EmploymentQuestion 223 of 1632

Under California law, how is daily overtime determined relative to the regular rate of pay?

a.1.5 times the employee's base hourly wage, excluding any bonus
b.1.5 times the state minimum wage, whatever the employee earns
c.A multiple, 1.5× or 2×, of the worker's regular rate of pay
d.A flat premium of fifteen dollars an hour above the base wage

Explanation

Labor Code §510(a) sets overtime as a multiple of the employee's REGULAR RATE — not less than 1.5× beyond eight hours in a workday, and not less than 2× beyond twelve. The regular rate is not the same as the base hourly wage: nondiscretionary bonuses, shift differentials and similar earnings are folded in, which is why paying 1.5× the bare base rate underpays. The minimum wage is a floor on pay, not the base for a premium the employee has earned at a higher rate. And no provision converts overtime into a flat dollar premium; the multiplier moves with what the employee actually earns.

Law Reference: Labor Code §510(a)

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