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California employment law

Overtime

What does “overtime” mean?

Overtime is the premium pay owed to non-exempt employees for hours beyond the daily or weekly thresholds, calculated on the regular rate of pay rather than the base hourly wage.

California is a daily-overtime state, which distinguishes it from federal law and from most others. Obligations can arise from a long single day even in a short week.

Overtime cannot be waived by agreement, and an employer's rule prohibiting unauthorised overtime does not remove the obligation to pay for hours actually worked. It supports discipline, not non-payment.

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