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Tuesday, April 28, 2026

Wage and Hour Compliance: Overtime and Regular Rate | Perkins ... - JD Supra

This blog series addresses common employment-related issues for cannabis industry professionals.

This post addresses overtime rate requirements that manufacturers and retailers of cannabis products should consider to ensure compliance with applicable state and federal law.

In addition to ensuring that employee time is accurately recorded, employers should be mindful of the applicable overtime requirements and the rate at which overtime must be paid under state and federal law. For example, California law generally requires employers to pay nonexempt employees an overtime rate of 1.5 times the employees’ regular rate after eight hours in a single workday, 40 hours in a single workweek, and for time worked on the seventh consecutive workday in a workweek. California law also generally requires employers to pay double time to nonexempt employees for all hours worked in excess of 12 hours in any workday and for all hours worked in excess of eight on the seventh consecutive day of work in a workweek.

While calculating overtime should be a relatively simple process with respect to individuals who work in a single role and at a set schedule each week, it can become more burdensome with respect to employees who: (1) work in dual roles across the operation, (2) work during shifts that span multiple days, or (3) are paid at multiple pay rates during the applicable period—including due to receipt of bonuses or commissions. Actively monitoring payroll practices can enable employers...



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