In California, any employee older than 17 years of age, as well as any 16- or 17-year-old employee who is not legally required to attend school, must generally be paid one and one-half times the employee's regular rate of pay for all hours worked in excess of 40 hours in a workweek. For workers in all occupations except the manufacturing industry; mercantile industry; professional, technical, clerical, and similar occupations; public housekeeping industry, and transportation industry, employees must be paid one and one-half times their regular rate for work exceeding eight hours in a day or 40 hours in a week, and double time is required for hours in excess of 12 on any workday or in excess of eight on the seventh day. No employee may be required to report for work unless 10 hours have elapsed since the termination of the previous day's employment.
The overtime provisions are generally inapplicable to employees covered by collective bargaining agreements that provide premium wage rates for overtime work and a regular hourly rate of pay for the employees of not less than 30 percent more than the state minimum wage.
The following alternative work schedules are permitted without subjecting the employer to overtime liability:
In lieu of overtime pay, an employee may receive compensating time off at a rate of one and one-half hours for each hour of employment (or more if a higher rate of overtime is due) if provided under a collective bargaining agreement or a written agreement between an employer and the employee.
- Manufacturing employers who operate 24 hours a day, seven days a week who had a preexisting work arrangement may establish a regular work schedule that includes three regular workdays of not more than 12 hours per day, or three 12-hour workdays in one workweek and four 12-hour days in the following week, for an average workweek of 42 hours over a two-week period. Overtime must be paid for hours in excess of 12 per day or 40 per week. Such a schedule must be agreed to by at least two-thirds of the affected workweek.
- Specific rules, found in Wage Orders issued by government agencies, apply in certain industries including agricultural occupations; canning, freezing and preserving industry; industries handling products after harvest; amusement and recreation; broadcasting; household occupations; laundry, linen supply, dry cleaning, and dyeing industry; personal service industry; professional, technical, clerical, mechanical and similar occupations; public housekeeping (including certain employees working in residential child-care facilities); and transportation. Special rules apply for certain professional employees in the computer software field. Other special rules apply to employees of ski establishments, stables, licensed hospitals, and certain licensed physicians and surgeons.
Effective January 1, 2009, the exemption from overtime requirements for employees in the computer software field applies if the employee's hourly rate of pay is not less than $37.94 ($36.00 for 2008) or the annualized full-time salary equivalent of that rate, provided that all the other requirements for the exemption are met and that in each workweek the employee receives not less than $37.94 ($36.00 for 2008) per hour worked. Effective January 1, 2009, the minimum hourly rate of pay for licensed physicians and surgeons to qualify as exempt from the overtime rules is $69.13 ($65.59 for 2008). The wage rates are adjusted annually by an amount equal to a percentage increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers.
Effective January 1, 2007, certain private school teachers for grades K through 12 are exempt from the state overtime pay rules. The overtime exemption does not apply to tutors, teaching assistants, instructional aides, student teachers, day care providers, vocational instructors, or other similar employees.
Overtime wages must be paid no later than the payday for the next regular pay period after which the overtime wages are earned.