512. CA Labor Code § 1194 (2017) (a) Notwithstanding any agreement to work for a lesser wage, any employee receiving less than the legal minimum wage or the legal overtime compensation applicable to the employee is entitled to recover in a civil action the unpaid balance of the full amount of this minimum wage or overtime compensation, including interest thereon, reasonable attorney’s fees, … (a) An employer shall not employ an employee for a work period of more than five hours per day without providing the employee with a meal period of not less than 30 minutes, except that if the total work period per day of the employee is no more than six hours, the meal period may be waived by mutual consent of both the employer and employee. How is the regular rate of pay calculated? Example: Ian works at an insurance company as a salaried, non-exempt employee. Overtime is paid at 1 ½ times to 2 times the employee’s regular pay. A small miscalculation could result in a smaller paycheck. According to California labor laws, non-exempt employees who are not part of an alternative workweek schedule earn overtime if they work more than: Under California law, overtime pay is usually 1.5 times the regular pay. When it is not calculated correctly, the employee may not be receiving the correct overtime pay rate.1, The regular rate of pay may also be used as the basis for calculating California paid sick leave.2 And it may include more than the employee’s hourly salary. (2014) 59 Cal.4th 1. California Code of Regulations. For more detailed codes research information, including annotations and citations, please visit Westlaw . This generally means they must pay their employees no less frequently than two times per calendar month. Below, our California employment law attorneys discuss the following frequently asked questions about how the regular pay rate affects overtime pay for California employees: Under state law, employees generally must be paid twice a month at least. Section 554 Any work in excess of 12 hours in one day shall be compensated … We recommend using When an employee is employed on a piece-rate basis, the regular hourly … pay is computed by adding together total earnings for the workweek from piece rates and all other sources (such as production bonuses) and any sums paid for waiting time or other hours worked (except statutory exclusions). California Codes > Labor Code > Division 2 > Part 2 > Chapter 1 > § 510 California Labor Code 510 – (a) Eight hours of labor constitutes a day’s work. Labor Code Sections 510 and 512 The federal Fair Labor Standards Act (“FLSA”) and its wage and hour provisions apply to both private and public employers. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs. California Labor Code Section 512 CA Labor Code § 512 (2017) (a) An employer may not employ an employee for a work period of more than five hours per day without providing the employee with a meal period of not less than 30 minutes, except that if the total work period per day of the employee is no more than six hours, the meal period may be waived by mutual consent of both the … . Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee. Under California Labor Code sections 226.7 and 512 employers must offer workers meal and rest breaks. Labor Code section 246 LC — Payment of Wages; Paid Sick Days. Such employees shall not be employed more than eight (8) hours in any workday or more than 40 hours in any workweek unless the employee receives one and one-half (1 ½) times such employee's regular rate of pay for all hours worked over 40 hours in the workweek. Division of Labor Standards Enforcement History of Rate of Pay for Exemption for Computer Software Employee (California Labor Code Section 515.5(a)(4)) Labor Code Section 515.5 provides that certain computer software employees shall be exempt from the requirement that an overtime rate of compensation be paid pursuant to Labor Code Section 510 California Labor Code section 510 provides: 510. Eight hours of labor constitutes a day’s work. Elena ends up working for 11 hours on that day. In most cases, the maximum regular hours is 8 hours per workday and 40 hours per workweek. Overtime is based on the “regular rate of pay.” Employers who miscalculate the regular rate of pay may owe employees back pay plus interest. It is not an arbitrary label chosen by the parties; it is an actual fact. If an employer approves a written request of an employee to make up work time that is or would be lost as a result of a personal obligation of the employee, the hours of that makeup work time, if performed in the same workweek in which the work time was lost, may not be counted towards computing the total number of hours worked in a day for purposes of the overtime requirements specified in Section 510 … In addition, any work in excess of eight hours on any seventh day of a workweek shall be compensated at the rate of no less than twice the regular rate of pay of an employee. (3) An alternative workweek schedule to which this chapter is inapplicable pursuant to 29 U.S. Code § 213 – Exemptions. California employers must also run payroll according to certain pay periods. California Labor Code Section 510 requires employers to pay at least one and one-half times the normal rate for time worked: over 8 hours in a single day, over 40 hours in a week, and. However, there are a number of payments that are generally excluded from determining the “regular rate.” This includes: In no case can regular wages be lower than the applicable minimum wage. Cal. California Labor Code Section 510 requires employers to pay at least one and one-half times the normal rate for time worked: over 8 hours in a single day, over 40 hours in a week, and the first 8 hours worked on the seventh consecutive day of the work week. Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee. They also cannot discourage employees from taking one. However, the FLSA requires employers to compensate employees only for overtime in excess of 40 hours per workweek. Section 510. 2011 California Code Labor Code DIVISION 2. The California Labor Code provides multiple ways for workers to earn overtime. Specifically, the 9th Circuit examined a 2014 California Appellate Court case wherein employees argued that because their CBA’s definition of “overtime” was less generous than the provisions of Labor Code Section 510, the employer had to pay overtime in accordance with the Labor Code (Vranish v. Exxon Mobil Corp). Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee. Once the parties have decided upon the amount of wages and the mode of payment the determination of the regular rate becomes a matter of mathematical computation, the result of which is unaffected by any designation of a contrary ‘regular rate’ in the contracts.”), 29 USC § 207 (“(e) “Regular Rate” Defined. Copyright © 2020, Thomson Reuters. 