As an employer in California, you are required to pay your non-exempt employees overtime pay for any hours worked over 8 in a day, as well as any hours worked over 40 in a workweek at a rate of one and one-half times their regular rate of pay. This requirement is established by California Labor Code, Section 510, which provides that overtime is calculated based on the time that an employee spends working, even if it is outside of their regular scheduled hours.
In addition to the daily and weekly overtime requirements, California also has a "double-time" rule for any hours worked in excess of 12 hours in one day, and for any hours worked over eight hours on the seventh consecutive day of work in a workweek.
Employers must keep accurate records of all hours worked by non-exempt employees, including start and end times for each shift, and break periods. Employers are also required to provide wage statements with every paycheck, which must include the hours worked, pay rate, and overtime calculations.
There are some exemptions to the overtime pay requirements, such as for certain executive, administrative, and professional employees, as well as some computer professionals and outside sales employees. However, these exemptions have specific requirements that must be met, and the burden is on the employer to prove that the employee qualifies for the exemption.
If you are unsure about your specific obligations as an employer in California regarding overtime pay, it is recommended that you consult with a licensed attorney or contact the California Division of Labor Standards Enforcement for further guidance. Additionally, if you are found to be in violation of these requirements, you may be subject to fines and penalties, as well as civil lawsuits brought by your employees.
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