🇺🇸 California Overtime Laws — 2026 UPDATE

Overtime Laws in California 2026: Pay Rates, Exemptions & Tax Deduction (2026)

⚠️Informational only — not legal or tax advice.

This guide explains California’s overtime laws 2026

Last verified: February 25, 2026

Next scheduled review: May 25, 2026

overtime in california 2026

Table of Contents

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California Overtime Laws at a Glance (2026)

Details
Overtime threshold 8 hours/workday AND 40 hours/workweek AND 7th consecutive workday
Overtime pay rate 1.5× regular rate of pay
Double time Yes: after 12 hours/workday AND after 8 hours on the 7th consecutive workday
7th consecutive day rule Yes: 1.5× for first 8 hours; 2× for hours beyond 8
State minimum wage (2026) $16.90/hour (statewide general rate)
Exempt salary threshold (2026) $1,352.00/week ($70,304/year) — 2× state minimum wage
Daily overtime Yes — after 8 hours/workday (1.5×) and after 12 hours/workday (2×)
State enforcement agency California Labor Commissioner's Office (Division of Labor Standards Enforcement — DLSE)
Federal enforcement U.S. DOL Wage and Hour Division
Overtime tax deduction (federal) Up to $12,500/year (2025–2028) — FLSA-covered workers only
Statute of limitations 3 years (state, California Labor Code § 1194) / 2 years FLSA (3 if willful)

Governing law: California Labor Code § 510; Industrial Welfare Commission Wage Orders; Fair Labor Standards Act, 29 U.S.C. § 207 Official state source: California Department of Industrial Relations — Overtime Last verified: February 25, 2026

Does California Have Its Own Overtime Law?

California has its own overtime law under California Labor Code § 510, which provides substantially broader protections than the federal Fair Labor Standards Act (FLSA).

When California law and federal FLSA rules differ, the standard that is more favorable to the employee applies. In virtually every area of overtime law, California law is more protective than the FLSA.

Key differences between California and federal overtime law:

  • Daily overtime: California requires overtime after 8 hours in a workday — not just after 40 hours in a workweek. Working a single 10-hour shift triggers 2 hours of overtime under California law, even if the employee works no other hours that week. The FLSA has no daily overtime requirement.
  • Double time: California requires double-time pay (2×) after 12 hours in a single workday, and after 8 hours on the 7th consecutive workday in a workweek. The FLSA does not require double time at any threshold.
  • 7th consecutive day rule: California requires overtime for all hours on a 7th consecutive workday, with double time kicking in after 8 hours that day. The FLSA has no equivalent rule.
  • Exempt salary threshold: California’s exempt salary threshold ($1,352/week / $70,304/year) is nearly double the federal FLSA threshold ($684/week / $35,568/year). Employees in California earning between those two figures are exempt under federal law but still entitled to overtime under California law.
  • Anti-pyramiding rule: California prohibits “pyramiding” of overtime — an employer cannot add daily overtime hours together with weekly overtime hours to create a higher overtime obligation than actually exists. Each daily overtime calculation stands independently.
  • Agricultural workers: California has extended full overtime protections to agricultural workers (phased in since 2019, fully applicable since 2022 for large employers and 2025 for small employers). The FLSA largely exempts agricultural workers from overtime.

Key California overtime statutes:

Federal statute: Fair Labor Standards Act, 29 U.S.C. § 207 — dol.gov/agencies/whd/overtime

Note on Wage Orders: California’s 17 Industrial Welfare Commission (IWC) Wage Orders cover specific industries and occupations and may establish additional or different overtime rules for workers in those sectors. The Wage Orders are enforceable alongside the Labor Code and must be consulted for employees in industries such as agriculture (Wage Order 14), healthcare (Wage Order 5), transportation (Wage Order 9), and others.

How Overtime Pay Is Calculated in California

California’s overtime calculation system is the most complex in the United States. Unlike the FLSA, which only counts weekly hours, California triggers overtime based on daily hours, weekly hours, and the 7th consecutive workday — each independently.

What Is a “Workweek” in California?

Under California law and the FLSA, a workweek is a fixed, regularly recurring period of 168 consecutive hours (seven consecutive 24-hour periods). An employer may designate any day and time as the start of the workweek, but that designation must be consistent and cannot be changed to avoid overtime obligations.

Each workweek stands alone. An employer cannot average hours across two or more workweeks to avoid overtime. If an employee works 50 hours in one week and 30 the next, overtime is owed for the first week regardless of the second.

What is a “workday” in California? Under IWC Wage Orders, a workday is any consecutive 24-hour period starting at the same time each day. The employer establishes the workday start time — it does not have to coincide with when an employee starts work.

