On this page
- California Overtime Laws at a Glance
- How California Defines the Workday and Workweek
- Daily Overtime After 8 Hours
- Double Time After 12 Hours
- Weekly Overtime After 40 Hours
- When Daily and Weekly Overtime Overlap
- Overtime on the Seventh Consecutive Day
- Alternative Workweek Schedules
- Makeup Time for Personal Obligations
- The Regular Rate of Pay for California Overtime
- Exempt Employees and the 2026 Salary Test
- Other Overtime Exceptions in California
- Penalties for Unpaid Overtime in California
- California Overtime and the Federal No Tax on Overtime Deduction
- Tracking California Overtime With TimeClick
- California Overtime FAQ
- Sources
Updated October 2026. Every rule below was checked against the California Labor Code, the Labor Commissioner's pages and current IRS guidance. The sources are listed at the end.
California overtime laws are some of the strictest in the country. Federal law only requires overtime after 40 hours in a workweek. California adds daily overtime, double time and a seventh day rule, so even a short week can include overtime.
This guide covers the rules for nonexempt employees, with worked examples. It also covers alternative workweeks, makeup time, the regular rate of pay, the 2026 exempt salary test, penalties and the federal overtime tax deduction.
Key Takeaways
- Nonexempt employees in California earn 1.5 times their regular rate after 8 hours in a workday or 40 hours in a workweek, and double time after 12 hours in a workday.
- On the seventh consecutive day of work in a workweek, the first 8 hours are paid at 1.5 times and every hour after 8 is paid at double time.
- Most salaried employees must earn at least $70,304 a year in 2026, and pass a duties test, to be exempt from overtime in California.
- Since January 1, 2025, farmworkers at businesses of every size get overtime after 8 hours a day or 40 hours a week.
- The federal "no tax on overtime" deduction only covers the premium federal law requires for hours over 40 in a week, so overtime that only California requires doesn't count toward it.
What's New for 2026
The state minimum wage rose to $16.90 an hour on January 1, 2026, which set the minimum exempt salary at $70,304 a year. Starting with 2026 wages, employers also report federally qualified overtime on Form W-2 in Box 12 with code TT.
California Overtime Laws at a Glance
Nonexempt employees in California earn overtime in these cases, under Labor Code section 510(a):
| Hours worked | Pay rate |
|---|---|
| More than 8 hours in a workday, up to and including 12 | 1.5 times the regular rate |
| More than 12 hours in a workday | 2 times the regular rate (double time) |
| More than 40 hours in a workweek | 1.5 times the regular rate |
| First 8 hours on the seventh consecutive day of work in a workweek | 1.5 times the regular rate |
| More than 8 hours on that seventh day | 2 times the regular rate |
Only hours actually worked count. Sick days, vacation and paid holidays don't count toward overtime, even when they're paid. Our guide to whether PTO counts towards overtime covers this in more detail.
Two more rules from the Labor Commissioner's overtime FAQ:
- An employee can't give up the right to overtime by agreement (Labor Code section 1194).
- Overtime earned in one pay period must be paid no later than the payday for the next regular payroll period (section 204).
How California Defines the Workday and Workweek
Both the daily and the weekly rules depend on how your business sets the day and the week:
- Workday: any consecutive 24 hour period that starts at the same time each calendar day (section 500(a)). It can start at any hour and doesn't have to match the start of a shift. Different shifts can have different workdays.
- Workweek: any seven consecutive days that start on the same calendar day each week. It's a fixed, recurring period of 168 hours (section 500(b)).
- Changes: you can change a workday or workweek only if the change is meant to be permanent and isn't designed to avoid overtime. Hours can't be averaged across two or more workdays (Labor Commissioner's glossary).
Daily Overtime After 8 Hours
Hours over 8 in a workday, up to and including 12, are paid at 1.5 times the regular rate. This applies even when the employee works fewer than 40 hours that week.
Example: Jill earns $20 an hour and works three days this week.
| Day | Hours worked | Regular | Overtime (1.5x) |
|---|---|---|---|
| Monday | 10 | 8 | 2 |
| Tuesday | 5 | 5 | 0 |
| Wednesday | 10 | 8 | 2 |
| Total | 25 | 21 | 4 |
Regular pay: 21 hours × $20 = $420
Overtime pay: 4 hours × $30 = $120
Total pay: $540
Jill didn't come close to 40 hours, but she still earns 4 hours of overtime for her two long days.
Double Time After 12 Hours
Hours over 12 in a workday are paid at 2 times the regular rate.
