CHANGES IN CALIFORNIA'S OVERTIME LAWS BENEFIT EMPLOYEES

In July, Gov. Gray Davis signed AB60, the "Eight-Hour Day Restoration and Workplace Flexibility Act of 1999," into law. The Act, which took effect on January 1, 2000, mandates that nonexempt California employees be paid overtime for any work performed in excess of eight hours in any given work day, regardless of the total hours the employee works during the week.

The Act also contains many other provisions which alter existing California wage and hour laws. In order to ensure full compliance with the Act, employers are advised to review the entire act and consult with their labor and employment law counsel. Among other things, Labor Code § 510(a), as revised, provides that nonexempt employees must be paid overtime in the following situations:

- For work performed in excess of 8 hours in any one work day;

- For work performed in excess of 40 hours in any one work week; and

- For work performed on the 7^th day, when the employee works all 7 days.

Employees must be paid at a rate of no less than 1½ times their regular rate of pay for all work performed between 8 and 12 hours in any given work day and for the first 8 hours worked on the 7^th day of any work week. Any work in excess of 12 hours in one day and any work over 8 hours on any 7^th day of a work week must be paid at a rate of at least twice the employee's regular rate of pay.

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