Hello and thank you for entrusting me to assist you. My name is XXXXX XXXXX X will do everything I can to answer your question. Employees in California can be paid a flat "daily rate," provided such rate when divided by the number of hours worked exceeds minimum wage ($8/hr).Although daily rate pay is permissible, such flat rates cannot take into account compensation for anything more than a standard 8 hour work day. Overtime must be paid for anything over 8 hours a day or 40 in a week (even if the employee agrees that the flat rate compensates for expected overtime) calculated on the basis of the employee's "hourly rate," which is determined by taking their weekly pay and dividing by 40.Labor Code 515 was actually amended in January of this year so as to expressly prohibit flat daily rate pay agreements that take into account overtime, even if the employee agrees to it, so it's interesting that you ask this question. You can find the State Legislature's bill amending the law here: http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml;jsessionid=53cf63b3170e615a4e06d4289d98?bill_id=201120120AB2103Please do not hesitate to let me know if you have any questions or concerns regarding the above and I will be more than happy to assist you further.If you do not require any further assistance, please be so kind as to provide a positive rating of my service so that I may receive credit for assisting you. Very best wishes and kindest regards.
Thank you for your answer to this question I just had the question come up again and want to clarify.
So if an employee agrees to work a 10 hour day at a flat rate, this flat rate really only includes the first 8 hours (with the remaining 2 having to be paid at an OT rate)?
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).