If you work a lot of overtime, you may be curious about how your overtime rate is calculated. Under both the federal Fair Labor Standards Act and California law, "nonexempt" employees are entitled to an overtime premium of 1-1/2 times their regular rate of pay whenever they work more than 40 hours in a given workweek. In California, most workers are also entitled to the overtime premium when they work more than 8 hours in a single day.
A few years back, I joined my ex-girlfriend on a wonderful trip to New York, all expenses paid by her former employer. The trip was full of wonderful meals, a complimentary hotel room at the Waldorf Astoria, and a gold watch in a basket full of goodies. She was happy...until she got a tax bill from the IRS for the items.