Overtime laws exist at the federal, state, and local levels. Understanding when and how they apply to your business and employees is crucial to avoiding wage theft investigations and penalties. In this article, we look at the overtime laws by state and where you can find further information.
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Overtime is often inevitable, and generally speaking, employees can’t refuse to work a few hours beyond the standard workweek. But when they do, you must comply with the relevant overtime laws.
Understanding your obligations regarding overtime helps you budget for it accordingly, avoid any unexpected payroll costs, and prevent costly legal issues. For instance, by not correctly paying employees for overtime work, you might be found guilty of committing wage theft. You could be ordered to pay employees back pay, damages, and civil penalties and may even face criminal prosecution.
Navigating overtime laws in the United States can be confusing and even frustrating. That’s why we’re here to help. This article explores overtime rules at the federal level and for each state—including states with daily overtime—to help you understand your obligations.
Key Takeaways
- The Fair Labor Standards Act (FLSA) is a federal law on overtime. It requires certain employers to pay non-exempt employees 1.5 times their standard pay rate for any time worked over 40 hours a week.
- Some states also have their own overtime laws. This means that both federal and state laws may apply to your business.
- Understanding the overtime rules that apply to your business and employees is crucial to avoiding wage theft, which can result in orders to pay back pay and damages.
What Are Overtime Laws?
Overtime laws are rules and regulations requiring employers to pay employees a higher rate for time worked over a certain number of hours in a week or day.
These laws discourage employers from overworking employees by putting a premium on hours worked beyond a standard workweek. They also ensure employees receive fair pay for the work they do.
Overtime rules exist at the federal and state levels, and the specifics of these laws vary. However, they usually address factors including:
- Standard rate of pay: The amount the employee is typically paid. This must be at least the state or federal minimum wage. How an employee’s standard rate of pay is calculated depends on whether their earnings are based on an hourly rate, salary, piece rate, or commission.
- Overtime threshold: How many hours an employee works in a week or day before overtime rates apply.
- Overtime pay rate: How much the employee must be paid for overtime. This is typically calculated based on the employee’s standard rate of pay.
- Statute of limitations: The timeframe for when an employee who wants to complain about unpaid overtime must issue their complaint.
Some laws also address whether employers can offer compensatory leave instead of overtime. This allows the employee to choose to take time off rather than be paid for overtime.
Why Is It Important To Comply With Overtime Laws?
The biggest reason why it’s essential to comply with overtime laws is to ensure you pay your employees correctly and avoid legal troubles.
When employers fail to properly pay employees for overtime hours, employees can file a wage complaint with the relevant federal or state wage and hour agency.
For example, the federal Wage and Hour Division of the Department of Labor (DOL) investigates alleged wage violations under the FLSA. Where an employee hasn’t been paid overtime correctly, the Division can recover back wages, liquidated damages, and civil penalties from the employer. Repeated willful wage violations can even result in criminal prosecution.
In addition, complying with overtime laws:
- Protects your business’s reputation by demonstrating its commitment to compliance and responsible business practices.
- Ensures employees feel respected and valued because they’re compensated properly, which can boost job satisfaction.
- Supports employee well-being and reduces the risk of burnout, fostering increased productivity and a positive work environment.
Federal Overtime Laws
Overtime pay is addressed at the federal level by the FLSA.
Under the FLSA, non-exempt employees are entitled to 1.5 times their pay for each hour over 40 hours per workweek. A workweek is 7 consecutive days or 168 hours that form part of a regularly recurring schedule.
To be eligible for overtime, employees must work for an employer covered by the FLSA. The FLSA applies to businesses:
- With gross annual sales of $500,000 or more.
- In the health or education sectors.
- Engaged in interstate commerce.
The FLSA overtime provisions only apply to non-exempt employees. A range of occupations and duties are exempt from overtime. Exempt employees include:
- Executive, administrative, and professional employees who earn at least $684 per week or $35,568 per year full-time.
