California pays 1.5× the regular rate for hours over 8 in a day (up to 12) and over 40 in a week, and 2× for hours over 12 in a day and over 8 on the 7th consecutive day — Labor Code § 510.
- California Minimum Wage 2026: $16.90/hr (effective January 1, 2026). Time-and-a-half at minimum wage is $25.35/hr; statutory double time is $33.80/hr.
- Exempt Salary Floor: $70,304.00/year ($1,352.00/week), exactly twice the state minimum wage for full-time employment (Labor Code § 515).
- Salaried Non-Exempt Regular Rate: Calculated strictly as
Weekly Salary ÷ 40(Labor Code § 515(d)). California law strictly prohibits the federal fluctuating workweek (FWW) method. - Regular Rate Components: Base hourly wages plus non-discretionary bonuses, sales commissions, and shift differentials divided by all applicable hours.
- Strict Anti-Pyramiding: Daily and weekly overtime never double-count the same hour. The employee is paid the greater entitlement, never both for the same hour.
- Alternative Workweek Schedules (AWS): Allowed under Labor Code § 511 (e.g. 4/10 schedule) only after a two-thirds secret-ballot employee vote and formal registration with the DLSE.
- Federal Tax Deduction Trap: The federal OBBBA § 225 overtime tax deduction applies exclusively to the FLSA weekly 0.5× slice over 40 hours; it does NOT cover California daily overtime, 7th-day premiums, or 2.0× double time.
How to calculate overtime in California — step by step
Calculating overtime pay in California requires an employer to follow five sequential mathematical steps for each designated workweek. Because daily overtime and double-time rules trigger independently of weekly hours, every workday must be audited individually before running weekly totals:
- Step 1: Determine the Regular Rate of Pay:Establish the worker's true hourly regular rate. The regular rate cannot fall below the California minimum wage ($16.90/hr in 2026). If the employee earned non-discretionary performance bonuses, commissions, or shift differentials, add those payments to straight-time earnings before establishing the regular rate.
- Step 2: Calculate Daily Overtime (1.5× Regular Rate):For each workday in the workweek, identify hours worked between 8 and 12. These hours are daily overtime hours, compensated at 1.5× the regular rate.
- Step 3: Calculate Daily Double Time (2.0× Regular Rate):For each workday, identify any hours worked beyond 12. These hours are statutory double-time hours, compensated at 2.0× the regular rate.
- Step 4: Audit the 7th Consecutive Day Rule:If the employee worked all seven consecutive days within a single employer-established workweek, the first 8 hours on the 7th day must be paid at 1.5×, and any hours beyond 8 on that 7th day must be paid at 2.0× double time.
- Step 5: Audit Weekly Hours (Anti-Pyramiding Check):Calculate total weekly hours. Under California's anti-pyramiding statute, hours already compensated under daily overtime (1.5×) or daily double time (2.0×) do not count toward the 40-hour weekly baseline. Only regular straight-time hours (up to 8 per standard workday) accumulate toward the 40-hour weekly threshold. Any remaining regular hours worked beyond 40 are paid at 1.5×.
Calculate Your California Overtime & Double-Time Pay
Want to calculate your exact California gross pay and take-home check across regular, daily 1.5×, and 2.0× tiers? Use our specialized California engine.
Calculate your California weekCalifornia overtime calculation examples
Below are five checked, step-by-step mathematical examples demonstrating how California overtime, double time, regular rate bonus adjustments, salaried non-exempt pay, and the 7th consecutive day rule work in practice:
An hourly worker earning $20.00 per hour works an extended 14-hour shift on Tuesday and zero hours the rest of the week (14 total weekly hours). Here is the statutory pay calculation:
Paid at the standard regular rate (1.0×):
8 hours × $20.00 / hr = $160.00 Regular PayPaid at time-and-a-half (1.5× regular rate = $30.00/hr):
4 hours × $30.00 / hr = $120.00 Daily Overtime PayPaid at statutory double time (2.0× regular rate = $40.00/hr):
2 hours × $40.00 / hr = $80.00 Double-Time PaySumming all three statutory pay tiers:
$160.00 + $120.00 + $80.00 = $360.00 Total Gross PayAn employee earning $22.00 per hour works Monday through Friday with daily hours of 10, 10, 8, 8, and 8 (44 total weekly hours). Here is how California's anti-pyramiding rule applies:
Evaluate each workday for hours exceeding 8:
- Monday (10 hrs): 8 regular hours + 2 daily overtime hours
- Tuesday (10 hrs): 8 regular hours + 2 daily overtime hours
- Wednesday (8 hrs): 8 regular hours + 0 overtime hours
- Thursday (8 hrs): 8 regular hours + 0 overtime hours
- Friday (8 hrs): 8 regular hours + 0 overtime hours
Total Daily Overtime = 2 + 2 = 4 Daily Overtime HoursSubtract daily overtime hours from total weekly hours to find regular hours:
44 total hours − 4 daily overtime hours = 40 Regular HoursBecause regular hours do not exceed 40, the weekly check yields the same 4 overtime hours, not 8. The daily overtime hours are never double-counted.