29 C.F.R. Shouse Law Group has wonderful customer service. Refer to California Labor Code Sections 1285 to 1312 and 1390 to 1399 for additional restrictions on the employment of minors and for descriptions of criminal and civil penalties for violation of the child labor laws. California Labor Code Section 510 requires employers to pay at least one and one-half times the normal rate for time worked: over 8 hours in a single day, over 40 hours in a week, and; the first 8 hours worked on the seventh consecutive day of the work week. 1242, 1245. California pay law is more strict than federal law. Overtime is based on the “regular rate of pay.” Employers who miscalculate the regular rate of pay may owe employees back pay plus interest. This sum is then divided by the number of hours worked in the week for which such compensation was paid, to yield the pieceworker’s “regular rate” for that week. This site has been upgraded to assure you a positive Thomson Reuters Westlaw experience. See same. Division of Labor Standards Enforcement History of Rate of Pay for Exemption for Computer Software Employee (California Labor Code Section 515.5(a)(4)) Labor Code Section 515.5 provides that certain computer software employees shall be exempt from the requirement that an overtime rate of compensation be paid pursuant to Labor Code Section 510 Any work in excess of 12 hours in one day shall be compensated at the rate of no less than twice the regular rate of pay for an employee. The California Labor Board accepts claims from employees in labor disputes over wage laws, overtime or any other alleged violations of labor standards set forth by the state of California. (a) Eight hours of labor constitutes a day’s work. CA Labor Code § 516 (2017) (a) Except as provided in Section 512, the Industrial Welfare Commission may adopt or amend working condition orders with respect to break periods, meal periods, and days of rest for any workers in California consistent with the health and welfare of those workers. What payments are included in the regular rate of pay? Overtime for the extra 3 hours of work will be calculated at one and one-half (1 ½) times Elena’s regular pay of $20 per hour. 541.502. Notwithstanding subdivision (c) of Section 500, the menu of work schedule options may include a regular schedule of eight-hour days that are compensated in accordance with subdivision (a) of Section 510. Copyright © 2020 Shouse Law Group, A.P.C. Any work in … As used in this section the “regular rate” at which an employee is employed shall be deemed to include all remuneration for employment paid to, or on behalf of, the employee, but shall not be deemed to include—(1) sums paid as gifts; payments in the nature of gifts made at Christmas time or on other special occasions, as a reward for service, the amounts of which are not measured by or dependent on hours worked, production, or efficiency; (2) payments made for occasional periods when no work is performed due to vacation, holiday, illness, failure of the employer to provide sufficient work, or other similar cause; reasonable payments for traveling expenses, or other expenses, incurred by an employee in the furtherance of his employer’s interests and properly reimbursable by the employer; and other similar payments to an employee which are not made as compensation for his hours of employment; (3) sums paid in recognition of services performed during a given period if either, (a) both the fact that payment is to be made and the amount of the payment are determined at the sole discretion of the employer at or near the end of the period and not pursuant to any prior contract, agreement, or promise causing the employee to expect such payments regularly; or (b) the payments are made pursuant to a bona fide profit-sharing plan or trust or bona fide thrift or savings plan, meeting the requirements of the Administrator set forth in appropriate regulations which he shall issue, having due regard among other relevant factors, to the extent to which the amounts paid to the employee are determined without regard to hours of work, production, or efficiency; or (c) the payments are talent fees (as such talent fees are defined and delimited by regulations of the Administrator) paid to performers, including announcers, on radio and television programs; (4) contributions irrevocably made by an employer to a trustee or third person pursuant to a bona fide plan for providing old-age, retirement, life, accident, or health insurance or similar benefits for employees; (5) extra compensation provided by a premium rate paid for certain hours worked by the employee in any day of workweek because such hours are hours worked in excess of eight in a day or in excess of the maximum workweek applicable to such employee under subsection (a) or in excess of the employee’s normal working hours or regular working hours, as the case may be; (6) extra compensation provided by a premium rate paid for work by the employee on Saturdays, Sundays, holidays, or regular days of rest, or on the sixth or seventh day of the workweek, where such premium rate is not less than one and one-half times the rate established in good faith for like work performed in nonovertime hours on other days; (7) extra compensation provided by a premium rate paid to the employee, in pursuance of an applicable employment contract or collective-bargaining agreement, for work outside of the hours established in good faith by the contract or agreement as the basic, normal, or regular workday (not exceeding eight hours) or workweek (not exceeding the maximum workweek applicable to such employee under subsection (a), where such premium rate is not less than one and one-half times the rate established in good faith by the contract or agreement for like work performed during such workday or workweek; or (8) any value or income derived from employer-provided grants or rights provided pursuant to a stock option, stock appreciation right, or bona fide employee stock purchase program which is not otherwise excludable under any of paragraphs (1) through (7) if—(A) grants are made pursuant to a program, the terms and conditions of which are communicated to participating employees either at the beginning of the employee’s participation in the program or at the time of the grant; (B) in the case of stock options and stock appreciation rights, the grant or right cannot be exercisable for a period of at least 6 months after the time of grant (except that grants or rights may become exercisable because of an employee’s death, disability, retirement, or a change in corporate ownership, or other circumstances permitted by regulation), and the exercise price is at least 85 percent of the fair market value of the stock at the time of grant; (C) exercise of any grant or right is voluntary; and (D) any determinations regarding the award of, and the amount of, employer-provided grants or rights that are based on performance are—(i) made based upon meeting previously established performance criteria (which may include hours of work, efficiency, or productivity) of any business unit consisting of at least 10 employees or of a facility, except that, any determinations may be based on length of service or minimum schedule of hours or days of work; or (ii) made based upon the past performance (which may include any criteria) of one or more employees in a given period so long as the determination is in the sole discretion of the employer and not pursuant to any prior contract.”), Labor Code 1197 LC — Payment of lower wage than minimum wage. 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