- Certain computer professionals who make at least $684 per week or $27.63 an hour.
- Outside sales employees.
- Highly compensated employees earning $107,432 or more a year.
🧠 Did You Know?
Accurately recording your employees’ hours is crucial for compliance with overtime laws. Connecteam’s time clock is the ideal solution for this. It tracks workers’ time down to the second—right from their mobile devices. You can also create custom overtime rules, including when overtime starts and how it’s calculated, that sync with the time clock.
State Overtime Laws
In addition to the FLSA, some states also have overtime rules.
Like the FLSA, most state laws apply to certain employers or employees. For instance, in Alaska, laws on overtime apply only to employers with 4 or more employees, while in Colorado, overtime applies only to employees in specific industries, like retail and food and beverage.
In addition to state laws, there may also be laws that apply to your business or employees at a county or city level.
Where there’s no state law in addition to the FLSA, FLSA overtime rules (employees must be paid 1.5 times their regular rate of pay for any time over 40 hours in a workweek) apply to non-exempt employees.
Where both the FLSA and state laws cover your business and employees, the one most favorable to the employee applies. This means the law that results in the employee earning the most for overtime.
If you have remote workers, generally, the law of the state where the employee is based and does their work applies. For example, if your business is based in California and hires someone to work remotely from Georgia, Georgia’s labor laws apply.
Below, we’ve compiled a summary of state overtime pay laws, including state minimum wage information for reference. The table is only an overview—you should check the details of any relevant state law.
It also only refers to overtime laws affecting private employers. The laws for public employers and employees may differ.
| State | State Law in Addition to FLSA? | Weekly Overtime | Daily Overtime | Overtime Rate | Minimum Wage |
| Alabama | No | N/A | N/A | N/A | $7.25 (FLSA) |
| Alaska | Yes | 40 hours. Applies to employers with 4 or more employees. | 8 hours. Applies to employers with 4 or more employees. | 1.5x the employee’s regular rate of pay | $10.85 |
| Arizona | No | N/A | N/A | N/A | $13.85 |
| Arkansas | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $11.00 |
| California | Yes | 40 hours / First 8 hours on the 7th consecutive day of work | 8 hours / 12 hours in a single work day (different overtime rates apply) | 1.5 x the employees’ regular rate of pay for:- Over 40 hours in a week- First 8 hours of 7th consecutive work day- 8-12 hours in a single work day 2 x the employee’s regular rate of pay for time over:- 8 hours on 7th consecutive day- 12 hours in a single workday | $15.50 |
| Colorado | Yes | 40 hours | 12 hours / 12 consecutive hours, regardless of when the workday starts or ends | 1.5 x the employee’s regular rate of pay | $13.65 |
| Connecticut | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $15.00 |
| Delaware | No | N/A | N/A | N/A | $11.75 |
| Florida | No | N/A | N/A | N/A | $12.00 |
| Georgia | No | N/A | N/A | N/A | $5.15 / $7.25 (if FLSA applies) |
| Hawaii | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $12.00 |
| Idaho | No | N/A | N/A | N/A | $7.25 |
| Illinois | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $13.00 |
| Indiana | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $7.25 |
| Iowa | No | N/A | N/A | N/A | $7.25 |
| Kansas | Yes | 46 hours | N/A | 1.5 x the employee’s regular rate of pay | $7.25 |
| Kentucky | Yes | 40 hours, or on the 7th consecutive day of work | N/A | 1.5 x the employee’s regular rate of pay | $7.25 |
| Louisiana | No | N/A | N/A | N/A | $7.25 (if FLSA applies) |
| Maine | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $13.80 |
| Maryland | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $12.80 / $13.25, depending on number of employees |
| Massachusetts | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $15.00 |
| Michigan | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $10.10 |
| Minnesota | Yes | 48 hours | N/A | 1.5 x the employee’s regular rate of pay | $8.63 / $10.59, depending on size of employer |
| Mississippi | No | N/A | N/A | N/A | $7.25 (if FLSA applies) |
| Missouri | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $12.00 |
| Montana | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $4.00 / $9.95, depending on size of business |
| Nebraska | No | N/A | N/A | N/A | $10.50 |
| Nevada | Yes | 40 hours | 8 hours | 1.5 x the employee’s regular rate of pay | $10.25 / $11.25, depending on whether employer offers qualifying health insurance |