Regular straight-time earnings (40 hrs × $22.00 = $880.00) plus overtime (4 hrs × $33.00 = $132.00):
40 × $22.00 ($880.00) + 4 × $33.00 ($132.00) = $1,012.00 Total Gross PayAn employee earning a base rate of $22.00 per hour works 45 hours in a week and earns a $200.00 non-discretionary production bonus. Here is the statutory regular rate and overtime calculation:
Multiply base hourly wage by total hours worked, then add the non-discretionary bonus:
Base Hourly Pay: 45 hours × $22.00 / hr = $990.00Total Compensation: $990.00 + $200.00 bonus = $1,190.00Divide total straight-time compensation by total hours worked:
Regular Rate = $1,190.00 ÷ 45 hours = $26.44 / hourBecause straight-time pay ($22.00/hr) is already paid across all 45 hours in Step 1, the employer owes the additional half-time (0.5×) premium on the regular rate for the 5 overtime hours:
Overtime Premium = 5 hours × (0.5 × $26.44) = 5 × $13.22 = $66.10Add the overtime premium to total straight-time compensation:
$1,190.00 + $66.10 = $1,256.10 Total Gross PayA salaried non-exempt employee in California receives a guaranteed salary of $1,200.00 per week and works 45 hours during a busy workweek. Here is their statutory pay calculation:
Under California law, a salaried non-exempt employee's regular rate is strictly calculated by dividing weekly salary by 40 hours:
Regular Rate = $1,200.00 weekly salary ÷ 40 hours = $30.00 / hourMultiply the regular rate by 1.5:
Overtime Rate = 1.5 × $30.00 = $45.00 / hourThe weekly salary covers exactly 40 regular hours. The worker must receive 1.5× the regular rate ($45.00/hr) for all 5 overtime hours:
Overtime Pay = 5 hours × $45.00 / hr = $225.00Total Gross Pay = $1,200.00 base salary + $225.00 overtime = $1,425.00 Total PayAn hourly worker earning $20.00 per hour works all seven consecutive days in an employer's designated workweek. On the 7th consecutive day, they work a 10-hour shift. Here is the pay owed for that 7th day:
Under Labor Code § 510, the first 8 hours on the 7th consecutive workday are paid at 1.5× regular rate ($30.00/hr):
First 8 hours at $30.00 / hr = $240.00 Overtime PayAll hours worked beyond 8 on the 7th consecutive day are paid at 2.0× double time ($40.00/hr):
2 hours at $40.00 / hr = $80.00 Double-Time PayCombine the 7th-day overtime and double-time earnings:
$240.00 (Overtime) + $80.00 (Double Time) = $320.00 Total for that DayWhat is the regular rate of pay in California?
In California wage and hour litigation, improper regular rate calculation is the most common employer violation. Under California Department of Industrial Relations (DIR) and DLSE standards, the regular rate of pay is not merely the base hourly wage printed on your offer letter.
The regular rate must reflect the true economic remuneration received for work performed:
- Mandatory Inclusions: Base hourly wages, non-discretionary performance bonuses, production bonuses, attendance bonuses, sales commissions, piece-rate earnings, and shift differentials (e.g. night or weekend premiums).
- Permissible Exclusions: Discretionary gifts completely unrelated to hours worked or performance (e.g. unexpected holiday gifts), expense reimbursements, paid time off (unworked vacation, sick leave, PTO), and statutory overtime premiums already paid.
Regular Rate = Total Straight-Time Compensation ÷ Total Hours Worked in WorkweekDLSE Enforcement Manual § 49.2.4; Marin v. Costco Wholesale Corp. (2008).
Daily overtime in California — does California have daily overtime?
Yes, California strictly mandates daily overtime. While federal law and 46 other states calculate overtime exclusively after 40 weekly hours, California Labor Code § 510 guarantees overtime for extended workdays regardless of weekly totals.
