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California overtime rules for payroll records
Overtime review needs daily time detail, the workweek and the employee’s pay structure. A total-hours export alone may leave the reviewer unable to distinguish daily overtime, weekly overtime and special project rates.
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General information, not legal or tax advice.
Review the daily and weekly thresholds
Under DIR’s general rule for covered nonexempt employees, overtime applies after eight hours in a workday or 40 hours in a workweek. Time-and-a-half applies beyond eight through 12 daily hours and to the first eight hours on the seventh consecutive workday in a workweek. Review applicability and exceptions before configuring a payroll rule.
Sources: DIR Labor Commissioner's Office (DLSE) FAQ - Overtime
Identify hours that reach double time
DIR states that work beyond 12 hours in a day and beyond eight on the seventh consecutive workday in a workweek is paid at twice the regular rate. Preserve daily time entries so the payroll reviewer can see where hours fall instead of trying to reconstruct the schedule from a weekly total.
Sources: DIR Labor Commissioner's Office (DLSE) FAQ - Overtime
Build the regular rate from the pay record
The regular rate can include hourly earnings, salary, piecework and commissions. For workers paid at multiple rates, DIR describes a weighted average using total weekly earnings divided by hours worked. Give payroll the complete earnings detail and have unusual arrangements reviewed before approving the run.
Sources: DIR Labor Commissioner's Office (DLSE) FAQ - Overtime
Do not confuse salary with exemption
A salaried employee is owed overtime unless the applicable exemption requirements are met. California also requires payment of overtime whether authorized or not. Keep classification questions with counsel and pay-record questions with payroll; an approval dispute does not eliminate the time worked.
Sources: DIR Labor Commissioner's Office (DLSE) FAQ - Overtime
Use the determination for public works overtime
DIR’s prevailing wage FAQ directs readers to the specific wage determination for overtime requirements. Keep that determination with the job’s time records and confirm the required rates before certified reporting. Avoid applying a general payroll setting to every public works classification without review.
Sources: DIR OPRL Prevailing Wage FAQ (Q14)
Sources: overtime and regular rates
Make detailed time records usable for payroll
Tidwell helps organize hours and payroll inputs, with exemption and legal interpretation questions directed to your advisers.