| The issue of whether an employee is entitled to | | | | weeks. Further, State overtime law doesn't apply |
| overtime compensation has been a hotly | | | | to employees covered by a collective bargaining |
| contested and litigation issue lately in California. | | | | agreement that provides an hourly rate at least |
| The main reason behind his is the fact that | | | | 30% than the minimum wage, and "premium" |
| whether an employee is entitled to overtime | | | | wage rates for overtime work. |
| wages is a factual inquiry that depends on the | | | | 4. The time that counts toward overtime except |
| specific facts and circumstance of one's | | | | regular working hours: Stanby or "on call" time |
| employment. | | | | may be compensable under Federal law, if it is |
| There are, however, several hard principles that | | | | spent primarily for the benefit of the employer |
| are important to be aware of with regard to | | | | and his business. This of course, depends on the |
| overtime wages, whether you are an employer | | | | specific circumstances of each case. Under |
| or an employee: | | | | California law, an employee must be paid for time |
| 1. Overtime compensation cannot be waived. Any | | | | considered to be on duty while on employer's |
| agreement by an employee to waive overtime | | | | premises. |
| pay or to accept less that the statutory rate he | | | | Just setup and preparation time may also be |
| is due is invalid and unenforceable. In other words, | | | | compensable if these activities are an integral part |
| even if the employer and employee sign a written | | | | of the employee's principal activity, such as oiling, |
| agreement in which they will agree that the | | | | greasing and cleaning an operating machine before |
| employee will not seek overtime pay, the | | | | using it as part of the job duties. |
| employee will still be able to sue and prevail in | | | | Travel time and commuting between home and |
| later demanding overtime pay for the hours | | | | work is generally not compensable under the |
| worked in excess of the statutory workweek. | | | | Portal-to-Portal Act. Even if the employer provides |
| 2. Overtime rate of wage - in California, the | | | | a car for the employee's use in commuting to and |
| employer must be employee one-and-a-half time | | | | from work does not make the commute time |
| of his "regular" rate for each and every hour | | | | compensable. |
| worked above 40 hours per week, or for any | | | | Meal periods generally not compensable if the |
| time worked beyond 8 hours per day. The | | | | employee is relieved of all duties. If, however, an |
| employer is to pay double time when the | | | | employee may not leave the workplace (gas |
| employee works over 12 hours in a day. Under | | | | station employees, 7/11, etc...), the meal period |
| state law, the regular rate of pay is calculated by | | | | counts as time worked for overtime purposes, |
| dividing a weekly salary into 40 hours or a normal | | | | even if the employee is relieved of all work duties |
| workweek. Regular rate includes bonuses and | | | | during mealtime. |
| commissions that the employee might be earning | | | | Training - time spend attending lectures, training |
| as part of his wages. That the commission is paid | | | | programs or meetings is not compensable if (i) |
| on a basis other than weekly, and that payment | | | | the attendance is outside regular working hours, |
| is delayed for a time past the employee's normal | | | | (ii) voluntary, (iii) the session covers material not |
| pay day or pay period, do not excuse the | | | | directly related to the employee's job, and (iv) if |
| employer from including this payment in the | | | | the employee does not perform any productive |
| employee's regular rate. | | | | work during the session. |
| 3. Certain employees are exempt from overtime | | | | No seven-day work weeks - California law |
| laws. Under federal law, workers employed in a | | | | provides that every employee is entitled to one |
| bona fide executive, administrative or professional | | | | day's rest in seven and prohibits employers from |
| capacity are exempt from overtime wage | | | | requiring employees to work more than six days |
| benefits. | | | | in seven consecutive days. This seventh-day-off |
| Certain kinds of employees are also exempt from | | | | requirement does not apply where the employee |
| overtime rules as a matter of law. This include | | | | works fewer than 30 hours a week or six hours |
| amusement park/recreational park employees, | | | | in any one day during the week. |
| outside sales persons, seamen, criminal | | | | 5. Taking time off in lieu of overtime - Under |
| investigators, computer system analysts, baby | | | | California law, employers may not require |
| sitters and personal attendants. | | | | employees to take time off in lieu of overtime |
| If negotiated as part of Collective Bargaining | | | | compensation. But employees have the right to |
| Agreement, employers may require employees to | | | | request compensatory time off at the rate of |
| work more than 40 hours per week without | | | | one-and-one-half hours off for each hour of |
| overtime pay, provided that no more than 1,040 | | | | overtime worked provided that a written |
| hours are worked during any period of 26 | | | | agreement establishes this arrangement before |
| consecutive weeks; or no more than 2,240 hours | | | | performance of the work. |
| are worked during any period of 52 consecutive | | | | |