Generally, in California, laws require nonexempt employees who work more than eight hours in any workday or more than 40 hours in any workweek to receive 1.5 times his or her regular rate of pay. This overtime rate also applies if for the first eight hours worked on the seventh consecutive day of work in a workweek.
But when an employee works more than 12 hours in a work day, or if an employee works more than 8 hours on the seventh consecutive day of work in a workweek, then the employer must pay the employee double the employee’s regular rate.
Moreover, simply paying either 1.5, or double, the hourly rate of an employee does not satisfy the California Labor Code. The employer must pay 1.5, or double, the employee’s “regular rate” – which is not necessarily the hourly rate. Generally, the regular rate is calculated by taking all the compensation earned by the employee, and dividing it by hours worked. Thus, if an employee gets paid commission + an hourly rate, and then works overtime, but the overtime rate is only 1.5 times the regular rate, there is likely an overtime violation.
Wage and hour laws are very technical. An employer can suffer severe consequences as a result of a well-intentioned, but illegal, policy or practice. Please contact us for a FREE initial consultation. As experienced overtime attorneys, we can help.