Calculating Overtime Pay in California

It is an infringement of your rights as an employee if you are not paid the overtime earnings to which you are entitled. Employers sometimes avoid paying overtime compensation by incorrectly designating workers as exempt or independent contractors.

In actuality, working additional, unpaid hours results in substantial financial losses for employees throughout California, not to mention the loss of personal time.

An Overview of Unpaid Overtime

One of California employers' most common wage violations is denying employees overtime. California workers are entitled to 1.5 times their pay rate if they work over 8 hours a day or 40 hours a week. Also, employees are entitled to 1.5 times their pay rate for the first 8 hours on a 7th consecutive work day.

California labor laws state that workers qualify for two times the pay rate for hours above 12 in any workday or hours above the first aid on the 7th consecutive workday. Note that some California employees are exempt from overtime pay. 

In California, non-exempt employees are paid hourly wages and have a right to overtime pay. Examples of exempt employees include salespeople and those working in white-collar jobs, for example, high-level administrative employees in managerial positions and professionals. Before you can receive overtime pay, your employer must show that you fit in one of these exemptions or a is an an an exempt employee.

Your employer owes you the difference between what you should have, what they should have, and what they paid you if they fail to pay your overtime hours. Time and a half hours suggest you are eligible for 50% of your hourly rate, added to your regular wage. For instance, if your employer pays you  $12 per hour, you should earn $18 per hour.

Example: Shayla's employer pays her $16 per hour as a regular rate for her work hours. Shayla worked 10 hours on Monday, 14 hours on Tuesday, and 4 hours each on Wednesday, Thursday, and Friday. Since she worked only 6 hours daily, the employer is not required to pay Shayla weekly overtime. 

However, because she worked for more than 8 hours on Monday, Shayla qualifies for time and a half for two extra hours. For every additional hour, she earns $8. So, $8 x 2 hours equals $16. Shayla worked for over 8 hours on Tuesday. Therefore, she qualifies for time and a half for the 8 to 12 hours. So $8 x 4 hours equals $32. Shayla's employer owes her unpaid overtime in California, and the pay is $80.

How to Calculate Daily and Weekly Overtime in California

According to California labor laws, a normal workday is 8 hours. Therefore, you are entitled to overtime pay if you work over 8 hours in a workday or over six days in a workweek. Employees should receive overtime pay for hours they work beyond eight and up to 12 hours a day. You are entitled to a time for the first 8 hours if you work seven days. Employers should pay employees 1.5 times their regular pay in both scenarios.

You are also paid overtime if you work for over 12 hours in a work day or more than 8 hours on the 7th straight day. However, your employer should pay you twice your regular rate. Even though California law provides several exemptions to the rules, overtime pay laws do not apply to two specific workers. Also, at times overtime is paid on a case-to-case basis.

The Regular Rate Of Pay

California overtime pay is based on the regular pay rate. This should be at least the California minimum wage. Normal wages include:

• Salary
• Hourly pay
• Commissions and piecework

Usually, when calculating the regular wages, you base them on 8-hour work days and a 40-hour work week. Some employees work on different numbers of days a week. The Industrial Welfare Commission orders employees who work 8 hours per day and 40 hours per week to receive overtime. If you work on an alternative alternator dual or below 40 hours in a work week, for instance, 35 hours, you are not entitled to overtime pay. You must work beyond 40 hours like everyone else.

Regular Rate of Pay Formula

Your normal rate is equal to your hourly rate. This includes any differences in shifts and the rate of your employer per hour. If you receive a monthly salary, your wages could be multiplied by 12 to know your pay per annum. You could divide your annual salary by 52 to know your weekly wages. Also, you could divide the weekly salary by the number of hours you work to find your hourly pay.

Unauthorized Overtime Work Must Be Paid Time and a Half

The law requires California employers to pay employees for overtime work even though overtime work is not authorized in California. Authorized overtime means that the employer did not notify employees to work overtime by communicating.

If you work overtime without first asking for permission from your employer, you could face disciplinary action. Therefore you cannot hide your overtime hours from your employer. Also, employers are prohibited from Asking employees to work for a few hours off the clock Without overtime pay.

If you work overtime and your employer denies you overtime pay, you want to contact a California labor lawyer. Also, if you have queries or want to discuss your unpaid overtime issue, your attorney could help you recover your loss.