Anaya Nolan
California labor laws are pro-employee, and employers must keep track of their employees' working hours, including clock-in and clock-out times, and provide accurate break records. Employers can cut an employee's hours or pay, but there are important limits. For example, employers cannot break an employment contract, and they cannot cut pay for illegal reasons, such as discrimination or retaliation. Employers must also ensure that pay is not reduced below the state or federal minimum wage or overtime requirements.
| Characteristics | Values |
|---|---|
| Full-time workweek | Between 32 and 40 hours |
| Overtime | Entitled to overtime pay for hours worked over 40 in a week or more than 8 hours in a day |
| Minimum wage | $15.50/hour, increasing to $16 on January 1, 2024 |
| Meal breaks | 30-minute unpaid meal break if working more than 5 hours per day |
| Rest breaks | 10-minute rest break for every 4 hours worked |
| Time tracking | Employers must keep accurate records of working hours and break times |
| Exempt vs. non-exempt | Classification based on salary and duties tests; non-exempt employees are entitled to overtime pay and minimum wage |
| Pay deductions | Employers can only make deductions from pay under certain circumstances; employees can take legal action for unlawful deductions |
| Hour reductions | Employers can generally reduce hours, but not for illegal reasons such as discrimination or retaliation |
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![California Labor Code [2025 Edition]](https://m.media-amazon.com/images/I/51wmxjo9gzL._AC_UL320_.jpg)
What You'll Learn
Employee rights
In California, a full-time workweek is typically between 32 and 40 hours, though the Affordable Care Act (ACA) considers an employee full-time if they work 30 hours or more. While employers can generally cut an employee's hours, there are important limits to this. Employers cannot, for example, break an employment contract, nor can they cut pay for illegal reasons, such as discrimination or retaliation. Employers must also continue to adhere to minimum wage laws and cannot cut pay retroactively.
In California, employers must keep track of their employees' working hours, including clock-in and out times, as well as accurate break records. Non-exempt employees, whether full-time or part-time, are subject to overtime rules, meaning they are entitled to overtime pay if they work more than 40 hours in a week or more than 8 hours in a day. Exempt employees, on the other hand, are paid a consistent salary regardless of the number of hours worked and are not eligible for overtime pay. It is important to note that California law presumes all employees are non-exempt unless proven otherwise.
If you believe your employer has illegally cut your hours or pay, you may wish to seek legal advice. Competent employment lawyers can explain your full rights as an employee and the damages to which you may be entitled.
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Employer obligations
In California, employers are generally allowed to reduce the hours of their full-time employees. However, there are several obligations and restrictions that employers must adhere to when making such changes.
Firstly, employers must ensure that they properly classify their employees as exempt or non-exempt based on salary and duties tests. This classification is crucial as it determines which employees are entitled to overtime pay, minimum wage, and other benefits and protections under California law. Non-exempt employees, whether full-time or part-time, are generally subject to overtime rules and are entitled to overtime pay if they work more than 40 hours in a week or more than 8 hours in a day. Exempt employees, on the other hand, are typically salaried employees who are not eligible for overtime pay and receive a consistent salary regardless of the number of hours worked.
Employers are required to keep accurate records of their employees' working hours, including clock-in and clock-out times, as well as break records. This helps ensure compliance with wage and hour laws and fair compensation for employees. Additionally, employers must compensate workers for all business expenses, including those incurred when using personal vehicles for work purposes.
When it comes to reducing employees' hours, employers must ensure that they do not violate any laws or employment contracts. While employers can generally cut future wages, they must inform employees of these changes ahead of time. Additionally, employers cannot reduce pay below the state or federal minimum wage and must comply with the Fair Labor Standards Act (FLSA) requirements for minimum wage and overtime pay for non-exempt employees. Employers are also prohibited from cutting pay for illegal reasons, such as discrimination or retaliation, and cannot retroactively reduce wages that have already been earned. If employees are under a union contract or collective bargaining agreement (CBA), employers must renegotiate the terms with union representatives before making any wage reductions, unless the CBA already grants them the authority to do so.
In summary, while California employers have the right to reduce the hours of their full-time employees, they must comply with various state and federal laws regarding employee classification, wage and hour regulations, record-keeping, and notification of any changes. Failure to meet these obligations can result in legal consequences and financial risks for employers.
