Getting Around California Labor Law Overtime

Sacramento, CAAlthough new overtime regulations went into effect for the state of California in 2000, some employers continue to violate the California Labor Law by not paying their employees overtime after working 8 hours in a work day. "My company furloughed all its employees rather than lay some of us off," says Robert, an electrician. "On our furlough week we only work three days a week and 10 hour days; I believe my employer is violating the California labor code."

Robert's normal shift is 8 hours per day, Monday to Friday and he is paid an hourly rate. No one in the company wanted to be furloughed but everyone wanted to keep their jobs. However, Robert believes they are getting ripped off and being taken advantage of. "Our manager said they only have to pay us overtime after 40 hours in a week but it's my understanding that California overtime is paid after 8 hours in one day."

According to the California Department of Industrial Relations, eight hours of labor constitutes a day's work, and employment beyond eight hours in any workday or more than six days in any workweek is permissible provided the employee is compensated for the overtime at not less than:

1. One and one-half times the employee's regular rate of pay for all hours worked in excess of eight hours up to and including 12 hours in any workday, and for the first eight hours worked on the seventh consecutive day of work in a workweek; and
2. Double the employee's regular rate of pay for all hours worked in excess of 12 hours in any workday and for all hours worked in excess of eight on the seventh consecutive day of work in a workweek.

However, there is an exception to the 8-hour workday rule. If employers implement an "alternative workweek schedule" such as a furlough, and such a schedule receives approval of two/thirds of their workforce, this allows employees to work four day shifts of up to 10 hours without receiving overtime, so long as the total hours don't go over 40 hours.

"I work 24/7 on an emergency crew maintaining traffic signals and lighting along highways," says Robert. "We can't just quit work after 8 hours if there's an emergency call. But we figure on these furlough weeks we are losing 15 percent of our wages and now they tell us there may be an additional furlough day in January, which would mean a 20 percent pay cut, unless we can get overtime."

In California, employers failing to observe overtime regulations can be assessed penalties by the California Division of Labor Standards Enforcement in the amount of $50 per unpaid worker for each pay period the worker wasn't paid correctly. A complaint by a single employee can trigger a full review of an employer's records, potentially resulting in penalties if any employee pay calculations are out of compliance.