Unpaid Overtime in California: What You're Owed and How to Recover It

California has some of the strongest overtime protections in the country, and also some of the most misunderstood. If you are a nonexempt employee, you are owed extra pay not just for working more than 40 hours in a week, but for working more than 8 hours in a single day, something most states do not require. Many workers are underpaid because their employer miscalculates the rate, ignores daily overtime, or wrongly labels them "exempt." Here is how California overtime actually works, who qualifies, and how to recover what you are owed.

At a glance

• Nonexempt employees earn 1.5x their regular rate after 8 hours in a day and after 40 hours in a week, and 2x after 12 hours in a day.
• California counts daily overtime, so even a workweek under 40 hours can trigger overtime pay if a single day runs long.
• A "salary" and a title do not make you exempt. In 2026, an exempt employee must earn at least $70,304 per year and meet a duties test.
• Common ways employers underpay include misclassification, off-the-clock work, and calculating overtime on the wrong "regular rate."

How does overtime pay work in California?

California requires premium pay based on both the hours in your day and the hours in your week. For a nonexempt employee, the core rules are:

• 1.5x (time and a half) for hours worked beyond 8 in a workday, and beyond 40 in a workweek.
• 2x (double time) for hours worked beyond 12 in a workday.
• 1.5x for the first 8 hours worked on the seventh consecutive day in a workweek, and 2x beyond 8 hours on that seventh day.

Because California counts daily overtime, you can be owed overtime even in a week with fewer than 40 total hours. If you work a 10-hour day, the last 2 hours are overtime, regardless of your weekly total. This daily rule is one of the most commonly ignored parts of California law.

What is the "regular rate," and why does it matter?

Overtime is calculated on your "regular rate of pay," not just your base hourly wage, and that trips up a lot of employers. The regular rate generally includes not only your hourly wage but also nondiscretionary bonuses, commissions, shift differentials, and certain other earnings. If your employer pays overtime based only on your base rate while ignoring a nondiscretionary bonus, your overtime is being shorted. Over months or years, that gap can add up to a substantial amount.

Are you exempt or nonexempt?

This is the question that decides whether you are owed overtime at all, and employers get it wrong constantly. Being paid a salary does not make you exempt, and neither does a fancy title. To be exempt under the most common "white-collar" categories (executive, administrative, professional), an employee generally must meet both of two tests:

• The salary test. In 2026, the employee must earn at least twice the state minimum wage for full-time work, which is $70,304 per year (about $1,352 per week), based on the $16.90 statewide minimum wage. Some categories are higher, for example the computer software professional exemption requires roughly $122,573 per year in 2026.
• The duties test. The employee must actually spend more than half their time on qualifying exempt duties. A "manager" who mostly does the same work as the people they supervise may not truly be exempt.

If you are paid a salary below $70,304 in 2026 and treated as exempt, or you carry an exempt title but do mostly non-exempt work, you may be misclassified and owed overtime.

Common ways employers underpay overtime

• Misclassification. Labeling a nonexempt worker as exempt, or as an independent contractor, to avoid paying overtime.
• Off-the-clock work. Requiring or allowing work before clocking in, after clocking out, during unpaid meal breaks, or from home, without pay.
• Wrong regular rate. Calculating overtime on base pay only, leaving out bonuses or commissions.
• Ignoring daily overtime. Paying overtime only after 40 weekly hours and skipping the daily 8-hour rule.
• Averaging hours. Averaging hours across two weeks to avoid overtime, which California does not allow.
• Comp time instead of pay. Substituting time off for required overtime pay in situations where the law does not permit it.

What can I recover for unpaid overtime?

Potentially more than just the missing overtime. Depending on the facts, recovery can include the unpaid overtime wages themselves, interest, and additional amounts the law provides for wage violations. If overtime and other wages were unpaid when your job ended, "waiting time" penalties can add up to 30 days of pay. Inaccurate wage statements can carry their own penalties. And where an employer misclassified many workers the same way, a group or representative action may recover wages for everyone affected. The amounts can be significant, especially over a multi-year period.

How do I recover unpaid overtime?

California gives you more than one path. You can file a wage claim with the Labor Commissioner (the state Division of Labor Standards Enforcement), or you can bring a lawsuit in court. In some situations, a representative action under the Private Attorneys General Act (PAGA) can also be used to pursue penalties. Which path fits depends on your situation, the amounts, and whether other workers were affected. The key is not to wait, because wage claims carry deadlines, generally three years for statutory claims and up to four years under the unfair-competition law.

What to do if you think you are owed overtime

• Save your pay stubs, time records, and schedules, and note any hours you worked that were not paid.
• Write down your typical daily and weekly hours, and any off-the-clock work.
• If you are salaried, note your annual salary and what you actually do day to day.
• Do not access company systems after a separation.
• Talk to an employment lawyer promptly. Wage claims carry deadlines. Do not calendar a date from a guide.

Frequently asked questions

How does overtime pay work in California?

Nonexempt employees earn 1.5x after 8 hours in a day and after 40 in a week, and 2x after 12 hours in a day. On a seventh consecutive workday, the first 8 hours are 1.5x and hours beyond 8 are 2x. California counts daily overtime, not just weekly.

Does being paid a salary mean I don't get overtime?

No. Salary alone does not make you exempt. In 2026 an exempt employee must earn at least $70,304 per year and meet a duties test. If you earn less, or a title does not match your actual duties, you may be owed overtime.

What counts toward my overtime "regular rate"?

More than base pay. The regular rate generally includes nondiscretionary bonuses, commissions, and shift differentials. Overtime calculated on base pay alone is often shorted.

Can I get overtime if I worked less than 40 hours that week?

Yes. California's daily overtime rule means hours beyond 8 in a single day are overtime even if your weekly total is under 40.

How long do I have to claim unpaid overtime?

Generally three years for statutory wage claims, and up to four years under the unfair-competition law. Some deadlines are shorter, so confirm yours with a lawyer rather than relying on a guide.

Think your overtime is being shorted?

If you are working long days without proper overtime, doing off-the-clock work, or were labeled "exempt" on a salary below the threshold, it is worth having your pay reviewed before a deadline passes. We represent employees, only employees, across California, and most of our work is in Los Angeles. The consultation is free. We handle most employment cases on a contingency-fee basis: you do not pay an attorney's fee unless we recover for you, and you are not responsible for the costs we advance if there is no recovery. We will explain the specific fee terms in writing before you decide to move forward.

Call (424) 255-8376 or contact us for a free, confidential consultation about your wages.

The Law Offices of Jonathan J. Delshad is a Los Angeles based employment law firm representing employees across California in wrongful termination, discrimination, retaliation, harassment, and wage and hour matters. Representing employees is the core of the firm's practice. Mr. Delshad serves as Editor-in-Chief of the California Wrongful Termination Law Review and trained at Latham & Watkins. Recognition includes Super Lawyers (2022 to 2026), Best Lawyers (since 2017), and an Avvo 10.0 "Superb" rating. Reviewed for California employment law accuracy. Last updated: July 29, 2026.

Attorney advertising. This article is educational only and is not legal advice. Reading it does not create an attorney-client relationship, which exists only under a signed engagement agreement. Every case is different, and outcomes depend on the specific facts. Deadlines can run early, so consult a lawyer promptly about your situation.