| New Hampshire | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $7.25 |
| New Jersey | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $12.93 (for seasonal and small employers) / $14.13 |
| New Mexico | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $12.00 |
| New York | Yes | 40 hours /44 hours for certain residential or domestic employees | N/A | 1.5 x the employee’s regular rate of pay | $14.20 / $15.00, depending on location |
| North Carolina | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $7.25 (if FLSA applies) |
| North Dakota | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $7.25 (if FLSA applies) |
| Ohio | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $7.25 / $10.10, depending on size of business |
| Oklahoma | No | N/A | N/A | N/A | $2.00 / $7.25, depending on size of employer |
| Oregon | Yes | 40 hours | 10 hours for certain industries, including non-farm canneries and driers | 1.5 x the employee’s regular rate of pay | $14.20 |
| Pennsylvania | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $7.25 (if FLSA applies) |
| Rhode Island | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $13.00 |
| South Carolina | No | N/A | N/A | N/A | $7.25 (if FLSA applies) |
| South Dakota | No | N/A | N/A | N/A | $10.80 |
| Tennessee | No | N/A | N/A | N/A | $7.25 (if FLSA applies) |
| Texas | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $7.25 |
| Utah | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $7.25 (if FLSA applies) |
| Vermont | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $13.18 |
| Virginia | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $12.00 |
| Washington | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $15.74 |
| West Virginia | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $8.75 |
| Wisconsin | Yes | 40 hours | N/A | 1.5 x the employee’s regular rate of pay | $7.25 |
| Wyoming | No | N/A | N/A | N/A | $5.15 |
📚 This Might Interest You
Check out our state-by-state labor law guides to learn more about the specific labor laws in your state—including wage and hour, leave, child labor, and workplace health and safety laws.
See our complete 2024 Manager’s Guide on Overtime to confidently manage overtime.
Where To Find Further Information
To check the details of these state laws and find further information on your obligations under them, contact your state’s labor office or wage and hour agency.
Additionally, the DOL’s Wage and Hour Division provides resources on the FLSA via its website.
Like any labor law topic, you should also speak to an attorney to fully understand the overtime pay laws that apply to your business and employees. The laws on overtime can be complex—especially where multiple federal, state, and local rules apply—and change often. A labor law attorney can advise you on your obligations and how to stay compliant.
FAQs
What states require overtime pay after 8 hours?
There are several states with daily overtime. Alaska, California, and Nevada require employers to pay employees overtime after working more than 8 hours a day.
Is it legal for a company to not pay overtime?
Some companies aren’t required by federal, state, or local law to pay employees overtime. However, the FLSA applies to most employees, and many states have their own overtime laws. Employers who fail to comply with these laws may face an investigation for wage theft.
Conclusion
While no US law prevents you from asking employees to work beyond their standard hours, you must compensate them properly for their time. Overtime laws at the federal, state, and local levels may apply to your business and employees.
It’s essential to understand which laws apply to you and how they operate to reduce the risk of underpaying your employees, which can have serious financial and legal consequences. Paying your employees accurately also ensures they’re fairly compensated, fostering a positive work environment and boosting job satisfaction.
With this guide to get you started, you’re on your way to understanding and complying with the overtime laws that apply to your business and employees.
Disclaimer
The information on this website about laws on overtime in the US is intended to be a summary for informational purposes only. However, laws and regulations regularly change and may vary depending on individual circumstances. While we have made every effort to ensure the information provided is up-to-date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Therefore, we strongly recommend that readers seek guidance from their legal department or a qualified attorney to ensure compliance with applicable laws and regulations. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.