As a California employer, you need to take great care to abide by all the employment laws set out. The state is one of the friendliest toward employees, and this means you, as an employer, may have to do things that other states would not require of you.
Overtime is one area where it is easy to make mistakes if you do not have up-to-date information. Here is a brief summary of the most important overtime rules you need to know:
Overtime is paid at a higher rate
You cannot just give someone extra pay at their standard rate for working extra hours.
Two overtime rates could apply. The first is time and a half. The second is double time.
Time and a half: You must pay this for “all hours worked in excess of eight hours up to and including 12 hours in any workday. “ You must also pay it for “the first eight hours worked on the seventh consecutive day of work in a workweek.”
Double time: You must pay this for, “all hours worked in excess of 12 hours in any workday.” You must also pay double for “all hours worked in excess of eight on the seventh consecutive day of work in a workweek.”
If you offer someone time off in lieu instead of paying them overtime you must do so at either time and a half or double time, as per the rule above.
If you are at all unsure about employment laws, it is better to seek legal guidance to help you comply, as the consequences of not complying can be significant.