Wage & Hour

California Wage & Hour Laws: What You Need to Know

A comprehensive guide to overtime pay, meal breaks, and rest periods under California employment law.

Published December 10, 202415 min read

California has some of the strongest wage and hour protections in the United States. These laws are designed to ensure workers receive fair compensation for their time and labor, including proper overtime pay, required breaks, and minimum wage protections that often exceed federal standards.

Unfortunately, wage and hour violations are among the most common employment law violations in California. Many workers are unaware of their rights or don't realize when their employer is breaking the law. This comprehensive guide will help you understand your rights and recognize when you may have a claim.

California Wage & Hour Quick Facts

$16.50
Minimum Wage (2025)
1.5x
Overtime Rate
8 hrs
Daily Overtime Threshold

California Minimum Wage Laws

California's minimum wage is significantly higher than the federal minimum wage and increases annually. The state also allows local jurisdictions to set even higher minimum wages.

2025 California Minimum Wage Rates

Statewide Minimum Wage:$16.50/hour
Fast Food Workers (AB 1228):$20.00/hour
Healthcare Workers (SB 525):$25.00/hour (phased)

Local Minimum Wages

Many California cities and counties have minimum wages higher than the state minimum. Some notable examples include:

High-Wage Cities

  • • Los Angeles: $17.28/hour
  • • San Francisco: $19.18/hour
  • • Berkeley: $18.67/hour
  • • West Hollywood: $19.65/hour

Important Note

Always check your local minimum wage laws, as you're entitled to the highest applicable rate (federal, state, or local).

⚠️ Tips and Minimum Wage

Unlike federal law, California does not allow tip credits. All employees must receive the full minimum wage before tips, regardless of how much they earn in tips.

Overtime Pay Requirements

California's overtime laws are more generous than federal law, providing multiple ways for employees to earn overtime pay.

California Overtime Rules

Time-and-a-Half (1.5x regular rate):

  • • More than 8 hours in a single workday
  • • More than 40 hours in a workweek
  • • First 8 hours on the 7th consecutive day of work

Double-Time (2x regular rate):

  • • More than 12 hours in a single workday
  • • More than 8 hours on the 7th consecutive day of work

Calculating Your Regular Rate

Your "regular rate" for overtime calculations includes more than just your hourly wage:

Included in Regular Rate

  • • Hourly wages
  • • Salary (divided by hours worked)
  • • Commissions
  • • Non-discretionary bonuses
  • • Shift differentials
  • • Piece-rate pay

Not Included in Regular Rate

  • • Discretionary bonuses
  • • Gifts
  • • Vacation pay
  • • Holiday pay
  • • Sick leave
  • • Expense reimbursements

Example: Daily Overtime Calculation

Sarah earns $20/hour and works 10 hours in one day:

  • • First 8 hours: 8 × $20 = $160
  • • Next 2 hours (overtime): 2 × $30 = $60
  • Total daily pay: $220

Meal Break Requirements

California requires employers to provide meal breaks to non-exempt employees, and these breaks must be uninterrupted and duty-free.

Meal Break Rules

First Meal Break:

  • • Required after 5 hours of work
  • • Must be at least 30 minutes long
  • • Must be provided before the end of the 5th hour
  • • Employee must be relieved of all duties

Second Meal Break:

  • • Required after 10 hours of work
  • • Must be at least 30 minutes long
  • • Must be provided before the end of the 10th hour
  • • Also must be duty-free

Meal Break Violations & Penalties

When employers violate meal break requirements, they owe additional compensation:

Meal Break Premium Pay

For each workday that a meal break is not provided, the employee is entitled to one additional hour of pay at their regular rate.

Example:

If you earn $25/hour and miss your meal break, your employer owes you an additional $25 for that day.

Common Meal Break Violations

  • No meal break provided: Working more than 5 hours without any meal break
  • Late meal breaks: Meal break provided after the 5th or 10th hour
  • Short meal breaks: Meal breaks shorter than 30 minutes
  • Working meal breaks: Being required to work or be "on call" during meal breaks
  • Interrupted meal breaks: Being called back to work during meal breaks

⚠️ Waiving Meal Breaks

You can waive your first meal break if you work 6 hours or less, and your second meal break if you work 12 hours or less (and didn't waive the first). The waiver must be mutual agreement, not employer pressure.

Rest Period Requirements

In addition to meal breaks, California requires paid rest periods for non-exempt employees.

Rest Period Rules

  • 10-minute paid break for every 4 hours worked (or major fraction thereof)
  • Preferably in the middle of each work period
  • Paid time - you must be compensated for rest periods
  • Uninterrupted time - you should be free from work duties
  • On-site location - you don't have to leave the premises

Rest Period Schedule Examples

6-Hour Shift

  • • 1 rest period (10 minutes)
  • • Typically around hour 3

8-Hour Shift

  • • 2 rest periods (10 minutes each)
  • • Typically around hours 2 and 6

Rest Period Premium Pay

Like meal breaks, if your employer fails to provide required rest periods, you're entitled to one hour of pay at your regular rate for each day a rest period was missed.

