California overtime laws are stricter than the federal rule because they count the day as well as the week. Under Labor Code section 510, a nonexempt employee gets one and a half times the regular rate for work over 8 hours in a workday or 40 hours in a workweek, and for the first 8 hours on the seventh consecutive day of work. Double time applies after 12 hours in a day and after 8 hours on that seventh day.
If you employ people in California, or you work there, this is the rule that catches most out-of-state owners. Federal law only looks at the week. California looks at every single day too, so a four-day week of 10-hour shifts creates overtime even though the weekly total is exactly 40. I've built this guide from the Labor Commissioner's own FAQ and the Labor Code sections it points to, so you can check each rule at the source.
The three California overtime triggers
The Labor Commissioner's Office sums up the general rule like this: a nonexempt employee aged 18 or over can't be employed more than eight hours in a workday or more than 40 hours in a workweek unless they get one and a half times their regular rate for the extra hours. The same applies to 16 and 17 year olds who aren't required to attend school and aren't otherwise barred from the work.
| When the hours are worked | Rate owed |
|---|---|
| Over 8 hours and up to 12 hours in a workday | One and a half times the regular rate |
| Over 40 hours in a workweek | One and a half times the regular rate |
| First 8 hours on the seventh consecutive day of work in a workweek | One and a half times the regular rate |
| Over 12 hours in a workday | Double the regular rate |
| Over 8 hours on the seventh consecutive day of work in a workweek | Double the regular rate |
Section 510 adds a useful line for payroll: nothing in it requires an employer to combine more than one overtime rate for the same hour. So an hour that's both over 8 in the day and over 40 in the week is paid at time and a half once, not twice.
How the regular rate is worked out
Overtime is a multiple of the regular rate of pay, and that's where most payroll mistakes start. The Labor Commissioner says the regular rate includes hourly earnings, salary, piecework and commissions, and it can never be less than the minimum wage. As of October 2026, the DLSE lists the state minimum wage as $16.90 an hour from January 1, 2026, unless a higher industry or local rate applies.
For a salaried nonexempt employee, the FAQ gives a three-step method: multiply the monthly pay by 12 to get the annual salary, divide by 52 to get the weekly salary, then divide by the legal maximum regular hours of 40. Section 515 says the same thing in shorter form, that the regular hourly rate of a nonexempt full-time salaried employee is 1/40th of the weekly salary.
- Nondiscretionary bonuses count. A bonus paid for hours worked, production, proficiency or staying with the company goes into the regular rate.
- Discretionary bonuses don't. A holiday gift or a reward for good service that isn't tied to hours or output stays out.
- Some payments are excluded, including expense reimbursements and pay for days when no work is done, such as vacation, holiday or illness.
- Two different hourly rates in one week means a weighted average: total earnings for the week divided by total hours worked.
The seventh day rule, explained with a week
The seventh-day rule only bites when someone works all seven days of the employer's workweek. Picture a cook who works Monday to Sunday without a day off. Sunday is the seventh consecutive day, so the first 8 hours that day are paid at time and a half and anything past 8 is double time, whatever the weekly total.
The Labor Commissioner also notes that an employer can't discipline an employee for refusing to work on the seventh day of a workweek, and faces a penalty for causing or inducing an employee to give up a day of rest. That's a different stance from ordinary overtime, which an employer can generally require.
Unauthorized overtime still has to be paid
This one surprises small business owners. The DLSE says California law requires overtime to be paid whether or not it was authorized, because employees must be paid for hours they're suffered or permitted to work. An employer can discipline someone for breaking a no-overtime policy, but it can't refuse to pay for the hours.
Two related rules from the same FAQ are worth knowing:
- Overtime can't be waived. Under Labor Code section 1194, an agreement to work for less doesn't stop an employee recovering the overtime owed.
- Overtime pay can run one cycle behind. It must be paid no later than the payday for the next regular payroll period after it was earned, while straight-time wages follow the normal payday rules.
Paid time that isn't worked doesn't count toward overtime either. The FAQ's example is a worker who's out sick on Friday and paid for 48 hours that week: they only worked 40, so no overtime is due. The general federal picture sits in the overtime laws guide, which also covers other countries.
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Who is exempt from California overtime
An exemption means the overtime rules don't apply to that kind of employee. The biggest group is executive, administrative and professional staff. Section 515 lets the Industrial Welfare Commission exempt them only if three things are true: they're primarily engaged in exempt duties, they customarily and regularly exercise discretion and independent judgment, and they earn a monthly salary of no less than two times the state minimum wage for full-time employment. Full-time means 40 hours a week.
So a job title isn't enough. A store manager paid a salary below that floor, or one who spends most of the day on the till, isn't exempt. The DLSE's exemptions table lists other groups too, including:
- outside salespersons
- the parent, spouse or child of the employer
- drivers whose hours are set by federal or California hours-of-service rules
- employees under a qualifying collective bargaining agreement that pays a regular hourly rate of not less than 30% more than the state minimum wage
- commissioned employees under Orders 4 and 7 who earn more than one and a half times the minimum wage, with more than half their pay from commissions
Alternative workweek schedules
Section 511 is the one route to regular 10-hour days without daily overtime. Employees can adopt a regularly scheduled alternative workweek of no more than 10 hours a day within a 40-hour week, but only if the employer proposes it and at least two-thirds of the affected employees in a readily identifiable work unit approve it in a secret ballot election.
- Hours beyond the agreed schedule, and beyond 40 in the week, are still paid at time and a half.
- Hours over 12 in a day are double time.
- The employer can't cut anyone's regular hourly rate because the schedule is adopted or repealed.
- The election results must be reported to the Division of Labor Standards Enforcement within 30 days after they're final.
My take for small employers: if your team wants four 10-hour days, run the election by the book and keep the paperwork. Without it, every one of those days carries 2 hours of overtime. And when someone leaves, the timing rules in the final paycheck guide apply to any overtime still owed.
Frequently asked questions
Does California pay overtime after 8 hours?
Yes. Under Labor Code section 510, nonexempt employees get one and a half times their regular rate for work over 8 hours in a workday and double time for work over 12 hours, as well as overtime after 40 hours in a week.
What is the seventh day rule in California?
If an employee works seven consecutive days in a workweek, the first 8 hours on the seventh day are paid at time and a half and any hours over 8 that day are paid at double time.
Can a California employee waive overtime?
No. The Labor Commissioner says an agreement to work for a lower wage doesn't stop the employee recovering the overtime owed under Labor Code section 1194.
Do salaried employees get overtime in California?
It depends. A salaried employee is owed overtime unless they meet an exemption test, such as the executive, administrative or professional test, which includes a salary of at least two times the state minimum wage for full-time work.
Does unauthorized overtime have to be paid in California?
Yes. The employer must pay for hours an employee is suffered or permitted to work, even if the overtime wasn't approved. The employer can still discipline the employee for breaking its policy.
