California has one of the most employee-friendly labor laws in the United States, including its statutes regarding unpaid overtime. Unfortunately, many employers routinely violate California’s employment laws by withholding an employee’s overtime wages. When an employer refuses to pay overtime wages due to an employee, a California employment attorney can help.
What is the rule for overtime pay in California?
Under the Fair Labor Standards Act (FLSA), employers must pay employees for each hour worked beyond eight hours daily or 40 hours per week. The overtime rate must be at least equal to one and one-half the employee’s standard hourly wage.
To be considered exempt from these rules, an employer must pay the employee a salary of at least $23,600 a year, and the employee must participate in job duties that are considered exempt. These exemptions are pretty rare, and most California employees qualify, under the law, for overtime.
California’s state-specific laws regarding overtime are more strict and protective of workers’ rights than federal law.
Overtime pay in California is calculated as follows:
- 1.5X the regular pay rate for each hour exceeding 8 hours, up to 12 hours in a workday.
- 1.5X the regular pay rate for each of the first 8 hours, on the 7th consecutive workday within a workweek.
- 2X the standard pay rate for every hour, over 12 hours in a workday.
- 2X the regular pay rate for every hour worked over eight hours on the 7th consecutive workday within a workweek.
Can an employer choose not to pay overtime?
California law explicitly requires an employer to pay overtime wages, even when the overtime was unauthorized. That means that, although an employer may legally discipline employees who violate overtime policies involving working without authorization, they must compensate that employee for the overtime work.
What makes an employee exempt from overtime?
According to California Labor Code, you must meet the definition of a legal exempt employee for your employer to be free from overtime pay obligations. Signing a contract agreeing to be exempt or receiving a salary instead of an hourly rate of pay does not automatically make you an exempt employee.
What are the eight categories of exempt employees?
California’s Labor Code explicitly lists categories of certain employees given exempt status, meaning that overtime pay does not apply.
#1 Professional, Administrative, and Executive Employees
To be an employee that is exempt from overtime in this category, also known as a white-collar exemption, the employee must meet the following requirements:
- The majority of an employee’s work (equal to or more than 50%) is devoted to professional, administrative, or executive tasks.
- The employee must regularly or customarily exercise independent judgment and discretion at work.
- The employee must be paid a salary that is equivalent to 2X the state’s minimum full-time employment wage and/or an annual salary of at least $58,240 for employers employing fewer than 26 employees.
#2 Registered Nurses
Most registered nurses are categorized as non-exempt, which means they are protected under the state’s overtime rules. However, registered nurses that primarily engage in administrative or executive roles and meet the requirements for white-collar exemption listed above would be considered exempt.
#3 Computer Professionals
A computer professionals exemption will apply to those working in systems analysis, development, or design when all of these statements about the employee are true:
- They are mostly involved with creative and intellectual work that requires independent judgment or discretion.
- They are proficient and highly skilled in software engineering, programming, and systems analysis.
- They earn $50 an hour or more, or a yearly salary of $104,149.81 or more, paid monthly. These figures adjust with inflation.
#4 Doctors and Surgeons
Surgeons and physicians engaged in duties requiring a medical license are exempt from overtime laws. The employee must earn $90.07 an hour or a yearly salary equivalent to qualify. These figures adjust with inflation. The exemption doesn’t apply to interns, residents, or any doctor covered by a collective bargaining agreement.
#5 Teachers in Private Schools
For a teacher to be exempt, they must work in a private school and meet the following requirements:
- They are tasked with imparting knowledge to students
- They regularly exercise independent judgment or discretion
- They hold a bachelor’s degree or higher, or valid credentials for teaching
- They earn 100% of the lowest salary that is offered to credentialed teachers by any California district and 70% of the lowest salary that is offered by the district serving the county or city where their private school is located.
#6 Employees of the Government or the University of California
Overtime laws don’t apply to local or state government employees or University of California employees.
#7 Outside Salespersons
For an individual to be exempt from overtime as an outside salesperson, they must meet the following conditions:
- They are 18 years of age or older.
- At least 50% of their working hours are spent away from the employer’s place of business.
- They sell facility usage, items, services, or contracts.
#8 Employees That Earn Commissions
Overtime rules do not apply to commission earners who meet the following requirements:
- They earn a salary that is more than 1.5X the state’s minimum wage.
- More than one-half of the employee’s pay comes from commission.
Filing a claim for unpaid overtime
California law entitles an employee to collect any overtime that an employer owes and potentially receive additional compensation as a penalty against the employer for violating the law. Failure to pay unpaid overtime exposes employers to liability and lawsuits.
If you feel that you have not been adequately compensated for overtime work that you have performed, consult with an experienced California unpaid overtime lawyer. Labor law attorneys will protect your rights as a California employee, and hold your employer liable for their negligence. By hiring an employment lawyer, you can get the compensation you are rightfully owed.
Contact an Expert Unpaid Overtime Lawyer in Orange County
If you or someone you know believes that your employer has failed to overtime wages, it is best to immediately consult with an experienced attorney. The Orange County unpaid wage lawyers at the Law Offices of Samer Habbas & Associates can help you fight for your rights and recover the full damages that you deserve. We specialize in handling a wide variety of employment law cases.
The Law Offices of Samer Habbas is dedicated to helping individuals with their all overtime/unpaid wage claims. With multiple offices located in Irvine, Anaheim, Los Angeles, El Segundo, Riverside and San Diego, our employment lawyers represent victims of overtime violations across Southern California. For more information or to schedule a free consultation with an experienced Orange County unpaid overtime attorney, please call 949-727-9300.
