California Overtime Rules
California law requires employers to pay employees overtime, unless otherwise exempt, when they work more than eight hours in a workday or work a seventh consecutive day in a workweek. An employer is required to pay:
- One and one-half times (1.5x) the employee's regular rate of pay for all hours worked in excess of 8 hours up to and including 12 hours in any workday, and for the first 8 hours worked on the 7th consecutive day of work in a workweek; and
- Double (2.0x) the employee's regular rate of pay for all hours worked in excess of 12 hours in any workday and for all hours worked in excess of 8 on the 7th consecutive day of work in a workweek.
Additional information on overtime in California can be found here.
California Minimum Wage
Employees in Justworks who are not exempt from minimum wage laws may not be paid at a rate below the minimum hourly wage based on the company size and jurisdiction. Information on the current minimum wage in California can be found here.
Some localities in California have higher minimum wages than those at the state level. In those scenarios, the law that favors the employee should be followed. Minimum wages in these localities are always changing, and this list is always growing. The very best way to ensure compliance with all applicable laws is to consult with legal counsel.
- San Francisco
- Los Angeles
- San Diego
- El Cerrito
- Los Altos
- Los Angeles County (unincorporated areas)
- Mountain View
- Palo Alto
- San Jose
- San Leandro
- San Mateo
- Santa Clara
- Santa Monica
California Exempt Salary Threshold
Exempt employees in California are required to be paid a minimum salary of at least the state exempt salary threshold in order to maintain their exempt status. The exempt salary threshold in California is tied to minimum wage, and reflects a salary of two times the minimum wage, assuming a 40-hour workweek.
For example, if the applicable state minimum wage is $12.00 per hour, an exempt employee must be paid at least $960 per week ( $12 x 2= $24 x 40 hours), or $49,920 annually.
A note: California employees considered exempt under the computer-software-related professional exemption have separate minimum wage and salary thresholds. These rates are updated by the California Department of Industrial Relations (DIR) every January 1.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.