California and federal law require an employer to pay an employee for any work that is "suffered or permitted" by an employer. This means that if an employer knows or should know an employee is working, that time worked is compensable. For instance, if an employee tells you that she is ending her 8-hour day at 5:00 p.m., but then tells you that she'll continue working on a project for you past that time until 6:00 p.m., you know (or at least should know) that she's working that extra hour. Because you do, that hour is compensable as one hour of overtime. In your set of facts, you appear to know that the employee is working "voluntarily." However you may to characterize the nature of the work the employee is performing, you must pay that employee for the "voluntary" work performed. Please also note that overtime pay must be made to the employee no later than the next pay period in which it is earned.
Answered on Oct 28th, 2014 at 7:04 PM