What is the difference between Overtime Pay and Overtime Premium?
Total Overtime Pay is the entire dollar amount earned for working overtime hours at the overtime rate (e.g. 8 hours at 1.5x of $20/hr = $30/hr = $240).
Overtime Premium is the extra cash bonus earned over and above what you would have received at your standard base rate (e.g. 8 hours at 0.5x of $20/hr = $10/hr = $80). The base component ($160) plus the premium ($80) equals total overtime pay ($240).
How does California Daily Overtime work?
Under California Labor Code § 510:
- Work in excess of 8 hours up to 12 hours in any workday is paid at 1.5x base rate.
- Work in excess of 12 hours in any workday is paid at 2.0x (double time).
- The first 8 hours worked on the seventh consecutive day of work in a workweek is paid at 1.5x, and work past 8 hours is paid at 2.0x.
What is the Healthcare 8/80 Overtime Rule?
Under FLSA section 7(j), hospitals and residential care establishments may adopt an alternative "8 and 80" overtime system. Under this agreement, overtime is paid at 1.5x for:
- Any hours worked over 8 hours in any workday, AND
- Any hours worked over 80 hours in a 14-day work period.
What does Non-Pyramiding mean?
Non-pyramiding prevents double compensation for the same hours worked. Under most labor agreements and the FLSA, hours that qualify for daily overtime cannot be counted again toward weekly overtime, ensuring workers are paid fairly without conflicting cumulative multipliers.