Is this legal advice?

No. HireStates is compliance software, not a law firm. We help you understand the rules and generate document templates - but we strongly recommend reviewing final documents with a licensed employment attorney, especially for your first hire.

How current is the compliance data?

Our compliance database covers current California and New York state law and all major city ordinances. We review and update the data as legislation changes to keep your documents accurate.

Which states and cities are covered?

California: All 25 major jurisdictions including the state baseline plus San Francisco, Los Angeles, San Jose, Oakland, San Diego, and 20+ more cities. New York: State law plus NYC and other major jurisdictions. We are actively expanding city coverage for New York.

Is our company data stored securely? We're subject to GDPR.

Yes. HireStates is hosted in the EU (Frankfurt). We are GDPR-compliant by design, do not sell data to third parties, and offer a Data Processing Agreement (DPA) on Pro and Enterprise plans. Your documents and company data never leave EU infrastructure.

Do we still need an employment lawyer?

For standard hires, many customers use HireStates documents as-is after a one-time legal review. For complex situations - executive contracts, equity compensation, or layoffs - we recommend involving counsel. HireStates reduces the hours your lawyer needs to spend, cutting legal costs significantly.

Can we customize the generated documents?

Yes. All documents are fully editable after generation. Pro and Enterprise plans let you save custom clauses, upload company policies, and create branded templates. You own every document you generate.

California Law

California Overtime Rules: Daily and Weekly Requirements Explained

Kevin Bednar

February 22, 20262 min read

Daily Overtime: California Is Different

Unlike most US states (and most countries), California has daily overtime requirements. Non-exempt employees earn 1.5x their regular rate for hours worked beyond 8 in a single day. Hours beyond 12 in a day earn double time (2x). This is in addition to the standard weekly overtime of 1.5x after 40 hours. Working 7 consecutive days also triggers special overtime rates.

Calculating the Regular Rate of Pay

The regular rate is not simply the hourly wage. It includes base hourly pay, non-discretionary bonuses, commissions, piece-rate earnings, and the value of non-cash compensation. Only discretionary bonuses, gifts, and expense reimbursements are excluded. Getting this calculation wrong is one of the most common payroll violations in California and frequently leads to class-action lawsuits.

Exempt Employees: Who Qualifies?

To be exempt from overtime in California, an employee must meet three criteria. First, they must earn at least twice the state minimum wage on a salary basis ($68,640 annually in 2026). Second, they must perform exempt duties - executive, administrative, or professional work - for more than 50% of their working time. Third, they must regularly exercise independent judgment. The 50% duties test is stricter than the federal standard and catches many employers off guard.

Practical Tips for Employers

Track time carefully for all non-exempt employees, including remote workers. Use a reliable timekeeping system that captures daily hours, not just weekly totals. When in doubt about exempt status, classify the employee as non-exempt - the penalties for misclassification far exceed the cost of paying overtime. Review job descriptions annually to ensure exempt employees still meet the duties test.

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