Overtime Pay Litigation

California Overtime Laws: Labor Code, sections 510, 1194 and the Industrial Welfare Commission Wage Orders

California has strong public policies favoring the prompt payment of overtime to employees. There are three main laws that layout California overtime pay: 1) Labor Code, section 510; 2) Labor Code, section 1194; and 3) the Industrial Welfare Commission Wage Orders. Labor Code, section 510 states that an employer must pay one and a half (1.5) the employee’s regular rate of pay for hours worked between eight (8) and twelve (12) in a work day, and double the employee’s regular rate of pay for hours worked over twelve (12) per day. Employers must also pay overtime for hours worked over forty (40) per week. And in some cases, employers must pay special overtime rates where employees work seven (7) straight days.

Labor Code, section 1194 states that it is unlawful to fail to pay an employee overtime, and that in any action to recover unpaid overtime wages, the employee is entitled to wages, attorneys’ fees, litigation costs, and interest.

California Overtime Exempt v. Non-Exempt Status

California provides narrow loopholes to the overtime pay requirement and they are constantly misinterpreted and misunderstood. For example, a classic myth is that one who is paid a salary is not entitled to overtime. This is incorrect! Many individuals who are paid a salary are entitled to overtime.

To be “exempt” from overtime, one must qualify for one of the exemptions below. As mentioned earlier, these exemptions are narrow. This means that if any one of the factors is not met, the person is not exempt and is entitled to overtime. The three major exemptions are:

• The Executive/Managerial Overtime Exemption:
• The Administrative Overtime Exemption;
• The Professional Overtime Exemption

Aside from the three categories above, several other exemptions exist. Unlike the executive, administrative, or professional exemptions, the other overtime exemptions have limited scope and may not exempt the employee from meal period and rest break requirements.

• The Computer Employee Exemption
• Outside Sales Employees
• Inside Sales Employees

 

California Overtime Law versus Federal Overtime Law (Fair Labor Standards Act)

There are significant but often subtle differences between California Overtime Laws and Federal Overtime Laws. For example, California Overtime laws require employers to pay employees overtime where they work over eight (8) hours in a workday; Federal Overtime law does not. But the most striking difference may relate to the differences between what qualifies an employee as exempt from overtime. With a few exceptions, California Overtime Law provides greater protection to employees than Federal Law. Thus, it is possible for an employee to be exempt from overtime under Federal Law, while also non-exempt under California Overtime Law. In such situations, California Law governs and the employee is entitled to overtime pay.

California’s Department of Labor Standards Enforcements’ Position on Overtime

The DLSE’s position is to enforce California’s Overtime Laws and favor employees. 

Political Efforts to Change Overtime Laws

There have been some efforts to change California law to match the FLSA in terms of daily hours worked. Business interests favor a change that removes overtime for hours worked over eight (8) per day, as codified in Labor Code, section 510.

What to Do If You Feel You Have Wrongfully Been Denied Overtime Pay

Contact us. We will take a detailed look at the issues you face. We have substantial experience litigating California Overtime laws against businesses large and small. Call toll free at (855) 384-3627.