Comprehensive Guide to Overtime Laws: Federal Rules and State-by-State Breakdown for Employers
By Eddy Team — Updated October 2024
Did you know that overtime rules can change dramatically depending on where your business operates? While federal law sets the baseline for overtime pay, each state has the power to set its own rules—and some of them might surprise you. Whether you're an employer managing a team or an employee curious about your rights, understanding both federal and state-specific overtime laws is crucial for staying compliant and avoiding costly penalties.
In this comprehensive guide, we’ll break down overtime regulations for all 50 states, highlighting the key differences that could impact your bottom line.
Understanding Federal Overtime Law: The FLSA
The foundation of overtime law in the U.S. is governed by the Fair Labor Standards Act (FLSA), a federal law that sets the minimum standards for how employees are paid. Under the FLSA, most employees are entitled to overtime pay at a rate of 1.5 times their regular pay for all hours worked over 40 in a workweek. But the details don’t stop there—understanding how this federal law applies to different types of employees is crucial for both employers and workers alike.
What is the FLSA?
The Fair Labor Standards Act, enacted in 1938, is a cornerstone of U.S. labor law. It not only established the 40-hour workweek but also set requirements for minimum wage, child labor, and record-keeping. The FLSA’s overtime provisions aim to protect workers by ensuring they are fairly compensated for time worked beyond the standard workweek.
Federal Overtime Pay Requirements
The basic requirement under the FLSA is clear: non-exempt employees must receive overtime pay for any hours worked over 40 in a single workweek. The overtime rate is 1.5 times the employee's regular rate of pay. A workweek is defined as any fixed and recurring period of 7 consecutive days, and overtime is calculated weekly, meaning working long hours in one day does not automatically result in overtime unless the total hours for the week exceed 40.
Exempt vs. Non-Exempt Employees
One of the most critical distinctions under the FLSA is whether an employee is exempt or non-exempt from overtime requirements.
- Non-exempt employees are typically paid on an hourly basis and are entitled to overtime pay.
- Exempt employees are usually salaried and meet certain criteria set by the FLSA. Common exemptions include executive, administrative, professional, outside sales employees, and certain computer employees.
These exemptions often depend on both the nature of the employee’s job duties and their salary level. As of 2020, the FLSA set the minimum salary threshold for exempt employees at $684 per week or $35,568 annually.
Misclassification Risks
Misclassifying employees as exempt when they should be non-exempt can result in severe penalties. Employers who misclassify workers may be required to pay back wages for unpaid overtime, as well as fines and other damages. It’s essential for businesses to correctly classify their workers to avoid these legal risks.
Federal vs. State Overtime Laws
While the FLSA provides a national standard for overtime, it’s important to remember that states can impose their own rules—sometimes offering greater protections to employees. When federal and state laws differ, the rule that is most beneficial to the employee applies. For example, if a state requires overtime pay after 8 hours in a single day, the employer must comply with that law even though the federal rule is based on a 40-hour workweek.
State-Specific Overtime Laws Overview
While the Fair Labor Standards Act (FLSA) sets a baseline for overtime across the country, each state has the authority to create its own regulations that may go beyond federal requirements. Some states strictly follow federal guidelines, while others have implemented their own rules, such as daily overtime thresholds or special provisions for certain industries.
For example, states like California and Colorado require overtime after 8 hours of work in a single day, while others like New York or Nevada have more nuanced regulations based on wage rates or industry-specific exemptions. Understanding how each state approaches overtime is essential for businesses operating in multiple states to ensure compliance and avoid costly penalties.
Below we list the overtime rules for all 50 states, highlighting key differences and how they affect both employers and employees.
Alabama
Alabama does not have a state law for overtime pay. Instead, follow federal overtime rules.
Alaska
Alaska has a state overtime law which requires overtime pay for work over 8 hours in a day or 40 hours in a week. Exceptions apply to some employees. For example, the state law does not apply to employers who typically employ fewer than four employees. Also there are a number of other exemptions, such as agricultural employees.
Arizona
Arizona does not specify a state overtime pay. Follow federal overtime rules.
