California Guide · Updated 2026
California Overtime Rules: Daily, Weekly & Double Time
California overtime is more generous to employees than federal law — most importantly, it is calculated on a daily basis, not just weekly. Employers who think only in terms of the 40-hour federal week routinely underpay without realizing it.
The basic rules (Labor Code §510)
For most non-exempt employees, overtime is owed:
- 1.5× the regular rate after 8 hours in a workday, and after 40 hours in a workweek;
- 2× (double time) after 12 hours in a workday;
- On the seventh consecutive day of a workweek: 1.5× for the first 8 hours and 2× for anything beyond 8.
The “regular rate” is not just base pay
Overtime is calculated on the regular rate of pay, which generally includes most nondiscretionary bonuses, commissions, and shift differentials — not just the base hourly wage. Leaving these out is a common way employers undercount what is owed.
Who is exempt
Properly classified exemptemployees are not owed overtime — but exemption requires meeting both the salary-basis test (at least twice the state minimum wage for full-time work) and the duties test. Calling someone “salaried” does not make them exempt; misclassification is its own large liability.
Common mistakes
- Averaging hours across days, or only counting the weekly total, and missing daily overtime;
- Paying a flat “salary” to non-exempt staff and assuming no overtime is due;
- Letting employees work off the clock (pre-shift, post-shift, or through breaks);
- Offering “comp time” in lieu of overtime, which private employers generally cannot do.
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