Source: California Labor Code § 500; 29 C.F.R. § 778.104–778.105

California Overtime Pay Rates

Under California Labor Code § 510, nonexempt employees earn overtime at these rates:

Time-and-a-half (1.5× regular rate):

  • All hours worked over 8 in a workday (up to and including 12 hours)
  • All hours worked over 40 in a workweek (weekly overtime — for hours not already counted as daily overtime)
  • The first 8 hours on the 7th consecutive workday in a workweek

Double time (2× regular rate):

  • All hours worked over 12 in a single workday
  • All hours worked over 8 on the 7th consecutive workday in a workweek

Anti-pyramiding rule: California does not allow employers to “pyramid” overtime. Daily overtime hours are counted first. Only the remaining regular hours (hours 1–8 in a workday) count toward the weekly 40-hour threshold. If an employee works four 12-hour days, they have accumulated 16 daily overtime hours — but because only 32 of those 48 weekly hours are “regular” (non-overtime) hours, the weekly 40-hour threshold is not reached, and no additional weekly overtime is owed.

Source: California Labor Code § 510(a); California DIR — AB 60 Update and Overtime Guidance

What Counts as the “Regular Rate of Pay”

The regular rate of pay in California follows the same federal framework under 29 C.F.R. § 778.108, but California courts have consistently applied it broadly. The regular rate includes:

  • Base hourly rate or salary equivalent
  • Non-discretionary bonuses and incentive pay
  • Shift differentials
  • Commissions
  • Piece-rate earnings
  • Most production bonuses

The regular rate does NOT include:

  • Discretionary bonuses (e.g., holiday gifts decided after the work period)
  • Employer contributions to benefit plans
  • Vacation, holiday, or sick pay when no work is performed
  • Overtime premium payments themselves

Source: 29 C.F.R. § 778.108–778.122; California Labor Code § 510

Calculation Examples (Using California’s 2026 Minimum Wage: $16.90/hour)

California’s statewide minimum wage as of January 1, 2026 is $16.90/hour. The overtime rates derived from this base are:

Rate Hourly amount
Regular rate $16.90
Time-and-a-half (1.5×) $25.35
Double time (2×) $33.80

For the current California minimum wage, including sector-specific rates for fast food and healthcare workers, see the California Minimum Wage page.

Example 1 — Standard daily overtime (10-hour workday):

An employee earns $16.90/hour and works a 10-hour shift on a single day:

  • Regular pay: 8 hours × $16.90 = $135.20
  • Overtime pay (1.5×): 2 hours × $25.35 = $50.70
  • Total gross pay for the day: $185.90

Example 2 — Double time (14-hour workday):

An employee earns $16.90/hour and works a 14-hour shift:

  • Regular pay: 8 hours × $16.90 = $135.20
  • Time-and-a-half (hours 9–12): 4 hours × $25.35 = $101.40
  • Double time (hours 13–14): 2 hours × $33.80 = $67.60
  • Total gross pay for the day: $304.20

Example 3 — Weekly overtime only (standard 5-day workweek, no daily OT):

An employee earns $16.90/hour and works exactly 8 hours per day for 5 days, plus 5 hours on a 6th day (Saturday):

  • Regular hours: 40 hours × $16.90 = $676.00
  • Weekly overtime (hours 41–45 on the 6th day): 5 hours × $25.35 = $126.75
  • Total weekly gross pay: $802.75

(Note: Because no single workday exceeds 8 hours, no daily overtime is triggered. Weekly overtime applies after 40 total weekly hours.)

Example 4 — 7th consecutive workday:

An employee earns $16.90/hour and works an 8-hour day Sunday through the following Saturday (7 consecutive days), with all days at exactly 8 hours:

  • Days 1–6 (48 hours worked): No daily overtime — each day is exactly 8 hours.
    • Hours 1–40: Regular pay = 40 × $16.90 = $676.00
    • Hours 41–48 (6th and partial): These are weekly overtime hours (1.5×) = 8 × $25.35 = $202.80
  • 7th consecutive day (8 hours): All hours paid at time-and-a-half (1.5×)
    • 8 hours × $25.35 = $202.80
  • Total weekly gross pay: $1,081.60

Example 5 — 7th consecutive workday with extended hours (double time):

An employee earns $16.90/hour and works 10 hours on the 7th consecutive workday:

  • First 8 hours on the 7th day: 8 hours × $25.35 (1.5×) = $202.80
  • Hours 9–10 on the 7th day: 2 hours × $33.80 (2×) = $67.60
  • Subtotal for the 7th day: $270.40

Alternative Workweek Schedules (AWS)

California Labor Code § 511 allows employers to adopt an Alternative Workweek Schedule (AWS) through a 2/3 majority vote by secret ballot of affected employees. Under a valid AWS:

  • Employees may work up to 10 hours/day in a 4-day workweek without triggering daily overtime (the first 8 hours/day are regular, but daily overtime between 8–10 hours is waived).
  • Daily overtime at 1.5× still applies for hours over 10 in a workday under the AWS.
  • Double time at 2× still applies for hours over 12 in any workday.
  • Weekly overtime at 1.5× still applies for hours over 40 in a workweek.