Exempt vs. Non-Exempt Employees

Not all employees are entitled to overtime pay and break requirements. Understanding the difference between exempt and non-exempt status is crucial.

Non-Exempt Employees

Entitled to:

  • • Overtime pay
  • • Meal breaks
  • • Rest periods
  • • Minimum wage
  • • Premium pay for violations

Exempt Employees

Generally not entitled to:

  • • Overtime pay
  • • Meal break premium pay
  • • Rest period premium pay
  • • (But still get minimum wage)

Common Exempt Categories

To be exempt, employees must meet specific salary and duty requirements:

Executive Exemption

  • • Salary of at least $68,640/year (2025)
  • • Manages enterprise or department
  • • Supervises 2+ employees
  • • Has hiring/firing authority

Professional Exemption

  • • Salary of at least $68,640/year (2025)
  • • Work requires advanced knowledge
  • • Knowledge acquired through prolonged study
  • • Examples: doctors, lawyers, engineers

Administrative Exemption

  • • Salary of at least $68,640/year (2025)
  • • Office/non-manual work
  • • Related to management or business operations
  • • Exercises discretion and judgment

⚠️ Misclassification is Common

Many employers incorrectly classify employees as exempt to avoid paying overtime. Just having a salary or a "manager" title doesn't automatically make you exempt. Both salary and duty requirements must be met.

Common Wage & Hour Violations

Wage and hour violations are unfortunately common in California. Here are the most frequent violations we see:

Off-the-Clock Work

Being required to work without pay, including:

  • • Working before clocking in or after clocking out
  • • Answering emails or calls during unpaid time
  • • Mandatory unpaid training or meetings
  • • Working through meal breaks without pay

Overtime Violations

Failure to pay proper overtime rates:

  • • Not paying time-and-a-half after 8 hours/day
  • • Not paying double-time after 12 hours/day
  • • Averaging hours across pay periods
  • • Misclassifying employees as exempt

Break Violations

Meal and rest break violations:

  • • No meal breaks provided
  • • Late or short meal breaks
  • • Working during meal breaks
  • • Skipped or interrupted rest periods

Payroll Deductions

Illegal deductions from wages:

  • • Uniforms, tools, or equipment costs
  • • Cash register shortages
  • • Customer walkouts or bad checks
  • • Business expenses

Penalties and Damages

California provides significant penalties for wage and hour violations to deter employers from breaking the law:

Back Wages & Damages

  • • Unpaid wages owed
  • • Unpaid overtime
  • • Meal/rest break premiums
  • • Interest on unpaid wages
  • • Liquidated damages (up to 100%)

Additional Penalties

  • • Waiting time penalties
  • • Payroll record penalties
  • • PAGA penalties
  • • Attorney's fees
  • • Court costs

Waiting Time Penalties

If your employer doesn't pay your final wages on time when you quit or are terminated:

  • • Up to 30 days of additional pay
  • • One day's pay for each day wages are late
  • • Based on your average daily wage

PAGA Claims

Under California's Private Attorneys General Act (PAGA), employees can sue for civil penalties on behalf of the state, with penalties of $100-$200 per pay period for each violation affecting each employee.

How to File a Wage Claim

If you believe your employer has violated wage and hour laws, you have several options for recovery:

Option 1: California Labor Commissioner

  • • File a wage claim with the Division of Labor Standards Enforcement
  • • Free process, no attorney required
  • • Can recover unpaid wages, overtime, and penalties
  • • Limited to individual claims (not class actions)
  • • 3-year statute of limitations for most claims

Option 2: Civil Lawsuit

  • • File a lawsuit in state or federal court
  • • Can seek broader damages and penalties
  • • Allows for class action lawsuits
  • • Can include PAGA claims
  • • May recover attorney's fees if successful

What You'll Need

  • • Pay stubs and wage statements
  • • Time records (if available)
  • • Employment contract or handbook
  • • Records of hours worked
  • • Documentation of violations
  • • Witness information

⚠️ Keep Detailed Records

Start keeping your own records of hours worked, breaks taken (or missed), and any wage violations. Your employer is required to keep accurate records, but having your own documentation strengthens your case.

Protecting Your Wage Rights

California's wage and hour laws provide strong protections for workers, but only if you know your rights and take action when they're violated. Don't let employers take advantage of you—you've earned every dollar you're owed.

If you suspect your employer is violating wage and hour laws, document everything and consider consulting with an employment attorney. Many wage and hour cases can be pursued on a contingency fee basis, meaning you don't pay attorney's fees unless you recover money.

Remember, wage and hour violations often affect multiple employees. By standing up for your rights, you may be helping your coworkers get the compensation they deserve as well.

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