].↥, See e.g., Cal. Both federal and state law allow an employee to recover unpaid overtime that the employee earned. The most notable include: During this process, employees may not be punished or retaliated against for expressing opinions concerning the alternative workweek election or for opposing or supporting its adoption or repeal.71, Importantly, even if this procedure is adopted and an alternative workweek schedule is adopted, the employer still must pay overtime for hours worked in excess of 10 hours per workday or 40 hours in a workweek.72, The rate of overtime compensation is usually one-and-a-half times the employee’s regular rate of pay. 3.↥, Cal. First, identify those hours that must be paid on an overtime basis, then decide whether you need to pay time-and-one-half or double-time for those hours, then determine the "regular rate" you must use to calculate the overtime pay. 8, §§ 11010–11170, subds. Whether the employer imposes an on-site living requirement; How much time the employee is given to report after being called in to work; Limits on the distance from the employer the employee is realistically free to travel while on call; The frequency with which the employee is called in to work; Whether the employee is free to trade on-call duties with other employees; and, Whether the employee actually engages in personal activities while on call., The employer knew or should have known that the employee was working.. § 207(a)(1); Labor Code, § 510.↥, Time and Date AS, The 7 Days of the Week (accessed May 5, 2018), available here (Opens in new window).↥, Labor Code, § 500, subd. Thus, under California law, the total overtime pay is $18.00. RESULT: This employee would be entitled to 1 hour of overtime at 2 times their regular rate of pay and 10 hours of overtime at 1.5 times their regular rate of pay. Employees are sometimes entitled to compensation for hours spent “on call.”91 An employee is considered on call if the employer can call them into work on a short notice. Overtime pay is determined according to an … When an employee’s on call time falls between those two extremes, courts will examine several factors to determine whether that time counts as “hours worked.” Those factors include: Courts have generally found that “hours worked” does not include on call hours when the employee is free to engage in personal activities and has a reasonable time to report to work (which might be as short as 20 or 30 minutes).96. Likewise, the employer must pay for hours, including overtime hours, that: So, even if an employee engages in work that the employer did not authorize, the employer must nevertheless compensate the employee. Code of Regs., tit. § 207(a)(1) [“Except as otherwise provided in this section, no employer shall employ any of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.”]; Labor Code, § 510 [“Any work in excess of eight hours in one workday . 31 overtime hours due – 6 double overtime hours = 25 regular overtime hours due. Regular Rate of Pay. (a) [“An employee may receive, in lieu of overtime compensation, compensating time off at a rate of not less than one and one-half hours for each hour of employment for which overtime compensation is required by law. § 207 [covering overtime].↥, 29 U.S.C. In this example, the employee worked one hour in excess of 12 hours on Saturday, and 5 hours in excess of 8 hours on Sunday (the seventh consecutive day she worked in the workweek). 3(c)(6).↥, Cal. . If you any attorneys or law firms mentioned on this website, you are initiating a professional relationship with us within the meaning of rule 7.3, subdivision (a)(2), of the California Rules of Professional Conduct. A machinist who must set up a machine or perform routine maintenance before operating the machine is entitled to be compensated for the time, including overtime, that is spent performing those tasks. In 2018, the California Supreme Court issued a decision significantly impacting how employers must calculate overtime pay when non-exempt employees receive a flat-sum bonus. $100 divided by 40 hours = $2.50 per-hour bonus. None of the employee’s daily overtime hours are credited toward their weekly overtime. )↥, Morillion v. Royal Packing Co. (2000) 22 Cal.4th 575, 582.↥, 29 U.S.C. The general rule is that the regular rate must be based on wages and most other forms of compensation an employee earns for work performed during the workweek, excluding overtime.51. 3(b)(8) [permitting alternative workweek schedules of three 12-hour days without requiring time-and-a-half pay].↥, Cal. How many hours did you work on each day of the workweek?†, (Exclude time spent on upaid meal breaks. § 216(b) [“Any employer who violates the provisions of section 206 or section 207 of this title shall be liable to the employee or employees affected in the amount of . Employees who choose to pursue a remedy for unpaid overtime will need to decide whether to seek relief under federal or state law. This post is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel. Here is an illustration of how overtime pyramiding can mistakenly occur: The problem in this example is that, beginning on the Thursday, all hours worked technically exceed 40 hours in the workweek even though many of those initial 40 hours were paid at an overtime rate. California Overtime Calculator . 8, §§ 11140, subd. (a); see Cal. Overtime wages are a type of increased payment that employees can earn when they work more than a certain number of hours in a workday or workweek. 11.↥, Cal. $21.75 x 10 regular overtime hours = $217.50 in regular overtime owed, RESULT: $480 in hourly wages for hours 1-40 ($12 x 40 hours) + $100 bonus + $217.50 in regular overtime compensation + $29 in double overtime compensation = $826.50 in total compensation. Step 2: Determine the number of overtime hours that must be compensated at 2 times the employee's regular rate of pay. 1(D).↥, Sullivan v. Oracle Corp. (2011) 51 Cal.4th 1191, 1206 [“The California Labor Code does apply to overtime work performed in California for a California-based employer by out-of-state plaintiffs in the circumstances of this case, such that overtime pay is required for work in excess of eight hours per day or in excess of 40 hours per week.”].↥, Labor Code, § 1171.5, subd. First, extra pay provides fair compensation to employees who sacrifice their free time by working long hours.4, Second, overtime wages incentivize employers to hire more employees so they can avoid paying higher overtime wages. 2006 rev.) Our easy-to-use calculator can help. Because overtime laws serve important goals, California courts interpret them liberally in favor of protecting employees.6 So when there are ambiguities about an overtime law, the courts will generally resolve them in the employee’s favor. Those include: each of these two numbers as the basis for calculating correctly... 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