Understanding California Overtime Laws: Part-Time Employee Rights

California's overtime laws are designed to protect employees from being overworked and underpaid. The laws apply to both part-time and full-time employees, ensuring that they receive fair compensation for working beyond the standard work hours. In California, employees who work more than eight hours in a day or forty hours in a week are entitled to overtime pay, which is typically calculated as one-and-a-half times their regular rate of pay. This overtime compensation is often referred to as time and a half. Additionally, employees who work twelve or more hours in a day or more than eight hours on the seventh consecutive day of the workweek are eligible for double their standard rate, commonly known as double time. It's important to note that there are exemptions to these laws, such as for executive employees or independent contractors. Understanding these laws is crucial for both employees and employers to ensure compliance and maintain a healthy work-life balance.

Who is eligible for overtime pay in California?

In California, both part-time and full-time employees are eligible for overtime pay if they work more than eight hours in a day or more than 40 hours in a week. This is because the law is concerned with the number of hours worked, rather than how an employer classifies their employees.

However, there are some categories of workers who are not eligible for overtime pay. These include:

• Employees who are directly employed by the city, county, or state.
• Employees in a union, covered by a collective bargaining agreement.
• Exempt professionals, administrators, and executives.
• Certain "app-based" rideshare and delivery drivers.
• Employees who work for a parent, child, or spouse (though they may still be eligible if their relative runs a company that is not a sole proprietorship).

Additionally, agricultural and domestic workers are entitled to overtime pay, but there are special overtime rules that apply to their workplaces.

To be considered an exempt employee, workers must typically meet two conditions. Firstly, they must have a \"white-collar\" job, consisting of administrative, professional, or executive duties that require the worker to exercise independent judgment and discretion. Secondly, they must receive a fixed salary that is at least twice the minimum wage for full-time work.

How much overtime pay are employees entitled to?

In California, overtime pay is 1.5 times an employee's regular rate of pay, also known as "time and a half". This applies to employees who work more than eight hours in a single day, more than 40 hours in a single week, or more than six consecutive days in a workweek.

Employees are also entitled to "double time", which is double their regular rate of pay, in two scenarios. Firstly, if they work more than 12 hours in a single day, and secondly, if they work more than eight hours on the seventh day of work in a single workweek.

It is important to note that not all employees are eligible for overtime. Exemptions include employees who are directly employed by the city, county, or state, most union members covered by a collective bargaining agreement, and certain professionals, administrators, and executives.

When is an employer required to pay overtime?

In California, employers are required to pay overtime to non-exempt employees who are 16 or 17 years old and permitted to work instead of attending school, or 18 years or older.

Employees are entitled to overtime pay in the following scenarios:

• Working more than eight hours in a single workday.
• Working more than 40 hours in a single workweek.
• Working more than six consecutive days in a workweek.
• Working more than 12 hours in a single workday.
• Working more than eight hours on the seventh consecutive day of the workweek.

The overtime rate of pay in California is generally "time and a half", meaning one and a half times the worker's regular rate of pay. In some cases, employees may be eligible for "double time", or twice their regular rate of pay, for working:

• More than 12 hours in a single workday.
• More than eight hours on the seventh consecutive day of the workweek.

It is important to note that there are exemptions to overtime laws, such as for executive employees or outside salespeople. Additionally, independent contractors and certain types of workers, such as unionized employees or agricultural workers, may have different overtime rules or be exempt from overtime pay.

What is the difference between exempt and non-exempt employees?

In California, the distinction between exempt and non-exempt employees is important for understanding overtime laws. While non-exempt employees are entitled to overtime pay, certain protections, and breaks, exempt employees are not. This classification is determined by California labor law, not the employer.

Exempt Employees

Exempt employees in California are those who are not protected by wage and hour laws. They are not entitled to overtime pay, even if they work more than 40 hours in a week or 8 hours in a day. Exempt employees are also not entitled to minimum wage protections or meal and rest breaks.

