California Overtime Pay Laws
First thing you should know is that the state of California is one of the most employee friendly states in the US. As a comparison, we can look at Federal overtime laws and see that Federal laws only require overtime rates of 1.5 times your regular rate of pay to be paid if you work more than 40 hours. Where as in California, not only do you get overtime rates after 40 hours, but you also get overtime pay if you work more than 8 hours a day.
These benefits are not for everyone however. In order to receive overtime you must be considered an hourly or non-exempt employee. If you are a salary or exempt employee then you are not entitled to overtime pay.
Salary or exempt employees must meet certain criteria under the law, otherwise employers would classify all of their employees as salaried in order to avoid having to pay overtime. California labor law is very specific about who can be exempt from overtime. You must fall under a specific exemption. The DLSE covers all of them in detail.
Some of the most commonly misused exemptions are:
• Inside sales exemption
• Outside sales exemption
• Software, Computer IT exemption
• Executive exemption
• Administrative exemption
• Professional exemption
The most important thing to understand about exemptions is that your job title makes no difference. Exemptions are based on the employee’s job duties and job function. If you are being misclassified, you are likely owed back pay for your overtime wages.
Labor law is complex; if you have any questions regarding your employment it is recommended that you contact a California labor law attorney who can help you understand your rights and in many cases will review your situation without charge.
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