Many people work longer hours to help manage their finances and stay afloat in our current economy –partly because of overtime pay. Overtime pay is a core provision under the Fair Labor Standards Act (FLSA). If you work more than 40 hours a week, you may receive overtime pay equal to at least 1.5 times your regular pay rate for all hours you worked in excess.
Eligibility requirements for overtime pay
Unfortunately, not all employees qualify for overtime pay. Below are the eligibility requirements under California state law:
- Must be a nonexempt employee
- Must be of legal age or 18 years
- If still of minor age, or 16 to 17 years old, the individual must not be required by law to attend school
Sometimes, employers might not have to pay employees overtime despite meeting the above criteria. For example, if your regular weekly work hours are below 40, the law doesn’t require employers to pay an overtime premium of 1.5 times your regular rate.
Employers only have to pay the overtime premium if you worked over eight hours a day or 40 hours a week. If you work for less than 40 hours but more than your regular workweek, you’ll likely receive payment for those extra hours at your regular rate.
Differentiating exempt and nonexempt employees
Exempt employees generally work white collar jobs and earn a salary. Meanwhile, nonexempt employees tend to have blue collar or manual jobs and receive an hourly wage.
Moreover, exempt employees earn at least twice the state’s minimum wage for full-time work. California increased its minimum wage to $16 this 2024. Based on this, if you earn an annual salary below $66,560, you are a nonexempt employee and may be eligible for overtime pay.
What to do if your employer misclassified you
It’s crucial to know your rights as an employee to ensure you receive the pay you rightfully deserve for your work. Your employer can’t classify you as an exempt employee by getting you to sign a contract or paying you a salary to get out of paying you overtime.
If your boss misclassifies you as an exempt employee, it is best to communicate this with your HR department right away. It may also help to seek legal counsel to further protect yourself and determine the most appropriate next course of action.