Does PTO (paid time off) count towards overtime?
No. Overtime is calculated based on hours actually worked. Paid time off for holidays, vacations, sick days, etc. does not count as hours worked for the purposes of determining overtime because no work was performed.
Q. Last week I worked Monday, Tuesday, Wednesday, Thursday and Saturday, eight hours each day. I was out ill all day Friday. For the workweek I was paid 48 hours at my regular hourly rate. Am I entitled to eight hours of overtime pay?
A. No, you are not entitled to any overtime pay. Overtime is calculated based on hours actually worked, and you worked only 40 hours during the workweek. Another example of where you get paid your regular wages but the time is not counted towards overtime is if you get paid for a holiday but do not work that day. In such a case, the time upon which the holiday pay is based does not count as hours worked for purposes of determining overtime because no work was performed.
Will overtime get double counted if the work was over the 8 hours/day limit, but also over the 40 hour / week limit?
No. Overtime will only be counted once, and any work counted as daily overtime will not count towards the weekly overtime limit.
California overtime law explicitly provides that overtime pay should not be duplicated or “pyramided” under the daily and weekly overtime provisions. To avoid pyramiding or duplication of overtime pay for the same hours of work, the Division of Labor Standards Enforcement and the Wage and Hour Division provide that the employee must be paid overtime for all hours in the workweek in excess of the applicable daily maximum or in excess of the applicable weekly maximum, whichever the number of hours is greater. Basically, there is no “pyramiding” of separate forms of overtime pay for the same hours worked. Once an hour worked is paid at the applicable daily overtime rate, that same hour cannot be used in the computation of forty hours for the purposes of weekly overtime pay. – See more at: http://callaborlawblog.com/common-california-labor-code-violations/failure-to-pay-overtime/calculate-overtime-daily-weekly-overtime-hours-worked-week/#sthash.1L2AJ5Q4.dpuf