An AWS that is not properly adopted, registered with the California Division of Labor Statistics and Research, and maintained in compliance with § 511 is invalid — and all hours over 8 per day revert to standard overtime rules.

Source: California Labor Code § 511; California DIR — Alternative Workweek Schedules

Who Is Exempt from Overtime in California?

Not all employees in California are entitled to overtime pay. Certain employees are classified as “exempt” under California law, federal law, or both. California’s exemption standards are more demanding than the federal FLSA — meaning California more narrowly limits which employees can be classified as exempt.

California’s Three-Part Exemption Test

To qualify as exempt from overtime under California law, an employee must meet all three of the following requirements:

1. Salary basis test: The employee must be paid a predetermined, fixed salary that is not subject to reduction based on the quality or quantity of work performed.

2. Salary level test: The employee must earn a salary of at least twice the California state minimum wage for full-time employment (40 hours/week).

For 2026, with a California minimum wage of $16.90/hour:

$16.90 × 2 × 40 hours/week × 52 weeks = $70,304/year ($1,352.00/week)

3. Duties test: The employee must primarily perform executive, administrative, or professional duties as defined under California law and the applicable IWC Wage Order.

All three tests must be met simultaneously. An employee who earns a high salary but fails the duties test is not exempt. An employee who performs qualifying duties but earns less than $1,352/week is not exempt.

Source: California Labor Code § 515; California DIR — Exemptions from the Overtime Laws

California Exempt Salary Threshold vs. Federal (2026)

Weekly threshold Annual equivalent Basis
California (2026) $1,352.00/week $70,304/year 2× state minimum wage ($16.90/hr)
Federal FLSA $684.00/week $35,568/year 29 C.F.R. § 541
Difference California requires $668 more per week $34,736 more per year

What this means: An employee earning between $684/week and $1,352/week may be exempt from overtime under federal law but remains entitled to California overtime. Since California law is more favorable to the employee, the California standard governs all employees working in California.

Computer software employees: California Labor Code § 515.5 establishes a separate exemption for computer software employees. To qualify as exempt in 2026, a computer software employee must earn at least $58.85/hour, or a monthly salary of at least $10,214.40 ($122,572.80/year). This rate is adjusted annually by the California Department of Industrial Relations.

Source: California Labor Code § 515.5; California DIR

Licensed physicians and surgeons: Under California Labor Code § 515.6, a licensed physician or surgeon employed to provide medical services is exempt from overtime if earning at least $97.99/hour (adjusted annually).

The Duties Tests in California

California applies duties tests that are similar to — but stricter than — the federal FLSA tests. Under California law, the employee must spend more than half of their working time (over 50%) performing the qualifying exempt duties. The federal standard uses a “primary duty” test that does not require a strict time calculation.

Exemption category Key duty requirements (California)
Executive Must spend more than 50% of time managing the enterprise or a recognized department/subdivision; must customarily and regularly direct the work of 2 or more employees; must have authority to hire/fire or recommend such action with particular weight.
Administrative Must spend more than 50% of time on office or non-manual work directly related to management policies or general business operations; must customarily and regularly exercise independent judgment and discretion in matters of significance.
Professional (learned) Must spend more than 50% of time in work requiring advanced knowledge in a field of science or learning, customarily acquired by a prolonged course of specialized intellectual instruction.
Professional (artistic) Must spend more than 50% of time in work that is original and creative in a recognized field of artistic endeavor, and the result depends primarily on the invention, imagination, or talent of the employee.
Outside sales Must spend more than 50% of time away from employer's place of business making sales or obtaining orders.

Source: California Labor Code § 515; IWC Wage Orders 1–16; California DIR — Exemptions FAQ

What Happened to the 2024 Federal DOL Salary Threshold Increase?

In April 2024, the U.S. Department of Labor issued a final rule that would have raised the federal exempt salary threshold to $1,128/week ($58,656/year) effective January 1, 2025.

On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated that rule nationwide in Texas v. U.S. Department of Labor (No. 4:24-cv-00499).

The federal FLSA salary threshold remains $684/week ($35,568/year) as of 2026.

This ruling has no effect on California’s exempt salary threshold, which is set independently under California Labor Code § 515 at twice the state minimum wage — currently $1,352/week ($70,304/year).

