California labor law

Straight answers, with sources.

The questions California small employers ask us most often. Every answer is checked against the state's own guidance and the Labor Code, and shows when it was last reviewed.

Informational only — not legal advice. Last reviewed 2026-08-07.

When does double-time start in California?

In California, non-exempt employees earn double their regular rate after 12 hours in a single workday, and for every hour past 8 on the seventh consecutive day of a workweek. Below that, hours over 8 in a day or 40 in a week are paid at 1.5×. California counts overtime daily, not just weekly.

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Does paying a salary make an employee exempt in California?

No. Paying a salary does not by itself make someone exempt from overtime in California. The employee must also perform exempt duties and earn at least twice the state minimum wage for full-time work — $70,304 a year as of January 1, 2026. Miss either test and overtime is owed.

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What does a missed meal break cost an employer in California?

One additional hour of pay at the employee's regular rate of compensation, for each workday a compliant meal break was not provided. A second hour is owed for rest-break violations, so one day can carry two premiums. The premium is a wage, not a penalty, which affects how and when it must be paid.

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How much paid sick leave must California employers provide?

At least 40 hours, or five days, per year — whichever is more for that employee. SB 616 raised the floor from 24 hours effective January 1, 2024. It covers nearly every employee who works 30 or more days for the same employer within a year, including part-time and temporary staff.

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Are non-compete agreements enforceable in California?

No. California voids nearly all non-compete agreements as restraints on trade, whatever the contract says and whichever state's law it names. Since 2024, employers must also notify affected current and former employees that any such clause is void, and merely requiring one can itself be a violation.

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Can earned vacation expire in California?

No. Earned vacation is a vested wage in California, so "use it or lose it" policies are unlawful and unused vacation must be paid out at the final rate when employment ends. Employers may cap further accrual once a balance reaches a reasonable ceiling, but may not take back time already earned.

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When is a final paycheck due in California?

Immediately on the last day if the employee is fired or laid off. If they quit with at least 72 hours' notice, it is due on their last day; if they quit without notice, the employer has 72 hours. Late payment can cost up to 30 days of the employee's wages as a waiting-time penalty.

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Must California employers reimburse an employee's personal cell phone?

Yes, when the phone is used for work. California requires employers to reimburse all necessary expenditures an employee incurs doing their job, and a court has held this applies to personal mobile phones even when the employee pays a flat rate and incurs no extra cost.

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What is reporting time pay in California?

When an employee reports for a scheduled shift and is sent home after working less than half of it, the employer owes half the scheduled hours — a minimum of two hours and a maximum of four — at the regular rate. It applies even when the employee did no work at all.

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What is the California minimum wage in 2026?

The California state minimum wage is $16.90 an hour for all employers as of January 1, 2026, up from $16.50. Many cities and counties set a higher local rate, and where they do, the higher rate applies. Fast-food and some health-care employers are subject to separate, higher minimums.

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How is the seventh consecutive day of work paid in California?

When an employee works all seven days of one workweek, the seventh day is paid at 1.5× the regular rate for the first 8 hours and 2× for anything beyond 8. This is separate from daily overtime, so a long seventh day can reach double-time far sooner than an ordinary one.

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These rules are built into WeERM

Daily overtime, double-time, the seventh-day premium, and meal-break flags are computed as your team clocks in — not reconstructed at payroll. From $3 per employee.

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