Example: Jill works a 13 hour day on Monday.
| Day | Hours worked | Regular | Overtime (1.5x) | Double time (2x) |
|---|---|---|---|---|
| Monday | 13 | 8 | 4 | 1 |
| Tuesday | 9 | 8 | 1 | 0 |
| Wednesday | 8 | 8 | 0 | 0 |
| Total | 30 | 24 | 5 | 1 |
On Monday, hours 9 through 12 are overtime and the 13th hour is double time. At $20 an hour, her pay for the week works out like this:
Regular pay: 24 hours × $20 = $480
Overtime pay: 5 hours × $30 = $150
Double time pay: 1 hour × $40 = $40
Total pay: $670
Weekly Overtime After 40 Hours
Regular hours over 40 in a workweek are paid at 1.5 times the regular rate. Federal law has the same weekly rule, but no daily rule.
Example: Jill works 7 hours a day, Monday to Saturday, for 42 hours. No day goes over 8 hours, so there's no daily overtime. Her regular hours pass 40 by 2, so she earns 2 hours of weekly overtime.
When Daily and Weekly Overtime Overlap
An hour is only paid at one overtime rate. Labor Code section 510(a) says an employer doesn't have to combine more than one overtime rate for the same hour. The Labor Commissioner's overtime worksheet instructions (DLSE Form 55) count weekly overtime on regular hours over 40.
So work it out in this order:
- Find each day's overtime and double time hours.
- Add up the regular hours left for the week.
- Count any regular hours over 40 as weekly overtime.
Example 1: Jill works 56 hours over five days.
| Day | Hours worked | Regular | Overtime (1.5x) | Double time (2x) |
|---|---|---|---|---|
| Monday | 14 | 8 | 4 | 2 |
| Tuesday | 14 | 8 | 4 | 2 |
| Wednesday | 10 | 8 | 2 | 0 |
| Thursday | 10 | 8 | 2 | 0 |
| Friday | 8 | 8 | 0 | 0 |
| Total | 56 | 40 | 12 | 4 |
Her regular hours come to exactly 40, so no weekly overtime is added. Paying 16 more hours of weekly overtime here would pay the same hours twice.
Example 2: Jill works 10, 10, 8, 8, 8 and 4 hours, Monday to Saturday, for 48 hours. Monday and Tuesday give her 4 hours of daily overtime. That leaves 44 regular hours, which is 4 over 40, so she also earns 4 hours of weekly overtime. Total: 40 regular hours and 8 overtime hours.
Overtime on the Seventh Consecutive Day
When an employee works all seven days of a workweek, the seventh day has its own rule. The first 8 hours that day are paid at 1.5 times the regular rate, and hours over 8 at 2 times (section 510(a)).
- The seven days must fall in the same workweek. A run of seven days that crosses into the next workweek doesn't trigger the rule.
- You can't discipline an employee for refusing to work the seventh day in a workweek, and you can face a penalty for causing or pressuring an employee to give up a day of rest (Labor Commissioner's overtime FAQ).
Example 1: Jill's workweek starts on Sunday. She works 4 hours every day, Sunday to Saturday, for 28 hours. Saturday is her seventh consecutive day, so those 4 hours are overtime. Total: 24 regular hours and 4 overtime hours.
Example 2: Jill works 4 hours on Sunday and Monday, 8 hours Tuesday to Friday, and 10 hours on Saturday, for 50 hours. Sunday to Friday adds up to 40 regular hours. Saturday is the seventh day: the first 8 hours are overtime and the last 2 are double time. Total: 40 regular hours, 8 overtime hours and 2 double time hours.
Alternative Workweek Schedules
An employer can set up an alternative workweek schedule, such as four 10 hour days. At least two thirds of the affected employees in a work unit must approve it in a secret ballot election (Labor Code section 511(a)).
Under a valid alternative workweek, according to the Labor Commissioner:
- No overtime is due for scheduled days of up to 10 hours within a 40 hour week.
- Work beyond the scheduled hours, up to 12 hours in a day, and work over 40 hours in the week are paid at 1.5 times.
- The first 8 hours on a day that isn't scheduled are paid at 1.5 times.
- Work over 12 hours in a day, and work over 8 hours on a day beyond the scheduled number of workdays, are paid at 2 times.
- If you have an employee work fewer hours than scheduled, that day's hours over 8 are paid at 1.5 times and hours over 12 at 2 times.
The election has strict steps. Under the industry wage orders (for example, Wage Order 4, section 3(C)) and section 511, you need to:
- Give the affected employees a written disclosure about the proposed schedule.
- Hold at least one noticed meeting at least 14 days before the vote.
- Hold the secret ballot vote during regular working hours at the work site, before the schedule starts.
- Get approval from at least two thirds of the affected employees.
