California overtime law

Who is exempt

Executive, administrative and professional staff must meet both the duties tests and the salary test of at least twice the monthly state minimum wage. Salaried staff who fail the tests are owed overtime. Source: dir.ca.gov↗ (opens in a new tab)

Industry-specific rules

Computer software employees can be exempt in 2026 only if paid at least $58.85 an hour or $122,573.13 a year. Alternative workweek schedules (for example four 10-hour days) are allowed under most wage orders. Source: dir.ca.gov↗ (opens in a new tab)

Penalties

Overtime is due by the next payday and cannot be waived. Former employees can claim waiting-time penalties (Labor Code 203), and workers can file a wage claim or sue. Source: dir.ca.gov↗ (opens in a new tab)

Recent changes

From 1 January 2026 the state minimum wage is $16.90, raising the exempt salary floor to $70,304 a year. The computer software exemption rate rose to $58.85 an hour. Source: dir.ca.gov↗ (opens in a new tab)

The law and where to check

The law: Cal. Lab. Code § 510; § 515 (exemption salary) (opens in a new tab)

The agency: California Department of Industrial Relations, Labor Commissioner's Office (opens in a new tab)

What federal law says

The federal Fair Labor Standards Act (FLSA) requires 1.5 times the regular rate for hours over 40 in a workweek for non-exempt employees. Federal law has no daily overtime. The federal salary level for most exempt staff is $684 a week. Where state and federal rules differ, follow the rule that gives the employee more. Source: U.S. Department of Labor↗ (opens in a new tab) Source: U.S. DOL — salary levels↗ (opens in a new tab)

Free tool: work out overtime pay with our State Overtime Calculator.

Overtime checklist for California employers

A simple order of work, based on the rules above. It is not a legal checklist.

1. Decide which employees are non-exempt, and check exempt staff meet the salary and duties tests.
2. Set your workweek (a fixed, repeating 7-day period).
3. Track all hours worked, including daily hours if your state has daily overtime.
4. Pay overtime at 1.5 times the regular rate, including bonuses where required.
5. Use our free State Overtime Calculator to check the numbers.
6. Keep time and pay records.

More California employment law guides

• All California employment laws
• California final paycheck law
• California paid sick leave law
• California meal and rest break laws
• California pay frequency law
• California vacation and PTO payout law
• California new hire reporting
• California at-will exceptions

Overtime laws in other states

See every state on one page, or pick a state:

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• District of Columbia
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Disclaimer: This guide provides general information based on publicly available official sources and is for information only. It is not legal, tax, payroll or employment-law advice and does not guarantee compliance with federal, state or local requirements. Rules can depend on your location, industry, contracts and other circumstances, and laws change. Always check the official source, the relevant government agency or a qualified professional before making a decision. MadyHR.ai accepts no responsibility for any action taken based on this page.

Last checked: October 19, 2026. Every rule and source link on this page was checked against the official government source on this date. Laws change, so always open the source link before you act.