States with Higher Exempt Salary Thresholds Than Federal (2026)

State Weekly threshold (2026) Annual equivalent Basis
Washington $1,541.70 $80,168 2× state minimum wage
California $1,352.00 $70,304 2× state minimum wage
New York (NYC) $1,199.10 $62,353 Region-based
Colorado $1,123.08 $58,400 Adjusted annually
Maine ~$796.17 ~$41,401 3,000 hours × minimum wage × 52
Federal FLSA $684.00 $35,568 29 C.F.R. § 541

Source: Respective state DOL websites; California DIR for California figure

Specific Exemptions Under California Law

Beyond the standard white-collar exemptions, California Labor Code and IWC Wage Orders recognize several other specific exemptions. These are not covered by the general three-part test and have their own distinct criteria:

  • California Wage Order — Professional Exemption for Certain Journalists and Creatives: Journalists who primarily gather, prepare, or edit news may qualify for the professional exemption only if they customarily and regularly exercise independent judgment.
  • Private school teachers: Exempt if they earn at least twice the minimum wage, have a baccalaureate or higher degree (or equivalent), and their primary duty is teaching, instructing, or lecturing.
  • Sheepherders: Subject to special Wage Order 14 provisions with a distinct compensation structure (monthly wage), not the standard hourly overtime framework.

Critical rule: California law explicitly states that the exemption from overtime does not apply to registered nurses — regardless of salary. RNs in California are entitled to overtime under the same daily and weekly rules as all other nonexempt employees. Limited exceptions apply only to certified nurse practitioners, certified nurse anesthetists, and certified midwives meeting specific criteria under Labor Code § 515(f).

Source: California Labor Code § 515(f); California DIR

Being Paid a Salary Does Not Equal Exempt Status

A common misclassification error: in California, simply paying an employee a salary — no matter how high — does not automatically make them exempt from overtime. The salary must meet the minimum threshold and the employee must independently satisfy the duties test.

Under California Labor Code § 1194, any agreement by an employee to work for less than the legal overtime rate is void and unenforceable. An employee who has been misclassified as exempt may recover all unpaid overtime, plus interest and attorney’s fees.

Overtime Tax Deduction: "No Tax on Overtime" (2025–2028)

The One Big Beautiful Bill Act (Public Law 119-21), signed on July 4, 2025, created a new federal income tax deduction for qualified overtime compensation under Internal Revenue Code § 225.

This deduction is available for tax years 2025 through 2028.

Who Is Eligible

  • Nonexempt employees covered by the Fair Labor Standards Act (29 U.S.C. § 207)
  • Must have a Social Security number valid for employment
  • Cannot use the Married Filing Separately filing status

Who is NOT eligible:

  • Exempt (salaried) employees who do not receive FLSA-required overtime
  • Independent contractors (1099 workers) who are not FLSA-covered
  • Employees receiving overtime only under California law for hours beyond 8 in a workday — that California-only overtime premium is not FLSA-required and therefore does not qualify for the federal deduction

California-specific note: This is a critical distinction for California workers. California requires overtime for hours over 8 in a workday and for 7th consecutive workday hours. The FLSA only requires overtime for hours over 40 in a workweek. Overtime paid solely under California law — such as for working a 9th or 10th hour in a single day when total weekly hours do not exceed 40 — does not qualify as “qualified overtime compensation” (QOC) under IRC § 225, because those hours are not FLSA-covered overtime.

Only the portion of overtime pay that is also required under the FLSA (i.e., for hours over 40 in a workweek) qualifies for the federal deduction.

Source: IRS FAQ Q1/A1: “An individual who is ineligible for overtime under the FLSA does not receive qualified overtime compensation regardless of other laws or circumstances.” — IRS — Questions and Answers About the New Deduction for Qualified Overtime Compensation; IRS Notice 2025-69, § 225(c)(1) definition

What Is Deductible

The deduction covers the premium portion of overtime pay — the amount that exceeds the regular rate of pay.

Overtime type What is deductible Example ($30/hr regular rate)
Time-and-a-half (1.5×) The "half" — 1/3 of total OT pay $15/hr per OT hour ($45 − $30)
Double time (2×) The "full extra" — 1/2 of total OT pay $30/hr per OT hour ($60 − $30)

IRS shortcut for 2025: If you only know your total overtime pay and were paid time-and-a-half, divide the total overtime amount by 3. (Source: IRS Notice 2025-69)

Deduction Limits
Filing status Maximum annual deduction Phase-out begins
Single $12,500 $150,000 MAGI
Married filing jointly $25,000 $300,000 MAGI
W-2 Reporting
Tax year Employer reporting requirement
2025 NOT required to separately report (transition year — IRS Notice 2025-62). May voluntarily report in W-2 Box 14 as "QUAL OT" or provide a separate statement.
2026 and later REQUIRED to separately report qualified overtime compensation. The IRS has published a draft W-2 form indicating Box 12, Code TT for this purpose (draft form, subject to change before finalization).

