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HOW TO CALCULATE THE REGULAR RATE OF PAY IN CALIFORNIA?

When calculating overtime pay in California, you must use the employee’s “regular rate” of pay, not the normal hourly amount.

The regular rate is not simply an employee’s normal hourly amount. The regular rate is a term used to mean the employee’s actual rate of pay once all hourly earnings plus many other types of compensation are considered.

The regular rate must include nearly all forms of pay received by that employee.

Only hours worked at straight-time apply to the weekly 40-hour limit. This prevents the “pyramiding” of overtime, where an employee earns overtime on top of overtime already paid.

David Payab, Esq. from The Law Offices of Payab & Associates can be reached @ (818) 918-5522 or by visiting http://payablaw.com/

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  • Over 20 years of legal experience
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  • Tens of Millions of dollars recovered for our clients
  • No fees or costs unless we recover money for you
  • We speak Spanish

Client Testimonials

  • The Law Office of Payab & Associates Thank you from the bottom of my heart.
  • The Law Office of Payab & Associates Going with David for help was the best thing I could have done.
  • The Law Office of Payab & Associates I highly recommend Payab and Associates.
  • The Law Office of Payab & Associates There are no words to express my appreciation.
  • The Law Office of Payab & Associates I felt well represented with Mr. Payab as my attorney.
  • The Law Office of Payab & Associates It was really a pleasure having him as my attorney and I greatly recommend him.
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