1. Overtime: Daily vs. Weekly Thresholds
Under the federal Fair Labor Standards Act (FLSA), non-exempt employees must receive 1.5 times their regular rate for any hours worked beyond 40 in a single standard workweek.
However, states with stronger worker protections enact daily overtime rules. Under California Labor Code § 510:
- Any work exceeding 8 hours in a single workday must be paid at 1.5× the regular rate.
- Any work exceeding 12 hours in a single workday must be paid at double-time (2.0×).
- The first 8 hours on the 7th consecutive day of work in a workweek are paid at 1.5×, and hours over 8 on that 7th day are paid at 2.0×.
2. Final Paycheck Deadlines & Waiting-Time Rules
When an employment relationship ends, state labor codes establish mandatory timeframes for the delivery of final wages. In California:
- Discharged/Laid Off: All earned wages and accrued PTO are due immediately at the time and place of termination (Cal. Lab. Code § 201).
- Resignation with 72 Hours Notice: Final wages are due on the employee's final day of work (Cal. Lab. Code § 202).
- Resignation without Notice: Final wages must be made available within 72 hours (Cal. Lab. Code § 202).
- Waiting-Time Penalties: Under Cal. Lab. Code § 203, if an employer willfully fails to pay on time, penalty wages continue to accrue at the employee's regular daily rate for each day delayed, up to a statutory maximum of 30 days.
3. Accrued Vacation & PTO Non-Forfeiture
In jurisdictions like California, earned vacation and PTO are classified as vested cash compensation under Cal. Lab. Code § 227.3.
"Use-it-or-lose-it" policies that forfeit earned vacation time at the end of a calendar year are legally void. Any unused accrued PTO must be disbursed as cash at the employee's final rate of pay upon separation.
Explore State-Specific Wage Engines
Calculate your estimated take-home pay and view detailed statutory tables for your jurisdiction: