California Appeals Court Finds No Wage Statement Violation In Combining Non-Overtime And Overtime Hours On Paystubs

A Fourth Appellate District panel ruled that government contractor, General Atomics’ wage statements did not violate California labor law because the statements showed the applicable hourly rates in effect and the corresponding number of hours worked at each rate, despite combining non-overtime and overtime hours. This outcome, while deemed a “win” for General Atomics’ and employers alike, highlights the nuances and requirements that must be considered and adhered to in California’s dynamic and complex wage-and-hour system.

The Court reasoned that including a 1.5x overtime rate in wage statements where an employee earns multiple standard hourly rates, or other compensation, would be incongruous. The panel further added that because the wage statements show both the applicable hourly rates and the total number of hours worked at each, the subject wage statements do not run afoul of California labor law.

Contact your Pearlman, Brown, and Wax legal advisor to learn more about this case and how to be advised in this regard.