California Overtime Pay Rules
California rules regarding overtime pay favor employees more than even federal regulations on the same. The rules indicate the how overtime pay is to be calculated, and the type employees who are entitled to payment for the extra hours worked.
What California Overtime Rules Say
Overtime pay in California is primarily calculated based on the number of hours worked each day. Nearly all nonexempt employees in California’s private sector and who are not under the collective bargaining agreements are covered by this rule. When determining overtime pay, the weekly totals are also taken into account.
Overtime calculations should be done in an orderly manner. The first step involves finding out the hours that are to be paid as overtime. After that, you then decide whether to pay one and a half times or double for hours. After that, you can then find what ‘regular’ rate ‘ pay to use in calculating the pay for the extra hours.
What is Regular Rate Pay?
Regular rate is used to refer to the actual rate of pay to an employee after considering all hourly earning and any compensations the employee is entitled to; it does not just mean an employee’s hourly amount of pay. The regular rate is used when calculating overtime pay for California employees and includes almost any form of pay an employee receives.
Weekly Overtime Pay
When determining weekly overtime pay, only the hours worked at straight-time are considered. It prevents what could be termed as a ‘ pyramiding’ of the overtime, where employees received overtime pay for already paid overtime.
What About Nonexempt Employees Who are on Salary?
A salaried nonexempt employee is entitled to overtime pay according to California overtime rules. The employee must receive pay for all hours worked, which must include payments for daily and weekly overtime. The fact that a nonexempt employee is on a salary does not in any way relieve you of the obligation to pay them for the extra hours they work.
Exceptions For Payment of Overtime
Specific industries are exempted from certain rules of calculating overtime, as contained in the Wage Orders. While there are no rules allowing employees refuse to work overtime hours in California, company policies or union contracts on the issue could be used to effect such, allowing an employee not to work extra hours.
There are limits, though, regarding the number of hours you may require your employees to be at work, as stated out in the Wage Orders. As an employer, you would need to acquaint yourself with these rules and exceptions to avoid lawsuits regarding payment of overtime.
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