By Kate Smith, SHRM-CP
In California, overtime requirements for non-exempt employees are governed by state law and are calculated based on an employer’s established workday and workweek. Employers should clearly define their workday and workweek in a manner that aligns with their industry and business operations and apply those definitions consistently to all employees.
Let’s review a few definitions to get started:
Workweek: A fixed 7-day period (for example, Monday–Sunday). Employers may choose which day of the week to start, but it must remain the same each workweek. If an employer does not set a workweek, California’s default is Sunday–Saturday. The workweek is used to determine weekly overtime.
Workday: A 24-hour period that begins at the same time each day. Employers may choose the workday start time, but it must remain the same each workday. If an employer does not define a workday, California’s default is 12:01 a.m. to 12:00 a.m. The workday is used to determine daily overtime.
Here are some basic concepts of when non-exempt employees must be paid overtime and double time:
- Working more than 8 hours in a workday;
- Working more than 40 hours in a workweek (hours should not be counted more than once for overtime purposes);
- Working more than 12 hours in a workday (double time); and
- On the 7th consecutive day worked in a workweek (overtime after 8 hours, and double time after 12 hours).
Overnight, extended, or irregular shifts can make overtime calculations a little trickier. If an evening shift crosses into a new workday, the hours must be split according to the employer’s defined workday, not treated as a single continuous shift.
For example: An employee works from 8:00 p.m. Monday to 5:30 a.m. Tuesday, and the employer’s workday begins at 12:01 a.m. The hours are allocated as follows:
- Monday, 8:00 p.m. – 12:00 a.m. = 4 hours of work count toward Monday’s workday.
- Tuesday, 12:01 a.m. – 5:30 a.m. = 5.5 hours of work count toward Tuesday’s workday.
Daily overtime is calculated separately within each workday. If the employee does not work an additional shift on Tuesday and their total Tuesday hours remain at or below 8 hours, no daily overtime is owed. The same concept applies to extended or back-to-back shifts: if hours are split between two defined workdays and neither workday exceeds the daily overtime thresholds, daily overtime (or double time) may not be triggered, even if the employee worked many continuous hours. Weekly overtime still applies if total hours worked in the workweek exceed 40. To avoid payroll errors and wage/hour compliance issues, employers should define these periods clearly and apply them consistently.
As an additional note, please be aware of new federal overtime tracking and Form W-2 reporting requirements under the “One Big Beautiful Bill Act.” Employers should begin working with their payroll provider now to ensure they are separately tracking (1) qualified overtime compensation (generally, the premium portion of FLSA overtime for hours over 40 in a workweek) and (2) qualified tips (if applicable). This tracking will support the required W-2 reporting for calendar-year 2026 wages. Because California overtime rules differ from the federal (FLSA) definition, California employers will need to distinguish between FLSA-qualified overtime and additional California overtime to ensure the correct amounts are reported. We recommend coordinating with your payroll provider, CPA, or tax advisor.
Please contact your Silvers HR Consultant for more information on this topic.