To be considered exempt, an employee generally needs to meet a strict duties test, with more than 50% of their time spent on exempt job duties. Exempt employees typically include those in senior management, executive, administrative, and professional roles. These employees usually exercise discretion and independent judgment in their jobs, making decisions after evaluating various possibilities.

It's important to note that job titles do not determine an employee's exempt status. Instead, it is the actual job duties that matter. For example, an employee with an impressive job title may not qualify as exempt if their duties do not meet the requirements for an exemption.

Additionally, there are minimum salary requirements for exempt employees in California. They must earn a minimum monthly salary of no less than twice the state minimum wage for full-time employment. As of January 1, 2021, this amounts to $58,240 per year for companies with 26 or more employees, and $54,080 per year for companies with 25 or fewer employees.

Non-Exempt Employees

Non-exempt employees, on the other hand, are protected by California wage and hour laws. They are entitled to overtime pay, minimum wage, and meal and rest breaks. Non-exempt employees typically include those in entry-level positions, such as restaurant wait staff, construction workers, and security guards.

Like exempt employees, the determination of non-exempt status is based on the actual job duties performed, rather than the job title or whether the employee is salaried. For example, an employee with an exempt job title may still be classified as non-exempt if the performance of their work falls within a category for exemption.

In terms of compensation, non-exempt employees are typically paid by the hour, while exempt employees are often salaried. However, this is not always the case, as some exempt employees may be paid by the hour, and not all salaried employees are automatically exempt.

Overtime Laws

Under California law, non-exempt employees are entitled to overtime pay if they work more than 40 hours in a week or more than 8 hours in a day. They must be paid one and a half times their normal rate for each hour of overtime worked. This is often referred to as "time and a half."

For example, if an employee usually earns $20 per hour and works 8 hours per day from Monday to Friday, their employer would need to pay them $30 per hour if they work on Saturday.

California also has a daily overtime standard, meaning employees are entitled to overtime pay if they work more than 8 hours in a day, even if they work fewer than 40 hours in a week.

Misclassification

It is important for employers to correctly classify their employees as exempt or non-exempt. Misclassification can result in significant consequences, including class-action lawsuits and fines. Employees who believe they have been misclassified can handle it internally by bringing the issue to their supervisor or human resources department. If this is unsuccessful, they may need to seek legal assistance and file a wage/hour lawsuit against their employer.

What to do if an employer doesn't pay overtime?

In California, overtime laws apply to all employees, regardless of whether they are part-time or full-time. If an employer fails to pay overtime, there are several steps that an employee can take to address the issue:

• Verify eligibility: Before taking any action, it is important to confirm that you are eligible for overtime pay. In California, eligible employees are entitled to overtime pay if they work more than 40 hours in a week or more than 8 hours in a day. Certain exemptions exist for specific categories of employees, such as executive employees or agricultural workers.
• Discuss with your employer: If you believe you are owed overtime pay, the first step is to speak with your employer. Provide them with the exact dates and hours worked to support your claim. It is recommended to document these interactions, as your employer may attempt to intimidate or push back on your claim.
• File a wage claim: If discussing the issue with your employer does not resolve the matter, you can file a wage claim with the Division of Labor Standards Enforcement (DLSE) or the Labor Commissioner's Office. They will assign your claim to a Deputy Labor Commissioner who will determine the best course of action, which may include a conference or a hearing.
• Legal representation: Consider consulting an employment or wage and hour lawyer. They can help you understand your rights and explore your legal options, including filing a complaint with the state or federal labor department or pursuing a lawsuit.
• File a lawsuit: If all else fails, you have the option to file a lawsuit against your employer in court to recover lost wages and seek damages. This is a more complex route that may require legal representation.
• Report to the Department of Labor: Additionally, you can file a report with the United States Department of Labor, as they enforce overtime rules at the federal level.

It is important to keep detailed records of the hours worked and any relevant documentation, such as check stubs and timecards, to support your claim. California law requires employers to maintain accurate time records and pay for all hours worked, whether authorized or not.

Frequently asked questions