Alternative Workweek Instead of Overtime

Increasingly, employers seeking to avoid the costs of paying overtime decide to institute alternative workweeks, which are generally four, 10-hour work day per week.

However, in California, an employer cannot unilaterally implement an alternative workweek to avoid paying overtime. Specific procedures and conditions must be followed, including:

• The employer must propose the alternative workweek in writing and the written proposal must fully disclose that the employees will be giving up certain overtime rights
• The alternative workweek must be approved in a secret ballot election by at least two-thirds of the "affected employees," generally employees who do similar work
• The alternative workweek may not require more than 10 hours of work per day and no more than 40 hours in a workweek
• Any time worked between 10 and 12 hours during the alternative workweek must be paid at one-and-a-half (1.5x) times the employees' regular rate of pay
• Any work performed after 12 hours must be paid at twice (2x) the employees' regular rate of pay.
• An employer cannot reduce an employee's rate of pay as the result of establishing or rejecting an alternative workweek schedule.