If an employer did not separately report overtime for 2025, the IRS allows employees to use “any reasonable method” to calculate the deductible amount, including one-third of total overtime pay (for time-and-a-half workers), payroll records, or employer statements.

What This Deduction Does NOT Do

  • Does NOT exempt overtime from Social Security (6.2%) or Medicare (1.45%) taxes
  • Does NOT apply to California state income taxes (federal deduction only — see below)
  • Does NOT change how much overtime pay an employee receives in their paycheck
  • Does NOT apply to overtime paid solely under California law or employer policy that is not also required by the FLSA

Official IRS source: Questions and Answers About the New Deduction for Qualified Overtime Compensation Additional sources: IRS Notice 2025-69; IRS Notice 2025-62; IRC § 225; P.L. 119-21, § 70202; Schedule 1-A (Form 1040)

California State Income Tax and Overtime

The federal overtime deduction applies to federal income tax only. Overtime pay in California remains subject to California state income tax at the employee’s applicable marginal rate.

California has a progressive state income tax with nine brackets ranging from 1% to 12.3%, plus a 1% Mental Health Services Act surcharge on income over $1 million (effective top rate: 13.3%).

California does not conform to the federal overtime deduction under IRC § 225 for state income tax purposes. All overtime pay — whether required by the FLSA or only by California law — remains fully included in California taxable income.

Source: California Franchise Tax Board; FTB Tax Calculator and Rate Tables; employer guidance confirming California nonconformity

Cross-reference: For California income tax rates and brackets, see the California Income Tax page →

Can an Employer Require Overtime in California?

Under the FLSA, there is no federal limit on the number of hours an employer can require an adult employee (age 16 and older) to work in a workweek, as long as the employee is properly compensated for all overtime hours at the required rate.

Under California law, California Labor Code §§ 551 and 552 provide that every employer must allow each employee at least one day’s rest in seven. Employers cannot cause employees to work more than six days in seven. Employees who work on a 7th consecutive workday must receive the elevated 7th-day overtime rates.

Can an employer discipline or terminate an employee for refusing overtime? In general, yes — California is an at-will employment state, and an employer may discipline or terminate an employee for refusing a lawful directive to work overtime, provided the employee is compensated for all required overtime hours. However, certain industry-specific limits apply (see Nurses, below).

Employees cannot waive their right to overtime pay. Under California Labor Code § 1194, any agreement by an employee to work for less than the legal overtime rate is void and unenforceable. An employee’s consent to work overtime hours does not waive the right to receive overtime compensation.

Protections That Always Apply

Regardless of any mandatory overtime policy, the following protections apply in California:

  • All overtime hours must be compensated at the applicable California overtime rate (1.5× or 2×)
  • Employers cannot retaliate against employees who file wage complaints (29 U.S.C. § 215(a)(3); California Labor Code § 98.6)
  • Employers must provide at least one day of rest per seven-day workweek (California Labor Code §§ 551–552)
  • Child labor laws restrict hours for employees under 18
  • Meal and rest break obligations continue to apply during overtime hours

Source: California Labor Code §§ 551, 552, 1194, 98.6; 29 U.S.C. § 207; 29 U.S.C. § 215(a)(3)

Industry-Specific Overtime Rules in California

Agriculture

California has extended full overtime protections to agricultural workers through a phased implementation under Assembly Bill 1066 (2016):

  • Large employers (26 or more employees): Full daily overtime (after 8 hours/day) and weekly overtime (after 40 hours/week) applicable since January 1, 2022. Double time after 12 hours/day applicable since January 1, 2022.
  • Small employers (25 or fewer employees): Full daily and weekly overtime applicable since January 1, 2025. Double time after 12 hours/day also applicable since January 1, 2025.

This is a significant departure from the federal FLSA, which largely exempts agricultural workers from overtime requirements.

Source: California Labor Code § 857 et seq.; California DIR — Overtime for Agricultural Workers FAQ

Healthcare — Nurses and Hospital Workers

California has specific protections for nurses that go beyond standard overtime law:

Overtime pay: Registered nurses in California are explicitly not exempt from overtime under California Labor Code § 515(f), regardless of their salary. RNs earn overtime under the same daily and weekly rules as all nonexempt employees.

Mandatory overtime limits for nurses: Under IWC Wage Order No. 5, nurses assigned to work a 12-hour shift cannot be required to work more than 12 hours in any 24-hour period, except when a “health care emergency” is declared by the chief nursing officer or authorized executive — and only when:

  1. A genuine health care emergency exists
  2. All reasonable steps have been taken to provide required staffing
  3. Continued overtime is necessary for required staffing

California nurses have the right to refuse overtime without fear of retaliation beyond the 12-hour limit. Nurses who are fired or disciplined for refusing to work beyond 12 hours in a 24-hour period (absent a genuine emergency) may have a claim for wrongful termination in violation of public policy.

