If you’re an employee in California who often works beyond normal hours, you deserve to be paid fairly for your time.
California has some of the strongest labor laws in the U.S., and overtime pay rules are designed to protect workers from underpayment.
Understanding how to calculate overtime pay not only ensures that you receive your full wages but also helps you recognize if your employer is following the law.
What Is Overtime Pay?
Overtime pay is the extra compensation you earn when you work more than your standard hours in a single day or week.
In California, this is regulated under Labor Code Section 510, which mandates higher pay rates once employees exceed certain hour limits. These laws apply to most full-time hourly employees, though some salaried and exempt roles may differ.
Overtime Rules in California (2025)
California’s overtime rules are more generous than federal laws. Here’s the breakdown:
- Daily Overtime: You must be paid 1.5 times your regular pay rate for all hours worked over 8 hours in a single day.
- Weekly Overtime: You must be paid 1.5 times your regular rate for all hours worked beyond 40 hours in a single workweek.
- Double Time: If you work more than 12 hours in one day, or over 8 hours on the seventh consecutive day in a week, you’re entitled to 2 times your regular pay rate.
These rules ensure that employees who work long hours are compensated fairly for their extra effort.
How to Calculate Overtime Pay in California
The formula for calculating overtime pay is simple:
Overtime Pay = Overtime Hours × (Regular Hourly Rate × Overtime Rate Multiplier)
Let’s break it down step by step with examples.
Step 1: Find Your Regular Hourly Rate
If you earn a salary or a flat weekly amount, divide your total earnings by the number of hours you typically work. For instance, if you earn $1,200 weekly and work 40 hours, your regular hourly rate is $30.
Step 2: Determine Overtime Hours
Count the hours you worked over 8 hours in a day or over 40 hours in a week. Example: You worked 50 hours this week. That means you have 10 overtime hours.
Step 3: Apply the Overtime Multiplier
For regular overtime, multiply by 1.5.
10 overtime hours × ($30 × 1.5) = $450 overtime pay.
Your total pay for that week would be $1,200 (regular) + $450 (overtime) = $1,650.
If you worked double-time hours (say, over 12 hours in a day), the multiplier becomes 2.0 instead of 1.5.
Overtime for Different Work Schedules
California recognizes alternative workweek schedules where employees may work 10-hour shifts without overtime if the schedule is approved by at least two-thirds of affected employees. However, once you exceed that limit, standard overtime rules apply again.
Common Mistakes Employers Make
Some employers misclassify workers as “exempt” to avoid paying overtime. Others calculate overtime incorrectly by excluding bonuses or commissions from the regular pay rate. California law requires that non-discretionary bonuses be included in overtime calculations. Always review your pay stub carefully to ensure accuracy.
How to Verify Your Overtime Pay
Check your employer’s pay calculations against the California Department of Industrial Relations (DIR) official overtime calculator. This ensures that your payment complies with state labor standards.
When Employers Don’t Pay Properly
If your employer refuses to pay overtime, you can file a wage claim with the California Labor Commissioner’s Office. Claims can be submitted online through the DIR website, and in most cases, you can recover unpaid wages plus interest and penalties.
Internal Link Connection
Just as understanding your wages helps in managing income taxes, you can also read our guide on How To Calculate California State Tax Withholding to estimate your take-home pay after taxes.
Overtime and Rest Breaks
Overtime doesn’t cancel your right to rest or meal breaks. Employees must receive a 30-minute unpaid meal break after 5 hours of work and a 10-minute paid rest break every 4 hours. Missing breaks can result in additional pay penalties owed to you.
Can Salaried Employees Get Overtime?
Yes, some salaried employees can still qualify for overtime. To be exempt, your job duties and salary level must meet specific thresholds. As of 2025, employees earning less than $66,560 per year (or $1,280 per week) may still be eligible for overtime, depending on their job classification.