Arkansas
Arkansas follows the federal overtime rules.
California
California has a state overtime law that Overtime pay is required after 8 hours in a day or 40 hours in a week. Double time after 12 hours in a day or on the seventh consecutive day of work.
Colorado
Colorado has a state overtime law which requires employers to provide overtime to nonexempt employees for any time worked beyond:
- 40 hours in a workweek
- 12 hours in a workday
- 12 consecutive hours without regard to the starting and ending time of the workday
Connecticut
Connecticut follows the federal overtime rules for most industries; some state-specific overtime provisions apply for mercantile employees.
Delaware
Delaware follows federal overtime law, but with special rules for certain industries such as retail.
D.C.
Washington D.C.’s overtime law follows federal requirements, with some additional protections for domestic workers.
Florida
Florida does not specify a state overtime pay.
Georgia
Georgia follows federal overtime rules.
Hawaii
Hawaii generally follows federal overtime rules. However, the state does consider hours worked beyond eight in a workday overtime if the work is performed on a State or county public works construction project. There are some additional requirements for premium pay on certain holidays and protections for certain industries.
Idaho
Idaho follows federal overtime rules.
Illinois
Illinois follows federal overtime rules. Special rules apply for certain industries like retail and hospitality.
Indiana
Indiana’s state overtime law aligns with the federal law.
Iowa
Iowa does not specify a state overtime pay. Follow the federal overtime law.
Kansas
Kansas law follows federal overtime law but also mandates overtime for public works employees after 8 hours in a day.
Kentucky
Kentucky follows federal overtime rules with some additional protections for rest periods and paid breaks.
Louisiana
Louisiana does not specify a state overtime policy. Follow federal overtime rules.
Maine
Maine follows the federal law in that it requires overtime for hours worked beyond 40. However, Maine has a different salary threshold than the FLSA. As of July 1, 2024, the new salary threshold is $43,888 per year or $844 per week. As of January 1, 2025, the threshold will be $58,656 per year or $1,128 per week.
Maryland
Maryland follows the same overtime rules as federal law. However, some occupations in Maryland calculate overtime using a different period of time than a 7-day workweek. Overtime is required for agricultural workers after 60 hours per week.
Massachusetts
The state overtime law in Massachusetts follows federal overtime laws in that it requires overtime for hours worked beyond 40 in a workweek. Additional requirements apply for domestic workers and certain other industries.
Michigan
Michigan follows the federal overtime law. However, Michigan’s overtime law applies to employers with two or more employees.
Minnesota
Minnesota’s requires overtime pay after 48 hours in a week for most employees (more lenient than federal law). Because the federal law is 40 hours, follow the FLSA if you’re covered under it. If the FLSA doesn’t apply to you, follow Minnesota’s overtime law.
Mississippi
Mississippi does not specify a state overtime policy. Follow federal overtime laws.
Missouri
Missouri follows the federal overtime law, with additional requirements for public works employees after 8 hours in a day.
Montana
Montana follows federal overtime rules, with minor exceptions for state employees.
Nebraska
Nebraska follows federal overtime rules.
Nevada
Nevada requires overtime pay for work over 8 hours in a day if the employee earns less than 1.5 times the minimum wage, or 40 hours in a week.
New Hampshire
New Hampshire employers must follow the FLSA.
New Jersey
New Jersey’s state overtime law aligns with federal rules, with additional requirements for certain service industries.
New Mexico
New Mexico does not specify a state overtime policy. Follow federal overtime laws.
New York
New York follows federal law but has additional protections for domestic workers and employees in restaurants and hotels.
North Carolina
North Carolina aligns with the FLSA and requires overtime pay for nonexempt employees who work beyond 40 in a workweek.
North Dakota
North Dakota follows the federal overtime law, but requires overtime after 8 hours in a day for oilfield and construction workers.
Ohio
Ohio follows federal overtime laws and requires overtime for hours worked beyond 40.
Oklahoma
Oklahoma does not specify a state overtime policy. Follow federal overtime laws.
Oregon
Oregon requires overtime after 40 hours in a week or 10 hours in a day for certain industries, including manufacturing.
