California law mandates premium pay for employees who work more than eight hours in a workday, more than 40 hours in a workweek, or for the first eight hours on the seventh consecutive day of work in a workweek. This premium pay is calculated at one and one-half times the employee’s regular rate of pay. For example, if an employee’s regular rate is $20 per hour and they work 10 hours in a single day, they are entitled to two hours of pay at $30 per hour (1.5 x $20). Working over 12 hours in a workday requires double the employee’s regular rate of pay.
Adherence to regulations regarding extra compensation is crucial for businesses operating within the state. Compliance prevents potential legal issues, fosters positive employee relations, and ensures fair compensation for work performed. Historically, these protections have been put in place to prevent worker exploitation and promote a reasonable work-life balance. This directly impacts employee morale and productivity, leading to long-term benefits for both the worker and the company.