California Domestic Workers Coalition

Your “Regular Rate of Pay” = Your Hourly Wage

  • You must know your “regular rate of pay” to make sure you are being paid the minimum wage and to calculate your overtime rates.
  • If your regular rate of pay is LESS than minimum wage, then you are entitled to earn minimum wage INSTEAD!
  • If you are entitled to overtime and are paid on a fixed salary, your regular salary does not include overtime wages, regardless of any agreement between you and the employer. You are still entitled to your overtime pay.

What If I Am Paid a Daily Rate?

  • If you are paid a flat daily rate, you must calculate your hourly rate to determine your “regular rate of pay”.
  • Under California Law, the daily rate needs to be divided by the total number of hours worked in a day, but not to exceed 8 hours.
  • For example:
    • If you are paid $150 per day and you work 9 hours:
      • $150 / 8 hours = $18.75 / hour
      • This regular rate of pay complies with the California minimum wage, which is $14.00 an hour or higher in some cities.
    • If you are paid $50 per day and you work 6 hours:
      • $50 / 6 hours = $8.33 / hour
      • “Your Regular Rate of Pay is $8.33 / hour? Compañera that’s below the minimum wage! That’s wage theft!”

What If I Am Paid a Monthly Salary?

  • Under California law, if you are paid a monthly salary, the salary must be converted to an hourly rate
  • For example:
    • If your monthly salary is $2,000 per month, and you work 50 hours per week
      • $2,000 per month X 12 months = $24,000 per year
      • Divide by 52 weeks (in one year) = $461.54 per week
      • Then divide by the number of weekly hours, but not to exceed 40 hours
        • $461.54 per week / 40 hours per week = $11.54 per hour. This is your regular rate of pay and it is below the minimum wage, which is wage theft.