Defining hours worked for overtime calculations: California vs federal law

California employers understand that their state laws often differ from federal laws. One of the prime examples of this is in overtime pay calculations. California law differs in many ways, not the least of which is when overtime is due and how the “hours worked” are calculated for this purpose.

“In order to properly compute hours worked, we need to have an understanding with respect to how federal and state law define what is ‘hours worked’. And how, maybe particularly for those of us in California, how California law is unique in its definition of what constitutes hours worked.” Mark Jacobs explained in a recent CER webinar.

Defining hours worked for overtime calculations: California vs federal law

What constitutes hours worked? In other words, what time must be compensated and what time must be counted when determining overtime hours?

“The federal regulations define hours worked as all time during which an employee is required to be on duty or to be on the employer’s premises or at a prescribed workplace, and all time during which an employee is suffered or permitted to work.” Jacobs explained.

The California Wage Orders define “hours worked” as the time during which an employee is subject to the control of an employer, and includes all the time the employee is suffered or permitted to work, whether or not required to do so.

Under California’s definition of “hours worked,” employees who are subject to the control of their employer may be found to be engaged in compensable time despite the fact that they are not “suffered or permitted to work” during that time. This additional element (control) is not mirrored in the federal regulations.

“Practically speaking, the difference between how California defines hours worked and federal law is going to show up in travel time, standby time, maybe some sleeping time issues, and on-call time.” Jacobs advised.

Understanding this difference may be the key to California employers not leaving out time that should be compensated.

The above information is excerpted from the webinar “Calculating Overtime in California: How to Avoid Computational Errors and Master Your Wage and Hour Obligations.” To register for a future webinar, visit CER webinars.

Attorney Mark Jacobs is a partner in the Irvine office of Fisher & Phillips LLP. His practice is focused on defending employment-related lawsuits and administrative complaints on a variety of issues, including harassment, retaliation, and discrimination.