California Overtime Laws for Salaried Employees [2024 Updated]

California workers have many rights, such as the right to work in a safe environment and be paid at least the minimum wage. One common area where workers may unlawfully lose compensation is overtime.

Unless an employee is exempt, they have the right to be paid at a higher rate for any hours they put in that qualify as overtime. Employers should understand the California overtime laws for salaried employees to avoid legal issues.

Do Salaried Employees Receive Overtime?

In California, any nonexempt employee 18 or older should be paid overtime if they work more than 40 hours in a workweek or more than eight hours in any workday. The rate of overtime pay in California is 1.5 times the regular pay rate for an employee. Overtime increases to twice the rate of pay for work performed in excess of 12 hours within a workday.

There are a fair number of exemptions, however. Exempt positions cannot claim overtime in California. These positions include:

• Highly paid executive and administrative employees
• Certain hourly software field employees
• Outside salespersons
• The employer’s spouse, children, or parents
• Drivers regulated by Title 13 of the California Code of Regulations
• Certain workers covered by a valid collective bargaining agreement
• Professional actors

These and other exempt positions cannot claim overtime. However, anyone who has experienced a wage violation can file a complaint with the California Division of Labor Standards Enforcement (DLSE), so employers should take these laws seriously.

Common Examples of Wage Violations Every Employer Should Know

Violations of salaried worker overtime can take many forms. Some are more common than others. One example would be a situation where a nonexempt salaried worker is told that they have to show up 30 minutes early to complete a work-related task. They then work a full eight hours afterward but are not paid for the time they put in before the typical start of their day.

If you ask an employee to come into work or attend a work-related function on the weekend, that should be added to their weekly hours. The line between work and activities that are not work-related may not be clear. A general rule is that any duties you require employees to fulfill should be considered part of the workweek.

This can include time spent on weekends, evenings, or any additional hours outside their regular schedule. Keep accurate records of your employees’ hours worked to ensure that they receive proper compensation.

It’s important to ensure your salaried workers are paid correctly as well. In some cases, salaried workers’ hours may not be accurately reflected on their timesheets.

Tips for Reducing the Risk of Committing Labor Law Violations

Every business should properly train its employees, supervisors, managers, and HR team in overtime laws. Your HR department should have a policy in place for addressing questions about overtime. In addition, workers should be clearly informed if they are exempt or nonexempt when it comes to overtime. These steps can mitigate the risk that your business is accused of not paying its employees properly.

You can hire a labor law attorney to review your employee contracts and HR policies to ensure that they are in compliance with state and federal laws. Many businesses find themselves in legal trouble because they do not adequately train their employees on the basics of the state’s overtime laws. Proper training can prevent misunderstandings from becoming costly legal problems.

If you are notified that your employee has retained legal counsel, it is important to find legal representation for your business. It is not advisable to negotiate with an attorney yourself. Your attorney can exhaust all avenues to protect you and your business.

California Overtime Law FAQs

Q: Are Salaried Employees Entitled to Overtime in California?

A: Many salaried employees are entitled to overtime in California. Only exempt workers can claim overtime in California. This narrow classification includes high-level executives, professional actors, and close family members of employers, among other exempt workers. Nonexempt workers must be paid overtime for any work beyond eight hours in a workday or 40 hours within a standard workweek.

Q: How Many Hours Can a Salaried Employee Work?

A: There are no specific limits on how many hours an employee can work, although there are laws governing how workers are paid based on the number of hours they work. A standard workday is considered eight hours. Anyone who works beyond that time must be compensated at one-and-a-half times that regular pay rate. The only exception would be for exempt workers who cannot claim overtime.

Q: What Is the Overtime Law for Salaried Employees in California in 2024?

A: The overtime law in California classifies workers as either exempt from overtime or nonexempt. Salaried, nonexempt employees must be paid overtime. Any employee who is nonexempt and denied overtime pay can hire an employment law attorney to represent them during the administrative claim process or in court. California’s wage and labor laws form the basis for claims of labor law violations.

Q: Can My Employee’s Overtime Wages Be Waived?

A: Your employee’s overtime wages cannot be waived. Certain employers may try to ask workers to voluntarily waive their right to overtime pay, or they may try to get salaried workers to sign a document waiving overtime rights. These attempts to circumvent California’s labor laws do not remove a salaried employee’s right to overtime.

Schedule Your Employment Law Consultation Today

California employers should understand their responsibilities. Employers cannot deny overtime pay to salaried, nonexempt employees. If an employer withholds overtime pay, costly legal issues may result. Even if you’ve kept a careful account of your employees’ compensation, legal claims are possible. In this case, it’s vital to hire a talented attorney.

Without legal representation, your business could experience an unfavorable outcome to any legal action initiated by your employees. Don’t put off protecting your business. Schedule your consultation with the law firm of Peterson Watts Law Group, LLP. We have successfully defended many businesses against employment law claims and are prepared to do the same for you.