Source: IWC Wage Order No. 5, § 11040(9); California Labor Code § 515(f); California DIR

Healthcare — 8-and-80 System (Hospitals and Residential Care)

Under the federal FLSA (29 U.S.C. § 207(j)), hospitals and residential care facilities may apply a 14-day work period instead of a 7-day workweek for overtime purposes. Under this alternative:

  • Overtime is owed for hours over 8 in a workday or hours over 80 in the 14-day period — whichever produces more overtime pay for the employee
  • Employers must have a prior agreement with employees before beginning the 14-day period

This federal option is available in California, but California’s own daily overtime rules (triggered after 8 hours per day under Labor Code § 510) continue to apply and often produce a higher overtime obligation for the employee than the FLSA 8-and-80 method alone.

Source: 29 U.S.C. § 207(j); California Labor Code § 510

Manufacturing

California Labor Code § 510 applies to manufacturing workers without modification — daily overtime after 8 hours per workday, and weekly overtime after 40 hours per workweek, with double time after 12 hours in a workday.

Retail and Commission Employees

Under the federal FLSA (29 U.S.C. § 207(i)), retail or service employees who earn more than half their total compensation in commissions may be exempt from overtime if their regular rate exceeds 1.5× the applicable minimum wage.

In California, this federal exemption exists but applies only where the FLSA independently governs. California’s own commission sales exemption under Labor Code § 515.5 and applicable IWC Wage Orders has separate criteria. The requirements of California law apply to all employees working in California.

Source: 29 U.S.C. § 207(i); California Labor Code § 515

Compensatory Time (“Comp Time”)

Under the FLSA, private-sector employers in California cannot offer comp time in lieu of overtime pay. An employee who works overtime must receive monetary overtime compensation at the required rate.

Public-sector employers (state and local government) may offer comp time under 29 U.S.C. § 207(o), provided:

  • Comp time accrues at 1.5 hours for each overtime hour worked
  • A prior agreement exists between the employer and employee (or union)
  • The accrual cap is 240 hours (or 480 hours for public safety and emergency response employees)
  • Employees must be permitted to use accrued comp time within a reasonable period

Source: 29 U.S.C. § 207(o); California Labor Code § 510

Transportation (Motor Carrier Exemption)

Employees whose duties affect the safe operation of motor vehicles in interstate commerce may be exempt from FLSA overtime under the Motor Carrier Act exemption (49 U.S.C. § 31502). This federal exemption applies to certain truck drivers and transportation workers.

California’s own overtime law under Labor Code § 510 may still apply independently to some transportation workers not covered by the federal exemption, depending on the specific Wage Order governing the employee’s occupation.

Source: 49 U.S.C. § 31502; California DIR — applicable IWC Wage Orders

How to File an Overtime Wage Complaint in California

Employees in California who believe they have not received proper overtime pay have three options:

Option 1: California Labor Commissioner’s Office (DLSE)

Details
Agency California Labor Commissioner's Office — Division of Labor Standards Enforcement (DLSE)
Online filing File Wage or Garment Claim Online
Phone Contact your nearest Labor Commissioner's Office location
Filing form DLSE WCA Form 1 (Wage Adjudication), available at dir.ca.gov/dlse/dlse-forms-wage.htm
Deadline (overtime) 3 years from the date of the violation (California Labor Code § 1194)
Deadline (other wage claims) 3 years for minimum wage, meal and rest breaks, sick leave violations; 2 years for oral promises to pay more than minimum wage; 1 year for bounced check / payroll record access.

Claims can be filed online, by email, by mail, or in person. California’s labor laws protect all workers regardless of immigration status.

After filing, the Labor Commissioner’s Office will schedule a settlement conference. If the matter is not resolved at the conference, a hearing officer issues a binding decision.

Source: California DIR — How to File a Wage Claim

Option 2: U.S. Department of Labor — Wage and Hour Division

Details
Online dol.gov/agencies/whd/contact/complaints
Phone 1-866-487-9243 (toll-free)
Deadline 2 years from violation (3 years if willful)

Option 3: Private Lawsuit

Employees may file a lawsuit against their employer in state or federal court under California Labor Code § 1194 and/or 29 U.S.C. § 216(b). Remedies may include:

  • All unpaid overtime wages owed
  • Interest on unpaid wages
  • Reasonable attorney’s fees and court costs (California Labor Code § 1194 is a one-way fee-shifting statute — employees who prevail may recover attorney’s fees; employers who prevail may not)

PAGA claims: Under California’s Private Attorneys General Act (Labor Code § 2699 et seq.), employees may also file representative actions to recover civil penalties for Labor Code violations on behalf of themselves and other aggrieved employees. PAGA penalties are assessed per pay period per violation, with 75% of penalties going to the California Labor and Workforce Development Agency and 25% to the employees.

