California Labor Laws

There is a lot to Californian labor law, but below we introduce the main topics that affect how you pay and schedule your employees.

The Minimum Wage

First up, let’s try to get to the bottom of the minimum wage. It seems like a simple concept, but somehow it has managed to get quite complicated.

The federal minimum wage is currently $7.25, but California has overwritten this with a plan to move it $15 by 2022. As of the 1st of January 2017, the Californian minimum wage increased to $10.00 per hour for employers with less than 26 staff and $10.50 for all other employers.

Does this include tips?

California law doesn’t distinguish between tipped and non-tipped employees. Tips given to staff members can not be used to make up part of the employee's minimum.

City Wage Ordinances

So far, around 20 California cities and counties that have elected to overwrite both the state and federal minimums. These include Los Angeles, San Francisco, and San Diego.

We have configured Tanda with the minimum rate for each county. Allowing you to link each location your employees work at to the City's specific rate.

Overtime Rules

There are three types of overtime in California law.

Daily Overtime
In general, once an employee has worked more than 8 hours in a day, they will be entitled to 1.5 times the regular rate.

If they continue working so long, that they eventually work more than 12 hours in the day, the overtime rate needs to increase to 2 times their regular rate.

Weekly Overtime
Employees can also incur overtime if the manage to work over 40 regular only hours in a week. This type of overtime is likely when an employee works a standard Monday to Friday work week, and then also comes in on a Saturday morning.

7th Day Overtime
When an employee works seven consecutive days in a working week the first eight hours on the seventh day must be paid at 1.5 times the employee's regular rate.

If the employee works more than 8 hours on the 7th day of work, then the overtime needs to move to double time.

 

Tanda's Overtime Engine automatically calculates all three types of overtime, ensuring that they are stacked correctly so as not to allow overtime hours accrue additional overtime hours.