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.