Retaliation Protection

Under the FLSA (29 U.S.C. § 215(a)(3)) and California Labor Code § 98.6, employers cannot retaliate against employees for:

  • Filing an overtime wage complaint
  • Participating in a wage investigation
  • Testifying in proceedings related to overtime violations

Source: California DIR — How to File a Wage Claim; 29 U.S.C. § 216(b); California Labor Code §§ 1194, 98.6, 2699

Penalties for Overtime Violations in California

Federal FLSA Penalties
Penalty type Amount
Back wages Full amount of unpaid overtime owed
Liquidated damages Equal to unpaid wages (effectively doubles recovery)
Civil monetary penalty Up to $2,451 per violation (willful/repeated — adjusted annually by DOL)
Criminal prosecution Willful: fines up to $10,000; second offense: up to 6 months imprisonment
Source: 29 U.S.C. § 216
California-Specific Penalties
California imposes additional penalties for overtime violations that go beyond the FLSA:
Penalty type Amount / Details
Back wages Full unpaid overtime, including all California-required overtime (daily, weekly, 7th day)
Interest Interest on unpaid wages
Attorney's fees Mandatory award to prevailing employee (California Labor Code § 1194)
PAGA civil penalties (overtime) Up to one hour of pay at the employee's regular rate for each overtime violation per pay period under Labor Code § 2699
PAGA default penalties $100 per employee per pay period for initial violations; $200 per employee per pay period for subsequent violations (Labor Code § 2699(f)(2))
Waiting time penalty If overtime wages are withheld at termination: employee's daily wage rate for each day wages remain unpaid, up to 30 calendar days (California Labor Code § 203)
Late payment penalty $100 per employee for first late payment; $200 for subsequent intentional violations, plus 25% of unpaid wages (California Labor Code § 204)
Source: California Labor Code §§ 203, 204, 1194, 2699; California DIR

California Overtime Law Updates (2025–2026)

Federal Changes Affecting California

  • July 4, 2025: One Big Beautiful Bill Act (P.L. 119-21) signed — created federal overtime tax deduction (IRC § 225) for tax years 2025–2028. California does not conform for state income tax purposes.
  • November 15, 2024: Federal DOL salary threshold rule vacated by federal court — federal exempt threshold remains $684/week ($35,568/year). California’s own threshold ($1,352/week) is unaffected.

California Changes

  • January 1, 2026: California statewide minimum wage increased to $16.90/hour, raising the exempt salary threshold to $1,352.00/week ($70,304/year) and the minimum overtime rate to $25.35/hour (time-and-a-half from minimum wage).
  • January 1, 2026: Computer software employee exempt hourly rate increased to $58.85/hour ($122,573.13/year) under California Labor Code § 515.5.
  • January 1, 2025: Agricultural workers at small employers (25 or fewer employees) became fully entitled to California overtime (after 8 hours/day and 40 hours/week), completing the phase-in under AB 1066.
  • January 1, 2022: Agricultural workers at large employers (26+ employees) reached full overtime parity with all other California workers.

Last reviewed: February 25, 2026 Next scheduled review: May 25, 2026

Frequently Asked Questions About Overtime in California

Does California have its own overtime law?

Yes. California has its own overtime law under California Labor Code § 510, which is substantially broader than the federal FLSA. California requires overtime after 8 hours in a single workday (not just after 40 hours per workweek), provides double-time pay after 12 hours in a workday, and includes a 7th consecutive workday rule. When California law and federal law differ, the more favorable California standard applies.

What is the overtime rate in California in 2026?

The overtime rate in California is 1.5 times the employee’s regular rate of pay for hours over 8 in a workday (up to 12) and for hours over 40 in a workweek. Based on the California minimum wage of $16.90/hour, the minimum overtime rate is $25.35/hour. Double time (2×) — $33.80/hour at minimum wage — applies after 12 hours in a workday or after 8 hours on the 7th consecutive workday in a workweek.

Does California require daily overtime?

Yes. California requires overtime pay after 8 hours in a single workday, even if the employee’s total weekly hours do not exceed 40. This daily overtime requirement is one of the most significant differences between California law and the federal FLSA, which only requires weekly overtime.

Is mandatory overtime legal in California?

