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Contract engineer in CA: if I receive overtime does the employer need to compensate at 1.5xrate?

I was hired by a contract house to provide engineering support to a startup. The contract I signed indicates a yearly salary based on a 40hr/week schedule. I get vacation days and holiday pay as part of my compensation package. I submit hours each week to my contract house and, if I am approved to work OT, I am compensated at straight time. California has some rules regarding overtime rates but they also make mention of “exempt employees”. These are people who do not qualify for OT for various reasons. I’m trying to understand if I can be non-exempt by receiving OT, and at the same time also be exempt from receiving it at 1.5x the hourly rate. I thought about reaching out to a labor lawyer but I’d like to see if anyone has had a similar experience.


I was hired by a contract house to provide engineering support to a startup. The contract I signed indicates a yearly salary based on a 40hr/week schedule. I get vacation days and holiday pay as part of my compensation package.
I submit hours each week to my contract house and, if I am approved to work OT, I am compensated at straight time.
California has some rules regarding overtime rates but they also make mention of “exempt employees”. These are people who do not qualify for OT for various reasons.
I’m trying to understand if I can be non-exempt by receiving OT, and at the same time also be exempt from receiving it at 1.5x the hourly rate. I thought about reaching out to a labor lawyer but I’d like to see if anyone has had a similar experience.

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