Compensatory Regulations for Extended Work Hours in the Golden State

Eligibility for Premium Pay

Most adult employees in non-exempt positions are entitled to premium compensation for exceeding standard work durations. Specific exemptions apply based on occupation, industry, and duties performed.

Standard Workday and Workweek Definitions

A standard workday is defined as eight hours in a 24-hour period, and a standard workweek is defined as 40 hours in a seven-day period. Exceeding either of these durations triggers premium compensation requirements.

Premium Pay Rates

For hours worked beyond eight in a workday or 40 in a workweek, the premium rate is one and one-half times the employee's regular rate of pay (1.5x). Double the regular rate of pay (2x) is mandated for hours worked beyond twelve in a workday.

Seventh Day of Work Premium

Working more than eight hours on the seventh consecutive day of work in a workweek also mandates double time compensation (2x). The first eight hours worked on the seventh consecutive day are compensated at one and one-half times (1.5x) the regular rate of pay.

Exemptions and Exclusions

Certain categories of employees are exempt from these compensatory regulations, including but not limited to: executive, administrative, and professional employees meeting specific salary and duty requirements; outside salespeople; certain computer software employees; and employees covered by valid collective bargaining agreements with specific provisions. Further, there are highly compensated employee criteria that may impact exemption status. Each exemption is dependent on detailed requirements regarding salary level, job duties, and decision-making authority.

Calculation of Regular Rate of Pay

The regular rate of pay includes all remuneration for employment paid to, or on behalf of, the employee. This includes hourly wages, salary, commissions, and certain bonuses. Exclusions apply to specific types of payments, such as discretionary bonuses and reimbursements for business expenses. Accurate calculation of the regular rate is essential for correctly computing premium pay.

Recordkeeping Requirements

Employers are mandated to maintain accurate records of hours worked, wages paid, and other relevant information for each employee. These records must be readily accessible and retained for a specified period to comply with legal obligations and facilitate compliance audits.

Meal and Rest Break Compliance

These compensatory regulations interact with requirements for providing meal and rest breaks. Failure to provide mandated breaks can result in additional penalties and compensatory obligations for the employer.