![]() In these cases, you can use either of the following methods to calculate the regular rate of pay to determine the overtime rate:(i) You can use the piece or commission rate as the regular rate, and pay the worker 1.5 times this rate for production during the first four overtime hours in a workday ( time and a half pay), and twice the rate for all hours worked beyond 12 hours in a workday or(ii) Divide the worker's total earnings for the workweek, including earnings during overtime hours, by the total number of hours worked during the workweek (including the overtime hours). ![]() Sometimes, workers are paid by the 'piece' or 'commission'. In such cases, their overtime is determined with a weighted average of those rates. If the worker receives an annual salary instead of hourly pay and is eligible to receive overtime payments, you can determine their hourly rate by dividing their yearly salary by the weeks in a year (52) and then the hours in a 'workweek' (40).Sometimes, a worker performs two or more job duties, for which they receive varying pay rates. How do I calculate overtime?Ĭalifornia overtime is calculated on the basis of a worker's standard hourly rate of pay. Please refer to the California Department of Industrial Relations (DIR) website to understand exactly what these “affected employees” are exempt from. Any person under the age of 18 who is employed as a babysitter for a minor child of the employer in the employer's home.Personal attendants not covered under the Domestic Worker Bill of Rights.Any employee engaged in intellectual, managerial, or creative work that needs discretion and exercise of independent judgment, and for which the remuneration is not less than two times the monthly State minimum wage for full-time employment.An announcer, news editor, or chief engineer employed by a radio or television station in a city or town with a population of 25,000 or less.Employees whose duties are exclusively those of a motion picture projectionist.Crew members of commercial fishing boats.Full-time carnival ride operators employed by a traveling carnival.Airline employees working between 40 and 60 hours during the workweek due to temporary modifications to their schedule at their own request.Employees who have entered into a collective bargaining agreement under the Railway Labor Act.Student nurses in a school accredited by the California Board of Registered Nursing or by the Board of Vocational Nurse and Psychiatric Technician Examiners.Non-minor workers whose earnings exceed one and one-half times the minimum wage and more than half their compensation represents commissions.Employees covered by valid collective bargaining agreements providing for the wages, hours of work, and working conditions (please refer to for details about the agreement).Some drivers whose hours are regulated by the U.S Department of Transportation Code of Federal Regulation or the California Code of Regulations.Participants of national service programs.Any individual who is the parent, spouse, child, or legally adopted child of the employer.Employees directly employed by the State, city, county or special district.Most employees in the computer software field.Executive, Administrative and Professional employees.According to California State’s Department of Industrial Relations, the following categories of employees are exempt from some or all sections of Industrial Welfare Commission Wage Orders: As per the California overtime law, some workers are exempt from overtime pay. In California, all workers are presumed to be nonexempt and the burden lies with the employer to prove otherwise. 1.5 times the hourly rate for the first 8 hours - Two times the hourly rate if they worked over 8 hours What is an exempt employee, and when are employees exempt from overtime laws? If your workers work for seven consecutive days, on the seventh day, you need to pay them:.If your workers work over 12 hours in a workday: you need to pay them two times the hourly rate.If your workers work over 8 hours in a workday and/or 40 hours in a workweek: you need to pay them 1.5 times the hourly rate.Workers on hourly rates, day rates, piece rates, or annual salaries are eligible for overtime in California as long as they are not exempt.If you have nonexempt workers eligible for overtime pay, the California overtime law requires you to pay them 1.5 times their standard rate when they work over 8 hours during a "workday" and/or over 40 hours throughout a "workweek." However, if their work hours exceed 12 hours in any given workday or eight hours on their seventh consecutive workday, the California overtime law requires you to pay them twice their rate of pay.
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