If you work overtime in California but do not receive extra pay because you live elsewhere, you might be in luck. California law provides that companies based in the state must pay non-exempt employees overtime pay. Until the California Supreme Court extended overtime to out-of-state workers, however, these laws only applied to California residents. For outstate workers, the Court's decision is a cause for celebration.
In the Supreme Court case, the employees at issue lived in states like Arizona and Colorado, had worked during business trips in California and wanted to benefit from California's overtime law, according to the L.A. Times. So, they sued their employer for failure to pay overtime. The Court unanimously decided residents of other states who work in-state for California companies are protected by its overtime laws.
If employees were not so entitled, employers would be encouraged to substitute temporary employees from other states for Californians, the Court opined. The Court also made it clear that its ruling was limited to employees of California-based employers only.
Doing the Math
Overtime pay is calculated by multiplying your regular pay rate by one and one-half, also known as time-and-a-half. You are entitled to this rate of overtime pay if you work more than eight hours in any workday or 40 hours in a workweek, taking into account rest breaks and lunch period. For hourly employees, that amount is your regular pay-rate. According to the California Department of Industrial Relations, if you are salaried, determine your rate by:
- Multiplying your monthly compensation by 12 to get your annual salary
- Dividing your annual salary by 52 to get your weekly salary
- Dividing your weekly salary by 40, the legal maximum regular hours, to get your regular hourly rate
Regardless of how you are compensated - hourly, salaried or otherwise - you might be able to bring an overtime claim if you work for over the legal maximum number of hours and are denied overtime pay. This is true whether or not you are authorized to work overtime; however, you can be disciplined for working unauthorized overtime hours in violation of an employment policy.
Employees who believe they have been wrongfully denied overtime pay should contact a knowledgeable employment law attorney to find out if they can file a wage claim or a lawsuit to recover lost wages.
