Archives for June 11, 2014

Calculating Overtime Compensation In California

If you are a non-exempt employee working in California, you may be entitled to overtime compensation.  In order to determine whether you are being paid the proper amount of overtime compensation, use a step-by-step approach:

First: Identify those hours that must be paid on an overtime basis.  In California, any work in excess of eight (8) hours in one workday and any work in excess of forty (40) hours in one workweek and hours worked on the seventh day of work consititute work that must be paid on an overtime basis.

Second: Determine your “regular rate” of pay.  When calculating overtime pay in California, your “regular rate” of pay is used, not the normal hourly amount.  Generally speaking, “regular rate” is a term used to mean your normal hourly amount plus other types of compensation you may recieve (e.g., bonuses).

Third: Determine the applicable overtime rate of pay.  Any work in excess of eight (8) hours in one workday and any work in excess of forty (40) hours in one workweek and the first eight (8) hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the “regular rate” of pay.  Any work in excess of eight (8) hours on any seventh day of a workweek shall be compensated at the rate of no less than twice the “regular rate” of pay of an employee.  In addition, any work in excess of twelve (12) hours in one day shall be compensated at the rate of no less than twice the “regular rate” of pay for an employee.

Your employer should be providing you with properly itemized wage statements every pay period that you can use to cross-check with your time records.  Then use the step-by-step approach above to determine whether you are being paid the proper amount of overtime compensation.

If you feel you have been improperly denied overtime compensation, contact the attorneys at Haeggquist & Eck LLP.

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