This article reviews the upcoming changes to overtime in 2022. It also includes instructions for setting up overtime calculations in your Datatech Software.

Are you ready?

Now is the time to review the California Ag Overtime Laws for 2022 and software tools for overtime calculations.

The beginning of 2022 will be the last phase-in of overtime thresholds that began in 2019 for employers with 26 or more employees. 

old time clock

Employers with 26 or more employees are required to pay overtime after an employee has worked 8 hours in a day and 40 hours in a workweek. They are also required to pay double-time after an employee has worked 12 hours in a day.

Employers will need to update their Overtime Rules to adjust for the new thresholds and addition of daily double-time. Small employers (those with 25 or fewer employees) will begin a similar four-year phase-in of lower overtime thresholds.

Phase-In of Overtime Rules

Use the following chart showing the upcoming changes for both large and small employers.

The chart, provided by the CA Farm Bureau Federation, includes

1. Minimum Wage Increases

2. Maximum Regular Rate Hours (workday/week)

3. Salary Exempt Minimums

It is also a good idea to review your states FAQ’s on overtime.

In addition, you may want to review the example of a check calculation with rest & recovery and overtime from the AB 1513 FAQ’s.

How to Set Up Overtime Calculations in Your Datatech Software 

The document, “Overtime Setup & Calculation 2022,” will explain how overtime rules are set up and calculations are made in your Datatech Software.

Get Automatic Overtime Calculations

It can be hard to manually calculate and track overtime pay, which is why Datatech’s software is available to do it for you. We know that in the Ag industry, you may not be paying just one hourly rate. When employees are paid more than one hourly rate, overtime must then be calculated on a weekly average rate method (Overtime Premium). Datatech Software has options to automatically calculate both Hourly and Overtime Premium methods of overtime pay.

If you are not yet a Datatech customer and would like to learn more, please request a free consultation. We would love to hear from you!

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