California Overtime Rules for Employers of Record

The rule

California generally requires one and one-half times the regular rate for hours over 8 in a workday, up to and including 12, and for the first 8 hours on the seventh consecutive day in a workweek. Hours over 12 in a workday, and hours over 8 on that seventh day, are paid at double the regular rate. Weekly overtime is also due after 40 hours worked. Overtime is based on hours worked. A sick day or a paid holiday that was not worked does not count. Unauthorized overtime still has to be paid if the employer suffered or permitted the work. The employee cannot waive overtime.

What employers must do

Pay daily and weekly overtime, whichever the wage order requires, on the actual hours. Include nondiscretionary bonuses in the regular rate. The federal salary test of $684 a week is not enough in California. The DIR says the 2027 exempt salary floor is $72,384 a year, from $17.40 times 2 times 40 times 52, and the duties test still has to be met. Some cities and some industries, including fast food and health care, have higher minimum wages.

Effective dates

The daily overtime rules are current. The statewide minimum wage is $16.90 an hour from January 1, 2026, and $17.40 an hour from January 1, 2027. The $72,384 exempt salary floor is effective January 1, 2027.

What this means for BOSS partners and associates

BOSS is often the employer of record for the associate. Wage, break, leave, posting, and tax rules usually follow the state where the associate works. Tell BOSS that state before the assignment starts. Associates should record every hour worked on the timesheet. Do not promise a pay practice, a leave bank, or a posting the statute does not require.

Questions? Contact BOSS Support at support@backofficenow.com.

Sources

This article is general information, not legal advice. Laws change; check with BOSS Support or your own counsel for your situation.