New California Overtime Rate in 2023 for Agricultural Employees Working for Employers who Employ 25 or Fewer Employees
Oakland - California’s overtime rate for agricultural employees working for employers who employ 25 or fewer employees will change starting January 1, 2023. Employers with 25 or fewer employees will be required to pay overtime for all hours after an agricultural employee works over nine hours in a workday or over 50 hours in a workweek.
In 2016, the Legislature passed Assembly Bill 1066, known as the “Phase-In Overtime for Agricultural Workers Act.” The law provides overtime pay for all agricultural employees, with requirements gradually phased-in so that overtime protections for all agricultural workers will ultimately match those guaranteed to non-agricultural employees. For agricultural employees working for employers who employ 26 or more employees, this matches with generally applicable overtime requirements that took effect on January 1, 2022, with those workers entitled to overtime compensation for all hours worked in excess of eight hours in a workday or 40 hours in a workweek.
The new requirements that take effect on January 1, 2023 for agricultural employees working for employers who employ 25 or fewer employees – overtime pay for all work in excess of 9 hours in one day or 50 hours in one week – bring these workers closer to the end-goal of the phase-in. The chart below provides more details about the phase-in.
Schedule for Changes to Daily and Weekly Hours After Which Agricultural Workers Receive Overtime Pay |
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Effective date for employers with 26 or more employees: |
Effective date for employers with 25 or fewer employees: |
Overtime (1.5x regular rate of pay) required after the following hours per day/hour per workweek: |
Jan. 1, 2019 |
Jan. 1, 2022 |
9.5 / 55 |
Jan. 1, 2020 |
Jan. 1, 2023 |
9 / 50 |
|---|---|---|
Jan. 1, 2021 |
Jan. 1, 2024 |
8.5 / 45 |
Jan. 1, 2022* |
Jan. 1, 2025* |
8 / 40 |
*Double the regular rate of pay required after 12 hours in a workday. |
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Agricultural employees are also generally entitled to time and one-half pay for the first eight hours worked on the seventh consecutive day of work and double-time pay for all work performed in excess of eight hours on the seventh consecutive day of work. These protections apply regardless of employer size.
Non-agricultural employees employed by businesses that also employ agricultural employees are entitled to overtime after 8 hours in a workday or after 40 regular hours in a workweek, in addition to double time under the applicable wage order.
The Department of Industrial Relations Division of Labor Standards Enforcement, also known as the California Labor Commissioner’s Office, promotes economic justice through robust enforcement of labor laws. By combating wage theft, protecting workers from retaliation, and educating the public, the Labor Commissioner’s Office puts earned wages into workers’ pockets and helps level the playing field for law-abiding employers.
The Labor Commissioner’s Office in 2020 launched an interdisciplinary outreach campaign, “Reaching Every Californian.” The campaign amplifies basic protections and builds pathways to affected populations so workers and employers understand legal protections, obligations and the Labor Commissioner’s enforcement procedures. Californians can follow the Labor Commissioner on Facebook and Twitter.
Media Contact: Communications@dir.ca.gov, (510) 286-1161
Employers with Questions on Requirements May Contact: MakeItFair@dir.ca.gov