California Regular Rate of Pay Calculator
Calculation Results
Regular Rate of Pay (RRP):
$0.00
OT Hourly Rate (1.5x):
$0.00
Double Time Rate (2.0x):
$0.00
Total Gross Weekly Pay:
$0.00
Understanding Regular Rate of Pay in California
In California, "Regular Rate of Pay" is not just your base hourly wage. It is a specific legal calculation used to determine how much an employee should be paid for overtime and double time hours. According to the California Division of Labor Standards Enforcement (DLSE), the regular rate includes almost all forms of compensation, such as non-discretionary bonuses, commissions, and shift differentials.
How to Calculate RRP
The basic formula for California's Regular Rate of Pay is:
The "Alvarado" Ruling for Flat-Sum Bonuses
California law (following the Alvarado v. Dart Container Corp case) requires a different calculation for flat-sum bonuses (e.g., a $50 bonus for working a weekend). Unlike production bonuses, flat-sum bonuses are divided only by regular hours worked, not total hours, which results in a higher overtime rate for the worker.
Practical Example
Imagine an employee with the following stats:
- Base Rate: $20.00/hour
- Hours: 45 total (40 regular, 5 overtime)
- Production Bonus: $100.00
Step 1: Total Base Pay. $20 x 45 hours = $900.00
Step 2: Add Bonus. $900 + $100 = $1,000.00 total compensation.
Step 3: Divide by Total Hours. $1,000 / 45 = $22.22 (Regular Rate).
Step 4: Overtime Premium. The overtime rate is $22.22 x 1.5 = $33.33/hr.
What is Excluded?
Only a few items are excluded from the RRP calculation, including:
- Discretionary gifts (like a holiday bonus not tied to performance).
- Reimbursements for business expenses.
- Payments for time not worked (vacation, sick leave, PTO).