Yes, California allows employers to require overtime work and take disciplinary action if a worker refuses. However, employers cannot penalize a worker for refusing to work a seventh consecutive workday in a workweek. Employers may face penalties if they force or coerce an employee to give up a day of rest during the workweek.
California Labor Laws
California Minimum Wage
In 2021, California employers with 26 or more employees must pay a minimum wage of $14 per hour, while those with 25 or fewer employees must pay $13 per hour. These rates will increase by $1 per hour each year until all employers are paying $15 per hour by 2023.
California Labor Law Posters
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History of California Labor Laws
California has a long history of pioneering labor laws:
- In 1911, California was among the first states to introduce voluntary workers’ compensation plans, with legislation following in 1913.
- In 1937, California labor and employment laws were consolidated into the California Labor Code.
- In 1973, three years after the Federal OSH Act and partly due to the tragic 1971 San Fernando Tunnel explosion that killed 17 workers, California enacted its own Occupational Safety and Health Act.
- In 1975, the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act was passed to address migrant worker concerns.
- California has robust protections for child actors, starting with the California Child Actor’s Bill in 1939, which has been frequently updated to stay current.
Municipality Minimum Wage Laws
California allows its cities and counties to set their own minimum wage laws and posting requirements, and more than 30 municipalities have done so.
- Alameda: $15 per hour (effective July 1, 2021)
- Belmont: $15.90 per hour (effective Jan. 1, 2021)
- Berkeley: $16.07 per hour plus CPI (effective July 1, 2021)
- Cupertino: $15.65 per hour (effective Jan. 1, 2021)
- Daly City: $15 per hour (effective Jan. 1, 2021)
- El Cerrito: $15.61 per hour (effective Jan. 1, 2021)
- Emeryville: $16.84 per hour (effective July 1, 2020)
- Fremont: Based on CPI for employers with 26 or more employees, $15 per hour for employers with 25 or fewer employees (effective July 1, 2021)
- Half Moon Bay: $15 per hour (effective Jan. 1, 2021)
- Hayward: $15 per hour for employers with 26 or more employees, $14 per hour for employers with 25 or fewer employees (effective Jan. 1, 2021)
- Los Altos: $15.65 per hour (effective Jan. 1, 2021)
- Los Angeles City: $15 per hour for employers with 26 or more employees, $15 per hour for employers with 25 or fewer employees (effective July 1, 2021)
- Los Angeles County: $15 per hour for employers with 26 or more employees, $14.25 per hour for employers with 25 or fewer employees (effective July 1, 2020)
- Malibu: $15 per hour for employers with 26 or more employees, $15 per hour for employers with 25 or fewer employees (effective July 1, 2021)
- Menlo Park: $15.25 per hour (effective Jan. 1, 2021)
- Milpitas: $15.40 per hour plus CPI (effective July 1, 2021)
- Mountain View: $16.30 per hour (effective Jan. 1, 2021)
- Novato: $15.24 per hour for employers with 100 or more employees, $15 per hour for employers with 26 to 99 employees, $14 per hour for employers with 25 or fewer employees (effective July 1, 2021)
- Oakland: $14.36 per hour (effective Jan. 1, 2021)
- Palo Alto: $15.65 per hour (effective Jan. 1, 2021)
- Pasadena: $15 per hour for employers with 26 or more employees, $14.25 per hour for employers with 25 or fewer employees (effective July 1, 2020)
- Petaluma: $15.20 per hour, reflecting a 1.3% COLA, for all employers regardless of size (effective Jan. 1, 2021)
- Redwood City: $15.62 per hour (effective Jan. 1, 2021)
- Richmond: $15.21 per hour (effective Jan. 1, 2021)
- San Carlos: $15.24 per hour, accounting for the annual change in CPI at a maximum of 3.5% (effective Jan. 1, 2021)
- San Diego: $14 per hour (effective Jan. 1, 2021)
- San Francisco: $16.07 per hour (effective July 1, 2020)
- San Jose: $15.45 per hour (effective Jan. 1, 2021)
- San Leandro: $15 per hour (effective July 1, 2020)
- San Mateo: $15.62 per hour (effective Jan. 1, 2021)
- Santa Clara: Effective January 1, 2021, the minimum wage in Santa Clara is $15.65 per hour.
- Santa Monica: Effective July 1, 2021, the minimum wage in Santa Monica is $15 per hour, regardless of company size.
