Federal overtime law
The Fair Labor Standards Act (FLSA) establishes the baseline for overtime in the United States:
- 40-hour workweek: Non-exempt employees must receive overtime pay for hours worked beyond 40 in a workweek
- Minimum rate: At least 1.5 times the regular rate of pay
- Workweek definition: A fixed, regularly recurring period of 168 hours (seven consecutive 24-hour periods)
States with daily overtime rules
While federal law only mandates overtime on a weekly basis, some states require overtime for daily hours worked beyond a certain threshold:
California
- Over 8 hours/day: 1.5x overtime
- Over 12 hours/day: 2x (double time)
- Over 8 hours on 7th consecutive day: 1.5x
- Over 12 hours on 7th consecutive day: 2x
Alaska
- Over 8 hours/day: 1.5x overtime
Nevada
- Over 8 hours/day: 1.5x (for employees earning less than 1.5x minimum wage)
Colorado
- Over 12 hours/day: 1.5x overtime
- Over 40 hours/week: 1.5x overtime
Oregon
- Over 10 hours/day: 1.5x (manufacturing sector only)
States that follow federal standards only
Most other states follow the federal FLSA standard, requiring overtime only after 40 hours per week. This includes states like:
- Texas
- Florida
- New York
- Illinois
- Pennsylvania
- Ohio
- Georgia
- North Carolina
Exempt vs. non-exempt employees
Who is exempt?
Under FLSA, certain categories of workers are exempt from overtime:
- Executive exemption: Salaried employees who manage others and have hiring/firing authority
- Administrative exemption: Salaried employees performing office work with independent judgment
- Professional exemption: Learned professionals (doctors, lawyers, engineers) or creative professionals
- Computer employee exemption: Certain computer professionals earning at least $684/week
- Outside sales exemption: Employees whose primary duty is making sales away from the employer's premises
Salary threshold
As of 2024, employees must earn at least 35,568 annually) to qualify for most white-collar exemptions. This threshold is periodically updated by the Department of Labor.
Industry-specific rules
Healthcare
- Hospitals and residential care facilities may use an 8/80 overtime system: overtime is due after 8 hours in a day or 80 hours in a 14-day period
Transportation
- Truck drivers, bus drivers, and other transportation workers may be covered by the Motor Carrier Act instead of FLSA
- Different overtime rules may apply depending on vehicle size and routes
Agriculture
- Agricultural workers are generally exempt from FLSA overtime requirements
- Some states (like California) provide overtime protections for agricultural workers
Compensatory time (comp time)
In the private sector, employers cannot offer comp time instead of overtime pay. However:
- State and local government employees may receive comp time at a rate of 1.5 hours per overtime hour worked
- Comp time must be mutually agreed upon
- Maximum accrual limits apply
Calculating your overtime rate
Your overtime rate is based on your regular rate of pay, which includes more than just your base hourly wage:
Must be included in regular rate:
- Non-discretionary bonuses
- Shift differentials
- Commissions
- Piece-rate earnings
- Cost-of-living allowances
Not included in regular rate:
- Discretionary bonuses
- Gifts
- Holiday bonuses (if truly discretionary)
- Reimbursement for expenses
What to do if your employer violates overtime laws
- Document everything: Keep records of hours worked and pay received
- Talk to HR: Sometimes issues are due to payroll errors
- File a complaint: Contact the U.S. Department of Labor's Wage and Hour Division
- Consult an attorney: An employment lawyer can advise you on your rights
- Statute of limitations: FLSA claims generally must be filed within 2 years (3 years for willful violations)