California Weighted Overtime Formula:
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California requires employers to calculate overtime using a weighted average rate when employees work at multiple pay rates during a workweek. This ensures fair compensation for all hours worked.
The calculator uses the California weighted overtime formula:
Where:
Explanation: The equation calculates a weighted average of all rates based on hours worked, then applies the 1.5x overtime multiplier required by California law.
Details: Proper overtime calculation is crucial for compliance with California labor laws. Incorrect calculations can result in wage claims, penalties, and legal action against employers.
Tips: Enter each different hourly rate and the corresponding hours worked at that rate. Add multiple rate/hour pairs if you worked at different pay rates. All values must be valid (rates > 0, hours > 0).
Q1: When does California require weighted overtime calculation?
A: When an employee works at two or more different hourly rates during the same workweek and works overtime hours.
Q2: Is the 1.5x multiplier always used in California?
A: For hours over 8 in a day or 40 in a week, yes. Double time (2x) applies after 12 hours in a day.
Q3: Are bonuses included in the regular rate calculation?
A: Yes, nondiscretionary bonuses must be included in the regular rate calculation for overtime purposes.
Q4: What if I work at multiple locations for the same employer?
A: All hours worked for the same employer must be combined for overtime calculation, regardless of location.
Q5: How far back can I claim unpaid overtime in California?
A: Generally, employees can recover unpaid overtime going back 3-4 years, depending on the specific circumstances.