), but:
- 40 regular hours × $20 = $800
- 6 weekly OT hours × $30 = $180
- Total: $980
Weekly Overtime in Different Scenarios
Part-Time Employees Working Extra
Part-time employees who exceed 40 hours are entitled to weekly overtime:
Example: Usually works 20 hours/week, but covers for absent coworker:
- Regular week: 20 hours × $18 = $360
- Heavy week: 45 hours = (40 × $18) + (5 × $27) = $855
Multiple Employers
- Each employer calculates overtime independently
- Working 20 hours for Employer A and 25 hours for Employer B = no overtime with either
- But: Related entities may be considered "joint employers" requiring combined hours
Salaried Non-Exempt Employees
Salaried employees who don't meet exemption tests:
- Must still track hours
- Entitled to overtime for hours over 40 (and over 8 daily)
- Regular rate = weekly salary ÷ 40 hours
Workweek Spanning Pay Periods
When a workweek spans two pay periods:
Option 1: Pay Each Period's Overtime Separately
Calculate and pay overtime in each pay period based on hours in that period.
Option 2: Pay Weekly Overtime in Following Period
- Pay all hours at regular rate in first period
- Pay overtime premium in the pay period when the workweek ends
Both methods are acceptable if consistently applied and overtime is paid by the next regular payday.
Common Weekly Overtime Mistakes
Averaging Across Weeks
Wrong: "Employee worked 50 hours week 1 and 30 hours week 2, averaging 40 hours."
Right: Week 1 has 10 hours overtime; week 2 has no overtime.
Bi-Weekly Averaging
Wrong: "Employee worked 38 hours in first week and 42 hours in second week of a bi-weekly pay period = 80 hours at regular rate."
Right: Second week has 2 hours of overtime, regardless of first week's hours.
Ignoring Daily Overtime
Wrong: Only calculating weekly overtime and missing daily overtime.
Right: Track both—pay whichever results in higher compensation for each hour.
Using Wrong Rate
Wrong: Paying overtime based only on base hourly rate.
Right: Calculate regular rate including all compensation (bonuses, differentials, etc.).
Managing Weekly Overtime
Scheduling Strategies
- Distribute hours evenly: Spread work among available employees
- Set weekly limits: Establish approval thresholds before hitting 40 hours
- Track in real-time: Use systems that show cumulative weekly hours
- Plan ahead: Build schedules considering weekly hour limits
- Cross-train staff: Have coverage options to avoid overtime
Technology Tools
Effective workforce management systems:
- Calculate running weekly totals in real-time
- Alert managers when employees approach 40 hours
- Forecast weekly overtime based on scheduled shifts
- Account for both daily and weekly overtime in cost projections
- Maintain accurate workweek tracking across pay periods
Policy Considerations
- Require pre-approval for work beyond scheduled hours
- Establish clear communication about weekly hour limits
- Train managers on overtime obligations
- Document all overtime authorization
Weekly Overtime and Alternative Workweeks
Under an alternative workweek schedule:
- Weekly overtime still applies after 40 hours
- But daily overtime threshold is extended (e.g., 10 hours for 4/10 schedule)
- Can reduce total overtime by concentrating hours in fewer, longer days
Enforcement and Penalties
The Labor Commissioner and courts actively enforce weekly overtime requirements:
- Back pay for all unpaid overtime
- Liquidated damages (up to equal amount of unpaid wages)
- Waiting time penalties if wages not paid upon termination
- PAGA penalties
- Interest and attorney's fees
Systematic underreporting or unpaid weekly overtime often leads to class action litigation with significant settlements.
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