Compliance guide · California

California overtime is daily — and that's the trap.

Federal law counts overtime by the week. California counts it by the day: time-and-a-half after 8 hours in a single workday, double time after 12, and special rates on the seventh consecutive day (Labor Code §510). Payroll systems tuned for the other 49 states quietly underpay every long day — this guide covers the three triggers, the regular rate, and the rules that catch contractors most often.

Updated Jul 21, 2026 8 min read Software, not legal advice
The short answer

California overtime is owed on the day as well as the week. Under Labor Code §510, a non-exempt employee earns 1.5× the regular rate for hours past 8 in a workday, 2× for hours past 12 in a workday, and 1.5× for hours past 40 straight-time hours in a workweek. On the seventh consecutive day of a single workweek, the first 8 hours are at 1.5× and everything after that is at 2×. Hours are never counted twice — each hour is paid at its single highest applicable rate.

Overtime is calculated on the regular rate, not the base hourly wage. The regular rate folds in nondiscretionary pay — production bonuses, attendance bonuses, shift differentials, piece rates — and California computes flat-sum bonuses differently from federal law: divided by non-overtime hours worked rather than total hours (Alvarado v. Dart Container, 2018). Overtime is owed even when it was never authorized; the remedy for unapproved overtime is discipline, not non-payment.

When does overtime start in California?

Under Labor Code §510, three independent triggers each fire overtime for nonexempt workers — and any one of them is enough:

TriggerRateFederal (FLSA)?
More than 8 hours in a workday1.5× regular rateNo — daily OT doesn't exist federally
More than 12 hours in a workday2× regular rateNo
More than 40 hours in a workweek1.5× regular rateYes — the only federal trigger
7th consecutive day — first 8 hours1.5× regular rateNo
7th consecutive day — beyond 8 hours2× regular rateNo

The practical consequence: a crew that works four 10-hour days totals 40 hours and owes zero federal overtime — but 8 hours of California overtime, two per day. Any payroll process that only watches the weekly total is underpaying, and under Naranjo-era stacking, quietly building waiting-time and wage-statement exposure on top. See the gap for your own schedule →

Anatomy of a 13-hour day

Rules stated as thresholds are easy to nod along to and hard to price. Here is a single storm-response day — one worker, 5:00 AM to 6:00 PM, at a $32 regular rate — with every hour placed in its correct tier.

Hours 1–8 · 5:00 AM – 1:00 PMstraight time at 1× — 8 hrs × $32$256.00
Hours 9–12 · 1:00 PM – 5:00 PMovertime at 1.5× — 4 hrs × $48$192.00
Hour 13 · 5:00 PM – 6:00 PMdouble time at 2× — 1 hr × $64$64.00
Meal premium, if lunch slipped past 10:00 AMthe fifth hour ended at 10:00 on a 5:00 AM start — §226.7, one hour at the regular rate$32.00
Second meal premium, if none was taken before hour 10a 13-hour day requires a second meal beginning before 3:00 PM$32.00
One worker, one day$576.00
The same day paid on federal rules would be $416 — 13 hours at straight time, since the week hadn't yet passed 40 and federal law has no daily trigger at all. The $160 difference is entirely California-specific, and $64 of it isn't overtime but meal premiums that a long day makes almost inevitable. Note the trap in the fourth row: on a 5:00 AM start the meal deadline is 10:00 AM, which feels absurdly early to a crew and is exactly why early-start trades generate so many premiums.

When is double time owed?

Two situations: hours beyond 12 in a single workday, and hours beyond 8 on the seventh consecutive workday of a workweek. A 14-hour emergency dry-in after a storm pays 8 regular hours + 4 at 1.5× + 2 at 2×. There is no "we agreed to straight time" exception — overtime rights can't be waived by agreement.

