Tips for calculating overtime pay in California
Employers in any state might occasionally face challenges when it comes to compliance with the Fair Labor Standards Act (FLSA), however, these issues can become exacerbated if they have operations in California or work solely out of the Golden State. California has some of the strictest labor laws in the United States as a way to discourage employers from exploiting vulnerable workers and encourage them to hire additional staff members rather than overload just a few.
As such, individuals are owed time-and-a-half pay if they work more than eight hours in a single day or more than 40 hours in a week. Employers are also required to pay overtime rates if workers are scheduled for more than six consecutive days and double-time for employee attendance exceeding 12 hours in a single day, or more than eight hours on the seventh straight day of work.
These calculations can become even more complicated when employers consider that they must base these figures on employees total earnings. If workers are only issued an hourly rate, this may be a simple calculation. If they receive bonuses, commission or tips on top of their regular rate this can become a bigger challenge.
California Employer Daily explains that businesses must include the following forms of compensation when calculating overtime rates: shift differentials, production bonuses, the fair value of provided meal, lodging and other forms on non-cash compensation, commission and piece rate pay.
As such, individuals are owed time-and-a-half pay if they work more than eight hours in a single day or more than 40 hours in a week. Employers are also required to pay overtime rates if workers are scheduled for more than six consecutive days and double-time for employee attendance exceeding 12 hours in a single day, or more than eight hours on the seventh straight day of work.
These calculations can become even more complicated when employers consider that they must base these figures on employees total earnings. If workers are only issued an hourly rate, this may be a simple calculation. If they receive bonuses, commission or tips on top of their regular rate this can become a bigger challenge.
California Employer Daily explains that businesses must include the following forms of compensation when calculating overtime rates: shift differentials, production bonuses, the fair value of provided meal, lodging and other forms on non-cash compensation, commission and piece rate pay.
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