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Exempt vs. non-exempt employees
In California, the majority of employees are considered non-exempt. Non-exempt workers are protected by wage and hour laws, which means they are entitled to overtime pay, a minimum wage, and meal and rest breaks. Employers must abide by California law for every non-exempt employee they hire.
Exempt workers, on the other hand, are not covered by these protections. This means that employers can decide how to compensate exempt employees, whether to award overtime pay, and how to handle things like lunch breaks. To be considered exempt, an employee must meet three key criteria: they must earn enough pay, have a qualifying exemption classification (executive/managerial, administrative, or professional), and primarily perform exempt work.
It is important to note that it is California labor law, not the employer, that determines whether a worker is exempt or non-exempt. While job titles may be similar, it is the actual job duties that determine whether an employee is exempt or non-exempt. For example, an employee with an administrative job title who mostly performs non-exempt work duties would be considered non-exempt based on the labor they provide.
If an employer misclassifies an employee as exempt, the employee may be able to handle it internally by bringing the issue to their boss or the human resources department. If this does not work, they can seek legal counsel or file a wage/hour lawsuit against their employer to recover unpaid wages and other compensation.
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Minimum wage
In California, the minimum wage is adjusted annually based on a set formula. The state law dictates that employers cannot make deductions that would result in an employee earning less than the minimum wage. The Fair Labor Standards Act (FLSA) also prevents employees from earning less than the minimum wage.
California Labor Laws allow employers to make deductions from paychecks, but there are restrictions on the reasons and amounts withheld. For example, it is unlawful for employers to collect, take, or receive any gratuities given or left for an employee.
Employees in California are protected by federal and state laws that dictate what deductions can and cannot be made by employers. If an employee believes their employer has unlawfully made deductions from their paycheck, they can take legal action.
In California, employees cannot be employed for more than eight hours in a workday or more than 40 hours in a workweek unless they receive one and one-half times their regular rate of pay for all hours worked over 40. A workweek is defined as a fixed and regularly recurring period of 168 hours, or seven consecutive 24-hour periods.
Minors 16 or 17 years old who are not required by law to attend school may be employed for the same hours as adults and are subject to the same overtime provisions.
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Overtime pay
California has strict laws regarding overtime pay. Employers should be aware of their obligations when it comes to overtime pay as getting it wrong can be illegal and costly. For example, employers may be responsible for paying back up to three years' worth of unpaid overtime wages, as well as facing legal penalties.
Overtime laws in California are unique compared to the rest of the United States. While overtime is calculated on a weekly basis in most states, California also calculates overtime on a daily basis. This means that overtime pay is required for hours worked beyond eight in a given workday, as well as for hours worked beyond 40 in a given workweek.
The overtime pay rate is typically calculated at 1.5 times the regular rate of pay, often referred to as "time and a half". For example, a minimum wage worker in California earning $16.00 per hour would receive an overtime pay rate of $24.00 per hour.
There are some exemptions from the overtime law, meaning that certain classifications of employees are not entitled to overtime pay. For example, minors aged 16 or 17 who are not required by law to attend school may be employed for the same hours as an adult and are therefore not entitled to overtime pay.
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Frequently asked questions
A full-time workweek in California is typically between 32 and 40 hours, although the Affordable Care Act (ACA) considers an employee full-time if they work 30 hours or more.
Yes, an employer can generally cut an employee's hours, but there are important limits. Employers cannot break an employment contract, and they cannot cut hours for illegal reasons, such as discrimination or retaliation.
Yes, an employer can cut an employee's future wages, but they must inform the employee ahead of time. Employers cannot reduce pay below the state or federal minimum wage, and they cannot retroactively cut wages that have already been earned.
Employees who think their rights have been violated should seek legal advice as soon as possible. Competent employment lawyers can explain an employee's rights and the damages to which they are entitled.
In California, non-exempt workers are entitled to a 10-minute rest break for every 4 hours worked and a 30-minute meal break if they work more than 5 hours in a day. Exempt employees are not automatically granted rest breaks, but they are entitled to an unpaid 30-minute meal break if they work more than 5 hours per day.
![California Welfare and Institutions Code Part I [2025 Edition]](https://m.media-amazon.com/images/I/51uwZrO5Y9L._AC_UL320_.jpg)
