HR & wages / rate file Source / California law

Public tool file

CA Regular Rate of Pay Calculator

Regular rate of pay is the average of included compensation for the workweek, not just the base wage. Add bonuses and other pay types, then compute OT, DT, and break premiums from the correct rate.

Workspace

Enter the facts, then review the report.

Informational only. Estimates depend on your inputs and cited case frameworks; they are not legal advice for a specific payroll.

Hours & pay components

Regular rate of pay is not the same as the base hourly wage. Under California law, it is the average of almost all non-excludable compensation earned in the workweek, divided by total hours worked.

Overtime (1.5×), double-time (2.0×), and meal/rest premiums must be paid from this rate, not the sticker wage alone. Non-discretionary bonuses, shift differentials, and similar pay usually raise the regular rate. Flat-sum bonuses follow a different OT premium rule (Alvarado v. Dart).

Other pay types

Add any other non-discretionary pay that belongs in the rate (shift differential, commission, attendance bonus, allowance, and similar). Name it and enter the amount for the workweek. These amounts are included in the regular rate and divided by total hours worked.

Rate & premium report

Enter hours and pay components to compute the California regular rate, OT/DT rates, and break premiums. The regular rate is total included pay ÷ total hours worked.

Clarifications

Common questions

What is regular rate of pay?

It is the average hourly rate used to calculate overtime, double-time, and meal/rest premiums in California. Formula: total non-excludable compensation for the workweek ÷ total hours worked. It is usually higher than the base hourly wage when bonuses or other pay are included.

What pay belongs in the regular rate?

Non-discretionary bonuses, commissions, shift differentials, and most allowances that function as wages. Production bonuses are divided by all hours worked (Marin v. Costco). Flat-sum bonuses still raise the rate, but their OT premium uses straight-time hours only (Alvarado v. Dart).

What pay is usually excluded?

Truly discretionary bonuses, bona fide expense reimbursements, gifts, and the overtime premium itself. When in doubt, add the amount as an other pay type and confirm with counsel or your payroll advisor.

Why does the regular rate matter for PAGA?

Paying OT or break premiums from the base wage instead of the regular rate underpays employees. That shortfall can become wage claims and PAGA exposure across the workforce.

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