What Business Owners Don’t Know About Overtime Laws Can Hurt Them

Entrepreneurs may be oblivious to how long their work day is, but they can’t be as dismissive of their workers’ hours. Here are four important laws regarding overtime in California that every business owner – and their managers – should know.

1. Any work performed by an employee in excess of 40 hours in one week is considered overtime and must be paid at 1.5 times the worker’s regular rate of pay. There are exemptions to this law, such as salaried employees, but the laws are complex in this area and business owners should consult with a knowledgeable attorney before assuming an employee is exempt.

2. The California Labor Code states that employees who work more than eight hours in a workday must be paid 1.5 times their regular rate of pay for that extra time. Employers may think that a worker can clock out early if he or she worked extra time the day before, but California law requires the worker still be paid for the overtime on the single day.

3. An employer must pay an employee twice the worker’s regular rate of pay for all work performed in excess of 12 hours in a single day.

4. Employees must be given a minimum of one day off in seven or paid overtime for the entire day of work if it is the seventh day in a row. Section 510 of the California Labor Code states that an employee who works a seventh straight day must be paid 1.5 times the regular rate of pay for the first eight hours of work and two times the worker’s regular rate of pay for any work in excess of eight hours on a seventh straight day.

Small business owners risk losing their entire company if they fail to comply with wage and hour laws. Familiarizing yourself with the answers to the most frequently asked questions about California labor laws can save a lot of headaches.

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