California Employees: Everything You Need To Know About Your Pay

California is one of the most pro-employee states in the union, particularly in wage and hour matters. Although the federal Fair Labor Standards Act (FLSA) sets a national standard for wage and hour law, the FLSA is only a floor, not a ceiling. In other words, employees in every state are protected by the FLSA, and states may not diminish those rights. But states may pass laws that give workers more rights, and California has done so. 

Minimum Wage

While the national minimum wage is $7.25 per hour, California's current minimum wage is $8 per hour. California employees are covered by both the federal and state minimum wage laws. Because the state law is higher, employers have to pay that amount to California employees. Employers must follow whichever applicable law is more beneficial to the employee, whether it is local, state, or federal. 

Overtime Pay

The overtime premium -- one-and-a-half times your regular hourly rate (called "time and a half") -- must be paid for all hours worked over eight hours in any workday and over 40 hours in the workweek. Employees are entitled to double pay for hours worked over 12 in a day or over eight on the seventh consecutive day of work. 

These rules are also more protective of employees than the FLSA standards, which don't include daily overtime or any provisions for double time. Therefore, California employers are obligated to follow the state overtime laws.

Pay Periods

In California, employers must establish a regular payday and wages must be paid at least twice during each calendar month on the days designated as regular paydays.

Tips

Under the federal law, employers may pay tipped employees a lower minimum wage, as long as their wage plus their tips adds up to at least the minimum hourly wage. (This is referred to as taking a "tip credit.") The lowest wage an employer can pay a tipped employee under the FLSA is currently $2.13. 

California doesn't allow employers to take a tip credit. Tipped employees must be paid the regular minimum wage, with no deduction for tips. However, tipped employees can be required to participate in a tip pool, as long as the employer and managers don't take any portion of the tips.