Under California daily overtime rules:
- Any hours worked over 8 up to 12 in a single 24-hour workday must be paid at 1.5× the regular rate.
- Daily overtime is earned even if the employee works only 8.5, 10, or 12 hours during the entire week and takes the remaining days off.
- Daily overtime cannot be waived by private agreement between employer and employee, unless an Alternative Workweek Schedule (AWS) is enacted under Labor Code § 511.
California double time — after 12 hours
California is the only state in the United States that has a statutory double-time mandate. Under California Labor Code § 510, an employer must pay two times (2.0×) the employee's regular rate of pay for:
- All hours worked over 12 in a single workday; and
- All hours worked over 8 on the 7th consecutive day of work in an employer's designated workweek.
At the California 2026 minimum wage of $16.90/hr, double time pays a minimum of $33.80 per hour. For a worker earning $30.00/hr, double time pays $60.00 per hour. To model complex shifts over 12 hours or union double-time tiers, use our dedicated double-time calculator.
California overtime calculator biweekly — why the week still rules
Many California employers issue paychecks on a biweekly basis (every two weeks). However, when calculating overtime, the 168-hour workweek still strictly rules:
- An employer must designate a fixed, recurring workweek consisting of 7 consecutive 24-hour periods (168 consecutive hours).
- Daily overtime (over 8 hours), double time (over 12 hours), and weekly overtime (over 40 hours) must be calculated separately within Week 1 and Week 2.
- An employer cannot average hours across the two-week period. Working 60 hours in Week 1 and 20 hours in Week 2 requires 20 hours of overtime pay in Week 1, even though the biweekly average is 40 hours per week.
Overtime in California with taxes — and the 'qualified overtime' trap
California workers who earn significant overtime must account for both state tax brackets and federal tax deduction limitations.
California State Income Tax and SDI
California maintains the highest graduated state income tax rates in the nation (ranging from 1.0% up to 13.3%), plus mandatory State Disability Insurance (SDI) payroll deductions (1.2% in 2026). When overtime shifts inflate a biweekly paycheck, payroll software annualizes that single check, resulting in steep state and federal tax withholding. However, tax brackets are marginal, and excess withholding is refunded when filing your state Form 540 and federal Form 1040.
The 'Qualified Overtime' Deduction Trap (OBBBA § 225)
Under the federal One Big Beautiful Bill Act (OBBBA § 225), eligible workers can claim a below-the-line federal tax deduction for overtime pay on Schedule 1-A for tax years 2025 through 2028. However, California workers must be aware of a critical statutory exclusion:
Federal statute OBBBA § 225 explicitly restricts the federal overtime deduction to the statutory Fair Labor Standards Act (FLSA) 0.5× premium slice for hours physically worked beyond 40 in a single workweek. California daily overtime (hours 8–12 on shifts where weekly hours stay under 40), 7th consecutive day premiums, and all 2.0× double-time premiums are state-mandated extras that exceed federal law. The IRS excludes these state premiums from Box 12 Code TT on Form W-2.
To calculate your exact federal deduction savings and understand how withholding applies, explore our companion guide on is overtime taxed more and run your figures in our overtime tax calculator.
California overtime laws 2026 — the short version
Here is a concise reference summary of the governing statutory rules for California overtime in 2026:
- Daily Overtime: 1.5× regular rate for hours >8 up to 12 in a workday (Labor Code § 510).
- Daily Double Time: 2.0× regular rate for hours >12 in a workday (Labor Code § 510).
- Weekly Overtime: 1.5× regular rate for hours >40 in a workweek (Labor Code § 510).
- 7th Consecutive Day: First 8 hours at 1.5×; hours >8 at 2.0× double time (Labor Code §§ 510, 552).
- California Minimum Wage (2026): $16.90/hr state baseline (effective Jan 1, 2026).
- Exempt Salary Threshold (2026): $70,304/yr ($1,352/wk), requiring >50% exempt duties (Labor Code § 515).
- Salaried Non-Exempt Divisor: Weekly Salary ÷ 40 hours; no fluctuating workweek (Labor Code § 515(d)).
- Alternative Workweek: Valid 4/10 schedule allowed under Labor Code § 511 only with 2/3 secret employee vote.
For the complete legal analysis, historical case law precedents, and comprehensive statutory citations across all 17 IWC Wage Orders, read our full legal explainer on California overtime and double-time rules. You can also explore national FLSA rules and state-by-state calculation principles in our overtime pay calculator guide.