The law requires employers to factor flat-sum bonuses into the calculation of the regular rate, but is silent on whether the bonus should be spread across all hours worked or just the non-overtime hours. The employee in Alvarado urged the court to adopt the method proposed by the California...
Generally,overtime payis one and one-half times (150 percent) the employee's regular rate of pay. It must be paid for all hours worked over eight hours in a workday up to and including 12 hours. This overtime rate must also be paid for the first eight hours of work on a seventh ...
The state of California has more stringent overtime pay laws than most other states. According to theCalifornia Labor Commissioner’s Office, a California employer must pay overtime, whether for authorized or unauthorized overtime hours, at the following rates: One and one-half times the employee...
Double-Time vs Overtime -- The difference in California If you are a non-exempt employee in California, you are entitled to overtime pay (1.5 times your hourly rate of pay) or possibly even double-time pay for working extra hours. This chart illustrates overtime and double-time pay: ...
The California Supreme Court has held that, under state law, when an employee earns a flat sum bonus during a pay period, the overtime pay rate will be calculated using the actual number of non-overtime hours worked by the employee during the pay period. Alvarado v. Dart Container Corp....
Thomas C. Buchmueller,Sarah Senesky.  The effect of California’s daily overtime law on hours of work: A re-examination[J]. International Advances in Economic Research . 2003 (1)“The Effect of California’s Daily Overtime Law on Hours of Work: A Re-examination.’’ Working Paper....
This calculation method requires employees to record the exact expenses incurred while using their personal vehicles for work-related purposes. These costs may include fuel purchases, vehicle depreciation, and maintenance work. Although this method is the most accurate, it tends to be the most time-...
The calculation to determine her regular rate of pay is the same as above. Although she did receive an extra $5/hr for 8 hours of work, subject to rule #5 above, overtime pay is excluded from the regular rate of pay computation. ...
The Court held that the proper calculation should account for the fact that the flat-sum bonus is payable even if the employee works no overtime during the pay period, and thus the bonus is properly treated as if it were fully earned by only the straight-time hours in the pay ...
He said the bureau’s proceedings lacked transparency and called the closure a “slap in the face” to the honest workers who racked up overtime after more than 20 staff members were placed on administrative leave during corruption investigations. ...