- Send the results to the Labor Commissioner's office within 30 days after they're final (section 511(e)).
You can't lower an employee's regular hourly rate because of the schedule (section 511(c)). Check the wage order for your industry before you start, since some have their own rules.
Makeup Time for Personal Obligations
California lets an employee make up time lost to a personal obligation without earning daily overtime for the extra hours, under Labor Code section 513:
- The employee must give you a signed written request for each occasion, and you must approve it.
- The makeup hours must be worked in the same workweek as the lost time.
- Makeup hours don't earn daily overtime unless the employee works more than 11 hours in a day or more than 40 hours in the week.
- You can't encourage or ask employees to request makeup time.
Example: Jill asks in writing to leave 2 hours early on Monday for an appointment and make the time up on Thursday. She works 6, 8, 8, 10 and 8 hours, Monday to Friday, for 40 hours. Thursday stays under 11 hours and the week stays at 40, so no overtime is due. Without the approved request, Thursday's last 2 hours would be daily overtime.
The Regular Rate of Pay for California Overtime
Overtime is paid on the regular rate, which can be more than the base hourly wage. From the Labor Commissioner's overtime FAQ:
- Included: hourly pay, salary, piecework, commissions, shift differentials and nondiscretionary bonuses.
- Left out: gifts for special occasions, expense reimbursements, pay for time not worked (vacation, holidays, illness), discretionary bonuses, and certain premium pay for Saturday, Sunday or holiday work.
- Two or more pay rates in one week: divide total earnings by total hours to get a weighted average.
- Flat sum bonuses: divide the bonus by the maximum legal regular hours in the bonus period. Overtime hours stay out of the math, which gives a higher regular rate. Production bonuses are divided by total hours worked.
- Salaried nonexempt employees: the hourly rate is the weekly salary divided by 40. For a monthly salary, multiply by 12, divide by 52, then divide by 40.
- Minimum wage floor: the regular rate can never be lower than the applicable minimum wage. Some California cities and counties have a local minimum wage higher than the state's $16.90, so check the rate where your employees work.
Example: a salaried nonexempt employee earns $4,000 a month.
Yearly pay: $4,000 × 12 = $48,000
Weekly pay: $48,000 ÷ 52 = $923.08
Regular rate: $923.08 ÷ 40 = $23.08 an hour
Overtime rate: $23.08 × 1.5 = $34.62 an hour
Exempt Employees and the 2026 Salary Test
Exempt employees don't earn overtime, but a salary alone doesn't make someone exempt. A salaried employee "must be paid overtime unless they meet the test for exempt status," says the Labor Commissioner. To be exempt as an executive, administrative or professional employee, a person must meet both tests in Labor Code section 515(a):
- Duties: spend more than half of their work time on exempt duties, and regularly use discretion and independent judgment.
- Salary: earn a monthly salary of at least two times the state minimum wage for full time work, which means 40 hours a week.
The 2026 salary figure is $16.90 times 2, times 40 hours, times 52 weeks.
| Pay minimum | 2026 | 2027 (from January 1, 2027) |
|---|---|---|
| State minimum wage | $16.90 an hour | $17.40 an hour |
| Executive, administrative and professional salary | $70,304 a year | $72,384 a year |
| Computer software employees | $58.85 an hour or $122,573.13 a year | $61.03 an hour or $127,108.34 a year |
| Licensed physicians and surgeons | $107.17 an hour | $111.14 an hour |
Coming in 2027
The state minimum wage rises to $17.40 an hour on January 1, 2027, which raises the minimum exempt salary to $72,384 a year. The computer software and physician minimums also go up that day. Plan salary changes before your first 2027 payroll.
California's salary level is much higher than the federal one, which is $684 a week or $35,568 a year. See our guide to the federal overtime salary threshold for that rule, and our guide on how to classify employees for help with the duties test.
Computer Software Employees
Under Labor Code section 515.5, a computer professional can be exempt if they're paid at least $58.85 an hour in 2026 (or $10,214.44 a month, or $122,573.13 a year). They must also mainly do skilled, independent work such as systems analysis or designing, building and testing software. Trainees, entry level staff, and people who only use or repair computers don't qualify.
Licensed Physicians and Surgeons
Under Labor Code section 515.6, a licensed physician or surgeon paid at least $107.17 an hour in 2026 is exempt from daily and weekly overtime, if they mainly do work that requires their license. The exemption doesn't apply to interns and residents, or to physicians covered by a valid union contract.
Other Overtime Exceptions in California
Some jobs follow different overtime rules under their industry wage order or other laws. Here are the ones small businesses ask about most.
