California vs. Federal Overtime Laws: Crucial Information for Employees

California employees who work extra hours are entitled to overtime pay under both federal and state law. However, California’s overtime laws offer greater protections for employees than federal law. Understanding the difference between California and federal overtime laws can help you ensure you are receiving the wages you have earned and know when an employer may be violating your rights. 

Understanding Federal Overtime Laws

The Fair Labor Standards Act (FLSA) sets overtime standards at the federal level. Under this Act, employees must be paid overtime for all hours worked over 40 a week, at 1.5 times their usual pay rate. However, the FLSA only applies to non-exempt employees. Exempt employees, such as executives, administrative workers, or salaried professionals who meet certain salary and duties tests, are not eligible for overtime under federal law.

Another key point under the FLSA is that overtime is not required after a particular number of hours per day. For example, under federal law, if you work 44 hours a week, you are eligible for four hours of overtime pay, irrespective of how the hours were spread throughout the workweek.

Understanding California Overtime Laws

California Labor Code Section 510 sets the overtime standards at the state level. California sets stricter and more favorable standards than federal law. State law requires non-exempt employees to receive overtime in the following situations;

• Daily Overtime: Workers who work more than eight hours a day must be paid 1.5 times their usual rate for all extra hours.
• Weekly Overtime: Employees must receive 1.5 times their regular pay rate for hours worked over 40 in a workweek.
• Seventh Consecutive Day Overtime: Employees who work seven days straight in a workweek must be paid 1.5 times their regular rate for the initial eight hours worked on day seven. 
• Double Time: If you work for more than 12 hours in a workday, you must be compensated at a rate no less than twice your regular pay rate. You are also entitled to double time if you work more than eight hours on any seventh day of a workweek.

Differences Between Federal and State Overtime Laws

Under California law, employees can earn daily overtime even if they do not work more than 40 hours in a workweek. This is not possible under federal law, which only allows overtime when a worker exceeds 40 hours a week. Secondly, while California law offers double-time in some circumstances, federal law does not require double-time in any circumstance.

Real Case Example

Consider an employee who works the following hours;

• Monday: 7 hours
• Tuesday: 9 hours
• Wednesday: 7 hours
• Thursday: 8 hours
• Friday: 8 hours

Total hours worked: 39 hours. 

Under federal law, this worker would not be eligible for overtime since the total hours are not more than 40. However, under California law, they would be entitled to one hour of overtime pay on Tuesday, even though the total hours for the week are less than 40.

Which Law Applies?

In California, state law (which is more favorable) overrides the FLSA on overtime matters since it offers stronger protections.

Contact a California Employment Lawyer

Contact a California employment lawyer if you have questions or believe an employer has violated the law.