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 triggers, the regular rate, and the rules that catch contractors most often.

Reviewed 9 min read Software, not legal advice
The short answer

Under Labor Code §510, California pays 1.5× the regular rate for hours past 8 in a workday and past 40 in a workweek, and 2× for hours past 12 in a workday. On the seventh consecutive day of a workweek, the first 8 hours pay 1.5× and every hour after pays 2×.

Overtime is calculated on the regular rate, not the base wage. It folds in nondiscretionary pay such as production bonuses, attendance bonuses, shift differentials and piece rates, and California computes flat-sum bonuses differently from federal law: divided by non-overtime hours, not total hours (Alvarado v. Dart Container, 2018). Each hour is paid once, at its single highest applicable rate. Overtime is owed even when nobody authorized it; the remedy for unapproved overtime is discipline, not non-payment.

When does overtime start in California?

Under Labor Code §510, independent triggers each fire overtime for nonexempt workers, and any one of them is enough. Wage Order 16 (on-site construction) repeats the same tiers in its Section 3(A)(1).

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 underpays, and the unpaid wages also feed waiting-time and wage-statement exposure. See the gap for your own schedule

What does a 13-hour day pay?

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 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 began 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. The $160 difference is entirely California-specific, and $64 of it isn't overtime but meal premiums that a long day makes almost inevitable. The example counts all 13 clock hours as worked; an unpaid 30-minute meal would leave 12.5 hours and move half an hour out of the double-time tier. On a 5:00 AM start the first meal deadline is 10:00 AM, which feels absurdly early to a crew and is 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.

What is the regular rate of pay, and why isn't it 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. The California Supreme Court held in Ferra v. Loews Hollywood Hotel (2021) that meal and rest premiums are paid on the same regular rate of compensation. 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 worked. That smaller divisor gives a higher regular rate than the federal method, on purpose: $100 over 40 non-overtime hours adds $2.50 an hour, where dividing by 45 total hours adds $2.22.
  • Production bonuses ride every overtime hour. A crew bonus program that ignores its own effect on overtime rates recreates the violation it was meant to reward around. The overtime calculator leaves bonuses out, so real figures run higher.

Can the same hour be counted twice?

No. Hours already paid as daily overtime don't count again toward the 40-hour weekly trigger, and Wage Order 16 §3(D) says nothing requires combining more than one overtime rate for a single hour. The discipline that matters more is the inverse: each hour must be paid at the highest single rate it qualifies for. Getting this right means computing the day-by-day and week-level math together, per worker, per workweek — exactly the arithmetic that breaks spreadsheets at crew scale.

Is unauthorized overtime still owed?

Yes. 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”: timestamped clock data showing when work actually started and ended turns that from a jury question into a record.

Can a crew work four 10-hour days without overtime?

Crews love four 10-hour days. In construction, Wage Order 16 §3(B) allows up to 10 hours a day within a 40-hour week without daily overtime only under an Alternative Workweek Schedule (AWS) adopted by the book:

  • a written proposal from the employer, voted on in a secret ballot held before the work is performed, passing by two-thirds of the affected employees in the work unit;
  • a written disclosure and a noticed meeting at least 14 days before the vote (in a second language, too, if 5 percent or more of the unit primarily speak it);
  • the results reported to the DIR Office of the Director–Research within 30 days after they are final, and posted at the job site.

Even with a valid AWS, hours past the scheduled day and past 40 in the week pay 1.5×, and hours past 12 in a day, or past 8 on a day outside the schedule, pay 2×. An AWS of more than 8 hours a day can't be used on a public-works contract in violation of Labor Code §§1810–1815. 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.

Do construction crews follow different overtime rules?

Mostly the same ones, with two details worth knowing. Wage Order 16 defines a workday as any consecutive 24-hour period beginning at the same time each calendar day and a workweek as a fixed, regularly recurring 168 hours, so the week your payroll uses has to be one fixed week. And Labor Code §514 sets aside the daily-overtime rules of §§510–511 for employees covered by a valid collective bargaining agreement that expressly covers wages, hours and working conditions, pays premium rates for all overtime hours, and sets a regular hourly rate of at least 30 percent above the state minimum wage (about $21.97 an hour at the 2026 minimum of $16.90). Union-covered crews should read the agreement, not just this guide.

Who is exempt from California overtime in 2026?

Exempt or not?

Executive, administrative and professional exemptions require exempt duties more than half the time and a fixed salary of at least twice the state minimum wage for full-time work. With the minimum wage at $16.90 on January 1, 2026, that floor is $70,304 a year ($1,352 a week), up from $68,640 in 2025. 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 does compliant overtime look like at crew scale?

  • Minute-level records with device timestamps — daily overtime 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.

CDO computes the daily, weekly and seventh-day tiers on every punch as it lands and pre-fills payroll for a person to approve. Meal-break rules are the other half — read that guide

Disclaimer

CDO provides software, not legal advice. This guide summarizes California law as of October 2026 for general information; wage orders, statutes 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 — overtime is paid on the regular rate, which includes nondiscretionary bonuses, piece rate and commissions. Flat-sum bonuses are divided by non-overtime hours only (Alvarado v. Dart Container), which gives a higher rate than the federal method.

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: a written proposal, a secret-ballot vote of two-thirds of the work unit before the work is performed, and results reported to the DIR within 30 days. An informal 4×10 owes 2 hours of overtime per day.

Who is exempt from California overtime in 2026?

Executive, administrative and professional roles with mostly exempt duties and a salary of at least twice the state minimum wage: $70,304 a year with the 2026 minimum of $16.90. Titles don't matter; working foremen and hourly leads are essentially never exempt.

Do union construction crews get daily overtime?

Not if a valid collective bargaining agreement sets premium rates for all overtime hours and a regular rate at least 30 percent above the state minimum wage (Labor Code §514). Otherwise §510 applies, so read the agreement.

See daily overtime computed as the day happens.

CDO runs the §510 tiers on every punch — daily, weekly, 7th-day and double time — and pre-fills payroll for a person to approve, with the record already written.