- Santa Rosa: Effective January 1, 2021, the minimum wage in Santa Rosa is $15.20 per hour, regardless of company size.
- Sonoma: Effective January 1, 2021, the minimum wage in Sonoma is:
- $15 per hour for employers with 26 or more employees
- $14 per hour for employers with 25 or fewer employees
- South San Francisco: Effective January 1, 2021, the minimum wage in South San Francisco is $15.24 per hour.
- Sunnyvale: Effective January 1, 2021, the minimum wage in Sunnyvale is $16.30 per hour.
California Minimum Wage Exemptions
Workers who are not subject to federal minimum wage laws may be exempt from California minimum wage rules in certain cases.
Common California Minimum Wage Exemptions
- Exempted Group: Learners
- Alternate Wage Requirement: Entitled to at least 85% of the current minimum wage during their designation as learners.
- Explanation: Employees can be considered learners (regardless of age) for their first 160 days of employment if they have no prior experience related to their job duties.
- Exempted Group: Mental and/or physically disabled
- Alternate Wage Requirement:
- a. Set individually by the commission if a license is approved.
- b. Set by the commission on a facility basis.
- Explanation:
- a. Employers can request an annual special license to employ a mentally or physically disabled individual for less than minimum wage.
- b. Nonprofit employers operating sheltered work or rehabilitation facilities may request a facility license to employ mentally and physically handicapped individuals at less than minimum wage.
- Alternate Wage Requirement:
- Exempted Group: Industry or occupation exemptions
- Alternate Wage Requirement: Varies by industry or occupation.
- Explanation: Some industries and occupations have alternative minimum wages set by California to address specific challenges, such as outside salespeople.
California Posting Requirements
As of January 2021, California state law mandates additional workplace posters beyond the six federal posters. These posters must be displayed in locations easily accessible to employees and cover topics such as minimum wage, payday rules, sick leave, unemployment rights, and protections against discrimination, harassment, and wrongful termination.
Required Posters:
- Minimum Wage
- Payday Notice
- Unemployment Insurance Poster
- Unemployment Insurance/Paid Family Leave/Disability
- Discrimination and Harassment
- Safety and Health Protection on the Job
- Emergency Numbers
- Access to Medical & Exposure Records (Industry-specific)
- Rights as a Pregnant Employee (formerly “Notice A”)
- Family Care/Medical Leave (formerly “Notice B”)
- Workers’ Compensation (Injuries Caused by Work)
- Time Off to Vote
- Whistleblower Protection
- Paid Sick Leave
- Transgender Rights in the Workplace
Tipped Wage in California
Unlike most states, California does not permit tipped employees to be paid a lower base minimum wage.
Employers must pay tipped employees the same minimum wage as other nonexempt workers. For 2021, this is $14 per hour for employers with 26 or more employees and $13 per hour for employers with 25 or fewer employees.
Employers cannot use tips received by employees or a tip pool as credit toward the minimum wage. However, California does allow tip pooling to distribute tips among employees.
The tip pool is limited to those in the “chain of service,” which includes cooks, dishwashers, cashiers, managers, supervisors, bartenders, hosts, table bussers, and servers.
Tips must be distributed fairly. Many employers base distribution on the proportion of service each employee is expected to have provided, but California evaluates each case individually to determine fairness if a complaint arises.
Not all funds left by customers are considered tips. For example, both federal and California law exclude “mandatory service charges” from tips, allowing employers to keep these fees.
A 2014 IRS change may classify some of these fees as wages in certain cases. Additionally, while federal rules allow employers to reduce tips by credit card fees, California does not permit this reduction.
Overtime Wage in California
Overtime pay is mandatory in California for all covered workers, with some exceptions, such as special rules for agricultural workers.
Standards dictate how many hours in a week, hours in a day, and days in a week can be worked before overtime pay is required.
Nonexempt workers over 18, as well as 16- or 17-year-olds not required to be in school or otherwise prohibited from work, must be paid overtime.
- Any hours worked over 8, up to 12 hours in a single workday, up to 8 hours on the seventh consecutive day in a single week, or any hours over 40 in a week must be paid at 1.5 times the base wage rate.
- Any hours worked over 12 in a single workday or over 8 on the seventh consecutive day must be paid at double the base rate.
Employees on accepted alternative workweek schedules (schedules that regularly require more than 8 hours of work in a 24-hour period) may have exceptions or modifications to the standard California overtime rules.
