A California employer pays an employee premium pay of time and one half for working on a holiday.  The employee works 12 hours on the holiday.  Normally, twelve hours in a day entitles the employee to four hours of daily overtime in California.  But since the employer already paid premium pay at time and one half, does that satisfy the overtime obligation for that day?  Or does the employer have to pay time and one half on top of the premium rate for the four overtime hours?

According to a ruling issued yesterday by a California Appellate Court in a class action case, Advanced-Tech Security Services, Inc. v. Superior Court (LASC No. BC348282), the employer can use the premium pay as a credit towards overtime, as long as the premium is at least time and one half the employee's regular rate of pay.

This is a good ruling for employers, in that it cuts off another lawsuit angle and clarifies this issue.  However, it also serves as a reminder that California attorneys are very creative when it comes to filing claims for wage hour violations.  To avoid potential problems, employers need to be sure that their wage hour policies are airtight.  

[This post does not constitute legal advice.  For advice in specific situations, seek legal counsel.]