Under California Labor Code §§ 551 and 552, employers must provide at least one day of rest in seven. Subject to that limit, employers may require overtime — but must properly compensate all overtime hours at the applicable California rate. For nurses, California law restricts mandatory overtime beyond 12 hours in a 24-hour period, except in genuine health care emergencies (IWC Wage Order No. 5, § 11040(9)).

Am I exempt from overtime in California?

To be exempt from overtime in California, an employee must meet all three requirements: (1) be paid a salary, (2) earn at least $1,352/week ($70,304/year) — twice the state minimum wage — and (3) spend more than 50% of their working time performing qualifying executive, administrative, or professional duties. Meeting only one or two of these requirements does not establish exemption.

Can salaried employees get overtime in California?

Yes. Being paid a salary does not automatically make an employee exempt from overtime in California. Salaried employees who earn less than $1,352/week or who do not spend more than 50% of their time on qualifying duties are nonexempt and entitled to California overtime, including daily overtime after 8 hours per day.

Is overtime taxed in California?

Overtime pay is subject to both federal and California state income taxes. However, under the One Big Beautiful Bill Act (2025–2028), FLSA-covered nonexempt employees may deduct up to $12,500 ($25,000 married filing jointly) of the premium portion of qualified overtime from federal taxable income. California does not conform to this deduction — all overtime pay remains subject to California state income tax. Additionally, overtime pay earned under California law for hours not required by the FLSA (such as the 9th hour in a day when total weekly hours are under 40) does not qualify for the federal deduction.

How do I calculate the overtime tax deduction?

For time-and-a-half pay, the deductible amount is one-third of total qualified overtime pay. For example, if you earned $9,000 in total FLSA-covered overtime at time-and-a-half, the qualified overtime compensation deduction is $3,000. The IRS confirms this calculation method in Notice 2025-69. Only overtime required by the FLSA (weekly overtime over 40 hours) qualifies — California daily overtime above and beyond what the FLSA requires does not.

How do I file an overtime complaint in California?

File a wage claim online, by email, by mail, or in person with the California Labor Commissioner’s Office at dir.ca.gov/dlse/howtofilewageclaim.htm. Alternatively, file with the U.S. DOL Wage and Hour Division at 1-866-487-9243. The California statute of limitations for unpaid overtime is 3 years (California Labor Code § 1194).

Can my employer fire me for refusing overtime in California?

In most circumstances, yes — California is an at-will employment state and employers can discipline or terminate employees who refuse lawful overtime directives. However, employers cannot retaliate against employees for filing wage complaints (Labor Code § 98.6), and nurses in California cannot be disciplined for refusing to work beyond 12 hours in a 24-hour period absent a genuine emergency (IWC Wage Order No. 5).

Can my employer give comp time instead of overtime pay?

No — private-sector employers in California cannot offer compensatory time off in lieu of overtime pay. Employees must receive monetary overtime pay at the applicable California rate. Public-sector employers may offer comp time under 29 U.S.C. § 207(o) at 1.5 hours per overtime hour, up to 240 hours accrued (480 hours for public safety/emergency workers), subject to a prior agreement.

Does working on weekends or holidays count as overtime in California?

Not automatically. Working on a weekend or holiday does not by itself trigger overtime. Overtime in California depends on: (1) total hours in a single workday (over 8 triggers 1.5×; over 12 triggers 2×), and (2) total hours in a workweek (over 40 triggers 1.5× weekly OT), and (3) whether the day is the 7th consecutive workday in the workweek (1.5× for first 8 hours; 2× thereafter). The calendar day — Saturday, Sunday, or holiday — is not independently relevant.

What happens if my employer doesn’t pay overtime in California?

Employees may recover all unpaid overtime wages, plus interest and attorney’s fees under California Labor Code § 1194. Additional civil penalties may be available under PAGA. At termination, if overtime is withheld, the employer may be liable for waiting time penalties equal to the employee’s daily wage for up to 30 days (Labor Code § 203). The statute of limitations for bringing a California overtime claim is 3 years from the date of the violation.

What is the statute of limitations for overtime claims in California?

Under California Labor Code § 1194: 3 years from the date of the violation. Under the FLSA: 2 years (3 years if the violation is willful). The California 3-year deadline is longer and will generally govern claims filed in California.

Can an employee waive their right to overtime in California?

No. Under California Labor Code § 1194, any agreement — written or oral — by an employee to work for less than the legally required overtime rate is void and unenforceable. California courts have consistently held that overtime rights are non-waivable public policy rights. An employer cannot ask an employee to sign away overtime rights, and any such agreement has no legal effect.

Do California overtime rules apply to remote workers?

Yes. California’s overtime laws apply to all employees working in California, regardless of where their employer is headquartered. A remote worker performing work in California is entitled to all California overtime protections, including daily overtime after 8 hours per workday and double time after 12 hours per workday.

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