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Executive overtime pay California

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  • Executive overtime pay California

    May a CA executive be paid, in addition to his salary, an amount based on his time working overtime?

  • #2
    May he? Certainly. Doing so might or might not affect his exempt status, depending on the way it is handled and his exact job duties. But the law does not prohibit an employer from giving their executives bonus pay for extra hours worked.

    Must he? No. If he is truly exempt, nothing beyond his regular salary is required by law, regardless of the length of his work week.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      Thank you

      Thank you. Am glad we can recognize extra dedication.

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      • #4
        I would suggest that you do it in the form of a flat bonus rather than hour by hour overtime; you are less likely to run afoul of the exemption regs that way.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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        • #5
          Agree, a bonus not tied to hrs. worked or you could give a gift certificate or extra paid time off both of which I understand some employers do.
          Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

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          • #6
            If you go with the extra time off option, which I have used in the past, don't do it hour by hour for the same reason indicated above.
            The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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            • #7
              The way we handled this was called "extended work week". It was not for putting in a mere 8 hours or so extra a week. It was for people really doing "above and beyond the call of duty" work -- but was always totally required for programs to remain on schedule.

              On government contracts, this can even be submitted to the contracting officer for approval. With approval, the government pays the additional hours, regular time, no time and a half.

              We almost always did it based on additional hours billed or allocated to overhead. I do remember a few times when we handled it as a bonus of one sort or another, but for us, that was more complicated than just paying for the hours as part of the "extended work week". The "extended work week" had to be approved in advance - at a senior executive level, countersigned by Contracts.
              Please post questions on the forum rather than sending me a private message or email. That way others who have similar issues have access to the discussion.

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