How California overtime works (the short version)
California Labor Code §510 sets three different overtime triggers. You get whichever one is highest — the rules don't double-stack, but they do separately each pay period:
- Daily overtime. 1.5x your regular rate for hours over 8 in a single workday. 2x for hours over 12.
- Weekly overtime. 1.5x for hours over 40 in a single workweek (regardless of daily distribution).
- 7th-consecutive-day overtime. 1.5x for the first 8 hours, 2x after, on the 7th consecutive day worked in a single workweek.
This is unusually generous. Most states only have weekly overtime (40+ hrs). California is one of just four states with daily overtime, and the only one with the 7th-day double-time rule.
What "regular rate" actually means
Your regular rate isn't always your hourly wage. It includes shift differentials, non-discretionary bonuses, and certain commissions. If you regularly earn $25/hr base plus a $5/hr night differential, your regular rate is $30/hr — and your overtime is calculated on $30, not $25. Most workers and many employers get this wrong.
Common scenarios
Four 10-hour days (4×10 schedule)
Each day: 8 regular + 2 overtime hours. Across the week: 32 regular + 8 overtime hours = 40 paid hours but with 8 of them at 1.5x. At $25/hr: ($25 × 32) + ($37.50 × 8) = $1,100 weekly ($57,200/year before taxes). Most people running 4×10 don't realize they're actually earning premium pay every day.
Three 12-hour shifts (3×12, common in nursing)
Each day: 8 regular + 4 overtime hours. Across the week: 24 regular + 12 overtime = 36 paid hours, with 12 at 1.5x. At $50/hr: $1,200 + $900 = $2,100/week. The overtime premium adds 21% to gross pay vs straight-time math.
Six 8-hour days (6×8)
The first 5 days are regular (40 hrs total). Day 6 doesn't trigger 7th-day rules (that requires consecutive-day work without a day off in the workweek), but those 8 extra hours on day 6 push you over 40 hours weekly — so all 8 are paid at 1.5x.
Seven consecutive days (7×8)
Days 1-5: 40 regular hours. Day 6: 8 hours at weekly OT (over 40). Day 7: first 8 hours at 1.5x (7th-day rule), nothing past 8 (so no double-time). Total weekly pay at $30/hr: $1,200 + $360 + $360 = $1,920.
Who is NOT covered by California overtime?
Several categories of workers are exempt from California overtime rules:
- Executive, administrative, and professional employees earning at least 2× the state minimum wage on a salary basis (~$68,640/year in 2025; rises with minimum wage).
- Outside salespeople who spend more than 50% of their time selling away from the employer's place of business.
- Certain computer professionals earning above the annually adjusted hourly threshold (~$53.80/hr in 2025).
- Independent contractors (true 1099, not misclassified W-2 workers).
- Specific industries with their own wage orders (agriculture, public sector, certain healthcare workers).
If you're classified as exempt but doing the work of a non-exempt employee, you may be owed back overtime — California courts have been aggressive about misclassification claims.
Overtime + taxes
Overtime pay is taxed exactly the same as regular pay — it's ordinary wages, no special rate applies. But because a high-overtime week temporarily pushes you into a higher withholding bracket on that paycheck, employers sometimes withhold more than your annual marginal rate. The excess comes back at tax time.
To see how much overtime survives California taxes, run your annualized gross through the paycheck calculator. Annualized = (weekly gross × 52). For a typical week with 8 hours of OT, that math usually adds $5,000-$10,000 in gross — and roughly 70% of that survives taxes.