California overtime rules

California runs the most protective overtime system in the country. Three rules stack together — daily, weekly, and the seventh day — and together they pay overtime in situations where federal law pays none.

Rule 1 — Daily overtime

This is the rule visitors from other states miss entirely: a Californian working four 10-hour days earns 8 hours of overtime in a 40-hour week.

Rule 2 — Weekly overtime

Straight-time hours over 40 in the workweek pay 1.5×, exactly like federal law. But hours already paid as daily overtime are excluded — California bans pyramiding (paying two premiums for the same hour). You always get whichever calculation pays more for each hour, never both.

Rule 3 — The seventh consecutive day

Work all seven days of one workweek and the seventh day is premium from the first hour: the first 8 hours at 1.5× and anything beyond 8 at 2×. A single day off inside that workweek resets it.

Putting it together — an example week

A nurse in San Diego at $25/hour: Mon–Thu 10 hrs, Fri 8 hrs, Sat 6 hrs, Sun off.

ComponentHoursPay
Regular — straight time, capped at 40 by the weekly rule40$1,000
Daily overtime (2/day × 4 long days)8$300
Weekly overtime (her straight time reached 46, so 6 more hours convert)6$225
Gross54 total$1,525

This stacking is exactly what people get wrong by hand — the day-by-day calculator applies all three rules together, without double counting a single hour.

Alternative workweek schedules

Employees can vote (two-thirds, by secret ballot, in a defined work unit) to adopt an alternative workweek — classically four 10-hour days — under which daily overtime starts after 10 hours instead of 8 (12 in some healthcare schedules). Weekly overtime over 40 still applies. If your workplace never held such an election, the standard rules govern.

Who is exempt in California

California's executive, administrative and professional exemptions mirror the federal idea but with a California twist: exempt employees must earn a salary of at least twice the state minimum wage for full-time work — a higher bar than the federal threshold, so some federally-exempt workers are non-exempt in California.

And the tax gotcha: California overtime earned only because of these daily rules is not FLSA overtime — so its premium does not count toward the federal no-tax-on-overtime deduction. Weekly (over-40) overtime does. See the deduction guide.