Agricultural Workers
A 2016 law, Assembly Bill 1066, phased in overtime for farmworkers. Employers with 26 or more employees reached the full rule on January 1, 2022, and employers with 25 or fewer on January 1, 2025 (overtime for agricultural workers).
So in 2026, every agricultural employer pays 1.5 times after 8 hours in a day or 40 hours in a week, and double time after 12 hours in a day. On the seventh consecutive day, the first 8 hours are paid at 1.5 times and hours after 8 at double time. Employees are counted the same way as for the minimum wage (agricultural overtime FAQ).
Domestic Workers and Personal Attendants
- Personal attendants: caregivers hired by a private household get 1.5 times their regular rate for hours over 9 in a workday or over 45 in a workweek, under the Domestic Worker Bill of Rights (Labor Code section 1454). A worker who spends more than 20 percent of their time on other duties isn't a personal attendant.
- Other household workers who don't live in: overtime after 8 hours a day or 40 regular hours a week, and double time after 12 hours (Wage Order 15).
- Live-in household workers: overtime after 9 hours a day, with special rules for the sixth and seventh days.
- Not covered: the employer's own family members, and babysitters under 18 (Domestic Worker Bill of Rights FAQ).
Drivers and Salespeople
- Truck drivers: drivers whose hours are set by federal Department of Transportation rules, or by California's own hours of service rules, are exempt from the overtime rules in most wage orders.
- Commissioned employees: under Wage Orders 4 and 7, which cover many office and retail jobs, an employee is exempt if they earn more than 1.5 times the minimum wage ($25.35 an hour at the 2026 state rate) and more than half of their pay is commissions.
- Outside salespeople: they're exempt from the wage orders by law (Labor Code section 1171).
For the full lists, see the Labor Commissioner's pages on exceptions to the overtime law and exemptions from the overtime laws.
Penalties for Unpaid Overtime in California
When overtime is paid late or short, these penalties can apply on top of the unpaid wages.
| Penalty | What it costs | Law |
|---|---|---|
| Unpaid overtime claim | The unpaid overtime, plus interest, reasonable attorney's fees and court costs | Labor Code section 1194 |
| Civil penalty for overtime violations | $50 per underpaid employee per pay period for a first violation, $100 for each later violation, plus the unpaid wages | Labor Code section 558 |
| Waiting time penalty | The employee's daily wage for each day final pay is willfully late, up to 30 days | Labor Code section 203 |
| Wage statement penalty | The greater of actual damages or $50 for the first pay period and $100 per employee for each later one, up to $4,000, for knowing and intentional pay stub errors | Labor Code section 226(e) |
| PAGA penalty | Generally $100 per employee per pay period, with lower caps for employers who take reasonable steps to comply | Private Attorneys General Act (PAGA) |
Final pay is due right away when you let someone go, and within 72 hours when an employee quits without notice (waiting time penalty FAQ). Unpaid overtime in that final check can trigger the waiting time penalty.
PAGA Changes From 2024
The Private Attorneys General Act (PAGA) lets employees sue on the state's behalf for Labor Code violations, including unpaid overtime. Two bills, AB 2288 and SB 92, signed on July 1, 2024, changed the rules for cases filed on or after June 19, 2024:
- The employee who brings the claim must have personally experienced each violation.
- The default penalty is $100 per employee per pay period.
- If you took all reasonable steps to comply before you got a PAGA notice, penalties are capped at 15% of that amount. If you took them after the notice, the cap is 30%.
- Employees now get 35% of the penalties, up from 25%. The state keeps the rest.
Bottom Line
Accurate time records and correct overtime math are your best protection. When you find a mistake, fix it and pay what's owed quickly.
California Overtime and the Federal No Tax on Overtime Deduction
The One Big Beautiful Bill Act lets employees deduct qualified overtime pay on their federal income tax for 2025 through 2028. The deduction is up to $12,500 a year ($25,000 for a joint return) and shrinks once modified adjusted gross income passes $150,000 ($300,000 for joint filers), according to the IRS.
Only the premium the federal Fair Labor Standards Act (FLSA) requires counts: the extra "half" of time and a half for hours over 40 in a workweek. When an employer pays overtime federal law doesn't require, such as for hours over 8 in a workday, only the amount needed to meet the FLSA qualifies (IRS overtime FAQs, FS-2026-13). For California, that means:
- Daily overtime in a week of 40 hours or less doesn't count toward the deduction.
- For double time, only the extra half of the regular rate counts, and only for hours over 40 in the week.
- Most farmworkers are exempt from federal overtime (DOL Fact Sheet 12), so their California overtime doesn't count.
- It's an income tax deduction only. Overtime pay is still subject to Social Security, Medicare and other payroll taxes.