For example, certain healthcare schedules that typically result in 10- to 12-hour days may not trigger normal overtime rules, provided double time is paid for hours worked over 12 in a day and time and a half is paid for hours over 40 in a workweek.
Full exceptions by industry and alternative schedule arrangements can be obtained from the California Department of Industrial Relations. These include workers in categories such as camp counselors, personal attendants for nonprofit organizations, ambulance drivers, extras, minors, and sheepherders. Agricultural worker overtime pay is based on separate regulations and does not always revolve around a 40-hour week but is still subject to “statutory protections.”
Child Labor Laws in California
In addition to federal requirements under the Fair Labor Standards Act (FLSA), California sets specific wage and hour limits and conditions for minors working.
In January 1985, California passed the Omnibus Child Labor Reform Act (AB 1900), updating rules on minor employment. AB 1900 applies to both citizens and non-citizens who are minors and have not graduated high school or obtained an equivalency certificate.
One notable change was that minors under 12 are barred from employment or even accompanying parents to workplaces considered hazardous for those under 16. Specific hazardous work types are restricted and banned for minors based on age.
For jobs and industries deemed suitable for minor employees, minors must obtain a work permit for the specific employer before starting work. The permit must be renewed annually.
Weekly hour restrictions and work during school sessions vary by age. Generally, California allows minors aged 14 to 17 to work while school is in session, but hours may be limited. Those aged 12 and 13 are prohibited from working while school is in session.
Minor pay is subject to normal minimum wage and overtime rules in California. Minors who have graduated high school (or obtained an equivalent certificate) or minors working certain late-night hours must be paid as though they were adults. Additionally, covered minors must be paid time and a half for all hours worked on a sixth consecutive workday.
There are special rules for minors in the entertainment industry, including younger workers. One of these additional requirements is sexual harassment prevention training and notification.
Employer Recordkeeping Requirements in California
California requires employers to maintain specific records of employee work hours, in addition to federal requirements under the FLSA, Equal Pay Act, and other federal laws.
For hourly nonexempt workers, employers should record start and stop times, including mealtime starts and stops.
Given the four-year statute of limitations on class action lawsuits over labor and wages in California, it is advisable to store these records for at least four years. Under Labor Code section 226, pay stubs must be kept for at least three years. Additionally, personnel records and files must be kept confidential and retained for at least three years after an employee’s termination, as required by Labor Code 1198.5 (effective January 1, 2013).
California Labor Law Questions & Answers
California requires overtime pay if travel time plus regular work time results in hours eligible for overtime pay. Not all travel is compensable; generally, if the employer controls the travel, it counts as work hours and toward overtime calculations. Normal commutes are not considered employer-controlled, but time spent in company shuttles or vehicles is likely considered work travel time. Examples include travel to remote meetings, moving between client locations, and waiting for company vehicle pickups.
California has specific regulations for minors working in the state, in addition to the Fair Labor Standards Act (FLSA) rules. These regulations set limits on hours per day and during what times minors can work, based on age and whether school is in session. Generally, minors aged 16 and 17 can work up to 48 hours a week, minors aged 14 and 15 can work up to 18 hours a week during school sessions and 40 hours a week when school is out, and minors aged 12 and 13 can work up to 40 hours a week only when school is out of session.
Yes, California requires more work rest breaks than the Fair Labor Standards Act (FLSA).
While the FLSA mandates breaks between five and 20 minutes, California also requires more meal and rest breaks for nonexempt workers. Specifically, California mandates a 10-minute paid rest break for every four hours worked (or the majority portion of four hours). These breaks must be paid and separate from meal breaks. Workers can skip breaks if they do so independently without manager influence.
For hours worked:
- 0 to 3 hours and 29 minutes: No break required
- 3 hours and 30 minutes to 6 hours: 1 break required
- 6 hours and 1 minute to 10 hours: 2 breaks required
- 10 hours and 1 minute to 14 hours: 3 breaks required
California also requires a minimum 30-minute off-the-clock meal break for employees working at least five hours in a day. This meal break can be waived if the employee does not work more than six hours in a day.
Employees working at least 10 hours a day are entitled to a second meal break. This second break must be allowed within the 10th hour but can be waived if the employee did not waive the first meal break and will not work more than 12 hours that day.
Employees cannot work through required meal breaks and must be allowed to leave the work premises during these breaks.
California Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.