What Is Overtime Pay Under California Law?

What Is Overtime?

Under California law, overtime pay applies in two general situations:

1. When an employee works more than 8 hours in a single day, or

2. When an employee works more than 40 hours in a single workweek.

For example, if an employee named Mr. Hong works 8 hours per day from Monday through Friday, he will have worked a total of 40 hours in the week. However, if his employer asks him to work an additional 8 hours on Saturday due to increased workload, his total hours become 48 for the week.
In that case:

• The first 40 hours are compensated at his regular rate of pay

• The additional 8 hours are considered overtime and must be paid at the overtime rate

As of July 2022, the minimum wage in California is $15.00 per hour.

How Is Overtime Pay Calculated?

Continuing the example above, if Mr. Hong’s regular hourly wage is $15, then his overtime rate must be 1.5 times the regular rate, which equals:

$15 × 1.5 = $22.50 per hour (for overtime hours)

What If I Am Paid a Salary Instead of Hourly?

One of the most frequently asked questions I receive as a labor attorney is:

“My employer pays me a salary and tells me that salaried employees are not entitled to overtime. Is that true?”

Not necessarily.
Under California labor law, unless you are classified as an exempt employee, you are entitled to overtime pay regardless of whether you are paid hourly or salary.

Who Qualifies as an Exempt Employee?

Under California law, the following categories typically qualify as exempt employees:

• Executive-level roles (e.g., CEO, CFO, Board Members)

• Managers who supervise other employees and have authority over hiring and termination

• Certain licensed professionals (e.g., doctors, lawyers, pharmacists, accountants)

• Teachers in elementary, middle, or high schools

• Outside salespersons who regularly work outside the employer’s place of business

Exempt employees are not entitled to overtime pay, but there are strict criteria, especially regarding minimum salary thresholds, that must be met to qualify as exempt.

Minimum Salary Requirement for Exempt Employees

To legally classify an employee as exempt, the employee must earn at least twice the state minimum wage for full-time employment.

Let’s take Mr. Hong again as an example.
If he works as a café manager supervising 6 employees, he may appear to fit the managerial exemption.
However, to be legally exempt, his salary must be at least two times the minimum wage.

As of July 2022, the California minimum wage is $15/hour. Therefore:

• $15 × 2 = $30/hour

• $30 × 40 hours/week = $1,200/week

• $1,200/week × 52 weeks/year = $62,400/year

This means Mr. Hong would need to earn at least $62,400 annually to meet the minimum salary threshold for exemption.
If he is paid less than that, even if he supervises staff and is paid on salary, his employer would be in violation of labor law, and Mr. Hong may be entitled to unpaid overtime wages.

What If I Am an Undocumented Worker or International Student?

Another common concern is:

“I’m undocumented or on a student visa, so I probably don’t qualify for compensation, right?”

You are absolutely entitled to compensation.
Regardless of your immigration status or visa category, if your employer violates California labor law, you are still 100% entitled to claim unpaid wages.
California law is particularly protective of vulnerable workers, including immigrants and undocumented individuals.

How Much Does It Cost to Hire a Labor Attorney?

Labor law cases are typically handled on a contingency fee basis, which means:

• You pay no attorney’s fees unless we recover compensation for you

• All court costs and litigation expenses are fully covered by our office upfront

This column is intended to provide general information regarding basic labor law principles and does not constitute formal legal advice. If you believe your rights under labor law have been violated, you are strongly encouraged to consult with a qualified labor and employment attorney to evaluate your case and pursue compensation.