In short, my opinion is that the company probably must pay overtime. However, that opinion is based on a severe shortage of facts.
You need to provide more details, such as your husband's job title and work description.
The second question is whether you want to do anything about this situation. Since your husband is still working at the company, keep in mind that although he is protected by the law in bringing up any workplace issues, that doesn't mean that he won't be fired, disciplined, harassed, etc. for bringing up this issue. The law only provides a penalty to the employer to discourage and punish such behavior.
You should speak with an attorney about this issue, or contact the Division of Labor Standards Enforcement.
http://www.dir.ca.gov/DLSE/dlse.html
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