Example: Jill earns $20 an hour. She works 10 hours a day Monday to Thursday and 5 hours on Friday, for 45 hours.
California pay: 37 regular hours × $20 = $740, plus 8 daily overtime hours × $30 = $240
Total California pay: $980
Hours over 40 under federal law: 5
Qualified overtime for the deduction: 5 hours × $10 = $50
Jill got $80 of overtime premium under California law (8 hours × $10), but only $50 counts for her federal deduction.
WATCH OUT
Starting with 2026 wages, you must report qualified overtime on each employee's Form W-2 in Box 12 with code TT. Don't report all of your California overtime there. Your payroll records need to track federal overtime (hours over 40 in a week) separately from California daily overtime.
Tracking California Overtime With TimeClick
TimeClick can apply California's daily, weekly and double time thresholds for you. In Admin mode, open Preferences, then the Pay Period and OT tab. Turn on the daily, double time and weekly options, check each threshold, and set the day your workweek starts. Our guide to calculating California overtime in TimeClick walks through each step.
To check a single week by hand, the free time card calculator applies daily and weekly overtime limits. Add any double time and seventh day hours yourself. For more on federal and state rules, see our overtime laws guide.
California Overtime FAQ
Quick answers to the questions California employers ask most about overtime.
Does California require overtime after 8 hours?
Yes. Hours over 8 in a workday, up to and including 12, are paid at 1.5 times the regular rate, even if the employee works fewer than 40 hours that week.
When does double time start in California?
After 12 hours in a workday, and after 8 hours on the seventh consecutive day of work in a workweek.
Do paid holidays or sick days count toward overtime in California?
No. Overtime is based on hours actually worked. Paid time off, sick days and holidays don't count toward the daily or weekly limits.
Can an employee agree to skip overtime pay?
No. Under Labor Code section 1194, an employee can't give up the right to overtime by agreement. They can still recover the unpaid overtime later.
What is the minimum salary for exempt employees in California in 2026?
$70,304 a year, which is two times the $16.90 state minimum wage for full time work. It rises to $72,384 on January 1, 2027. Computer software employees and physicians have their own, higher minimums.
Is a salaried employee automatically exempt from overtime?
No. The employee must also pass the duties test. A salaried employee who doesn't meet both tests is owed overtime.
Can an employee make up missed time without earning overtime?
Yes, if the employee asks in writing and you approve it. The makeup hours must be in the same workweek, and overtime still applies after 11 hours in a day or 40 hours in the week.
Do farmworkers get overtime after 8 hours in California?
Yes. Since January 1, 2025, agricultural employers of every size pay overtime after 8 hours in a day or 40 hours in a week, and double time after 12 hours in a day.
Does California daily overtime count for the federal no tax on overtime deduction?
Only when it also covers hours over 40 in the workweek. The deduction is limited to the premium federal law requires, so daily overtime in a week of 40 hours or less doesn't count.
Sources
All checked in October 2026.
- California Labor Code section 500 (workday, workweek, alternative workweek)
- California Labor Code section 510 (daily, weekly and seventh day overtime)
- California Labor Code section 511 (alternative workweek schedules)
- California Labor Code section 513 (makeup time)
- California Labor Code section 515 (exempt employees)
- California Labor Code section 1454 (personal attendants)
- Labor Commissioner: Overtime FAQ
- Labor Commissioner: DLSE Form 55 instructions
- Labor Commissioner: Glossary (workday, workweek)
- Labor Commissioner: Exceptions to the general overtime law
- Labor Commissioner: Exemptions from the overtime laws
- IWC Wage Order 4 (alternative workweek election steps, computer software criteria)
- DIR: Alternative workweek election results
- Labor Commissioner: Minimum wage FAQ
- DIR news release 2025-118 (2026 minimum wage and exempt salary)
- DIR news release 2026-66 (2027 minimum wage and exempt salary)
- DIR: Computer software employee exemption rates
- DIR: Licensed physicians and surgeons exemption rates
- Labor Commissioner: Overtime for agricultural workers
- Labor Commissioner: Domestic Worker Bill of Rights FAQ
- Labor Commissioner: Waiting time penalty FAQ
- Office of the Governor: PAGA reform signed (July 1, 2024)
- IRS FS-2026-13: Qualified overtime compensation FAQs
- IRS news release IR-2025-114 (overtime deduction for 2025 through 2028)
- U.S. Department of Labor: Fact Sheet 12, agricultural employment
- U.S. Department of Labor: May 14, 2026 release on the federal salary level
This guide gives general information only. For your situation, check with the California Labor Commissioner's office or an employment attorney.
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