Overtime Pay

Effective 12/1/16, new federal overtime rules will affect the minimum salary threshold that employees must meet before they can be classified as exempt from overtime. You can find information in Determining Exempt or Nonexempt Employee Status. As the compliance date nears, the HR Library will be updated with additional information.

This provides a detailed explanation of the rules and exceptions for paying overtime in California. California laws favor employees more than federal rules and exceptions. ​

  • Understanding Basic Overtime Requirements

    Understanding Basic Overtime RequirementsFor almost all nonexempt private sector California employees who are not covered by collective bargaining agreements, overtime pay is based primarily on the number of hours worked in a day.  More »

    ​​Read about a new 2015 court case and a new 2015 agency action.
  • Defining Workdays and Workweeks

    Defining Workdays and WorkweeksIt is important to define your workday and workweek. These definitions impact your obligations to pay your employees overtime.   More »

  • Calculating Overtime

    Calculating OvertimeThe trickiest part of payroll administration is calculating overtime.  More »

    ​Read ab​out a new 2016 court case.
  • Overtime Examples

    Overtime ExamplesCalculating daily and weekly overtime can be confusing, especially with the many changes to California's overtime laws.  More »

  • Requiring Mandatory Overtime

    Requiring Mandatory OvertimeUsually, employees cannot refuse your request that they work overtime. There are not any general laws or regulations that govern mandatory overtime. However, there are limitations under certain Wage Orders and union contracts.   More »

  • Using Makeup Time

    Using Makeup TimeUpon an employee's request, you can allow makeup time under certain conditions.  More »

  • Compensatory Time Off

    Compensatory Time OffA private employer in California is not permitted to offer compensatory time off (CTO) to nonexempt employees in lieu of paying overtime, unless the employer is one of the rare few exempt from the FLSA.  More »

  • Overtime Exceptions for Specific Industries

    Overtime Exceptions for Specific IndustriesThe IWC Wage Orders for specific industries contain some exceptions to the general rules for calculating overtime and premium pay.  More »

    Read about 2014 legislation. ​​​