The "regular rate" is not the hourly wage

Every overtime hour is paid on the regular rate of pay — which folds in nondiscretionary bonuses, production and piece-rate earnings, and commissions. Two field-crew specifics:

  • Flat-sum bonuses are worse than they look. Under Alvarado v. Dart Container (2018), a flat bonus (a $100 attendance bonus, a per-job completion bonus) is divided by only the non-overtime hours to compute the rate — a higher divisor-math than the federal method, on purpose.
  • Production bonuses ride every OT hour. A crew bonus program that ignores its own effect on overtime rates re-creates the violation it was meant to reward around. (CDO's bounty engine runs this true-up per workweek automatically.)

No pyramiding — but no shortcuts either

Hours already paid as daily overtime don't count again toward the 40-hour weekly trigger — California doesn't require paying twice for the same hour. But the inverse discipline matters more: each hour must be paid at the highest single rate it qualifies for. Getting this right requires computing the day-by-day and week-level math together, per worker, per workweek — exactly the arithmetic that breaks spreadsheets at crew scale.

Unauthorized overtime is still owed

If the employer knew or should have known the work happened, the overtime is payable — even when it violated a written policy. You may discipline for unauthorized overtime; you may never dock it. The load-bearing phrase is "should have known": GPS-timestamped clock data showing when work actually started and ended is what turns that from a jury question into a record.

The 4×10 schedule — legal only with the paperwork

Crews love four 10-hour days. California allows it without daily overtime only under a formal Alternative Workweek Schedule (AWS): proposed in writing, adopted by a two-thirds secret-ballot vote of the affected work unit, and registered with the DIR before it takes effect. An informal handshake 4×10 owes two hours of overtime every day it runs — one of the most common self-inflicted wounds in construction, because everyone involved thinks they agreed to it.

Exempt or not?

Overtime exemptions (executive / administrative / professional) require exempt duties most of the time and a fixed salary of at least twice the state minimum wage for full-time work. Titles don't matter. A foreman who swings a hammer half the day is nonexempt no matter what the org chart says — and misclassification claims stack the same penalty layers as break violations.

What compliant looks like at crew scale

  • Minute-level records with device timestamps — daily OT math is only as good as the punches under it, and rounding is indefensible near meals (Donohue).
  • Daily + weekly + 7th-day math computed together, per worker, per workweek, with bonuses folded into the rate.
  • Long days flagged while they're happening — the cheapest 12-hour day is the one the office saw at hour 10.
  • Drive time counted where Morillion requires it — a yard-to-site hour can be the hour that crosses 8.

This is the math CDO runs on every punch as it lands: daily/weekly/7th-day overtime, double time, bonus true-ups per workweek, meal-break premiums — pre-filled into payroll for human approval, with the immutable record behind it. Meal-break rules are the other half — read that guide →

Disclaimer

CDO provides software, not legal advice. This guide summarizes California law as of July 2026 for general information; wage orders and case law change, and collective-bargaining agreements can alter these rules. For decisions about your workforce, consult qualified employment counsel.

Questions

Overtime law, quick answers.

When does overtime start in California?

Three independent triggers: more than 8 hours in a day (1.5×), more than 40 in a week (1.5×), and any work on the 7th consecutive day (1.5× for the first 8 hours). Federal law only has the weekly one.

When is double time required?

Beyond 12 hours in a day, and beyond 8 hours on the 7th consecutive day. A 14-hour day = 8 regular + 4 at 1.5× + 2 at 2×.

Does a bonus change the overtime rate?

Yes — OT is paid on the regular rate, which includes nondiscretionary bonuses, piece rate, and commissions. Flat-sum bonuses use California's harsher divisor (Alvarado v. Dart Container).

Is unauthorized overtime still payable?

Yes — if you knew or should have known the work happened. Discipline is allowed; docking pay never is.

Can we run 4×10s without overtime?

Only with a formal Alternative Workweek Schedule: written proposal, two-thirds secret-ballot vote, registered with the DIR. An informal 4×10 owes 2 hours of OT per day.

Who is exempt?

Executive/administrative/professional roles with mostly exempt duties and a salary of at least 2× the state minimum wage. Titles don't matter — working foremen and hourly leads are essentially never exempt.

See daily overtime computed as the day happens.

CDO runs the §510 math on every punch — daily, weekly, 7th-day, double time, bonus true-ups — and pre-fills payroll with the record already written.