Pennsylvania
Pennsylvania Follows federal law, but with specific provisions for tipped employees and others in certain industries.
Rhode Island
Rhode Island requires overtime pay after 40 hours in a week or after 8 hours in a day for certain manufacturing jobs.
South Carolina
South Carolina does not specify a state overtime policy. Follow federal overtime rules.
South Dakota
South Dakota does not have a state overtime law. Follow the FLSA.
Tennessee
Tennessee does not specify a state overtime policy, so follow the FLSA.
Texas
Texas’s state overtime law aligns with federal overtime rules.
Utah
Utah does not specify a state overtime policy. Follow the Fair Labor Standards Act.
Vermont
Vermont Follows federal law, with additional protections for agricultural and domestic workers.
Virginia
Virginia employers can typically follow federal FLSA standards for calculating overtime. However, employers still need to be mindful of the potential for greater penalties under state law for noncompliance.
Washington
Washington’s state law follows federal law for most employees but also requires daily overtime after 8 hours in a day for manufacturing and retail employees.
West Virginia
West Virginia follows federal law with additional provisions for public employees and certain industries like healthcare.
Wisconsin
Wisconsin’s Follows federal law for most industries but requires daily overtime after 8 hours for certain public works projects.
Wyoming
Wyoming enforces the federal overtime law.
Practical Steps for Employers to Stay Compliant
Ensuring compliance with overtime laws is important because violations can lead to costly fines, back wages, and legal disputes. Whether you operate in a single state or across multiple states, it’s essential to stay on top of both federal and state-specific overtime regulations. Below are practical steps employers can take to remain compliant with overtime laws and avoid common pitfalls.
1. Understand Federal and State Overtime Rules
The first step in compliance is understanding how federal and state overtime laws apply to your workforce. While the Fair Labor Standards Act (FLSA) sets the minimum standards, many states have additional requirements, such as daily overtime thresholds or industry-specific rules. If your employees are spread across multiple states, it’s crucial to track the laws in each jurisdiction and apply the one that is most beneficial to the employee. Keeping up with any changes in state law is also essential, as states frequently update their labor laws.
2. Implement an Automated Payroll Systems
Manually calculating overtime for employees can lead to errors, especially if you’re dealing with complex state laws or fluctuating schedules. Implementing an automated payroll system such as Eddy can significantly reduce errors and streamline compliance with overtime rules. Eddy’s platform offers built-in alerts for compliance risks and simplifies overtime calculations based on varying state laws.
A robust payroll system tracks hours worked, automatically calculates overtime, and ensures employees are paid accurately and on time. Many HR and payroll platforms can also alert you to potential compliance issues, helping you stay ahead of regulatory changes.
3. Maintain Accurate Timekeeping Records
Accurate timekeeping is the backbone of overtime compliance. Employers must ensure that all non-exempt employees are properly tracking their work hours, including any breaks and off-the-clock work. Using digital time-tracking tools can streamline this process, ensuring accurate records for both regular and overtime hours. In the event of an audit or dispute, having detailed and well-organized time records can protect your business from potential legal and financial consequences.
4. Review Employee Classifications Regularly
One of the most common overtime compliance issues arises from the misclassification of employees as exempt when they should be non-exempt. Employers should regularly review employee classifications to ensure they are consistent with federal and state laws. This is particularly important when employees take on new roles or responsibilities, as changes in job duties can impact their exemption status. Misclassifying employees can result in back wages, penalties, and lawsuits, so it’s vital to stay vigilant.
5. Keep Up with Regulatory Updates
Labor laws, especially state-specific overtime regulations, can change over time. Employers need to stay informed about any updates to federal and state overtime laws that may affect their compliance obligations. Subscribing to legal newsletters, joining industry groups, or working with a legal advisor can help ensure that you are aware of any changes and can adjust your payroll practices accordingly.
6. Seek Legal or HR Expertise When Necessary
If you're unsure whether your business is in compliance with overtime regulations, it's a good idea to consult with legal or HR professionals. Particularly for businesses that operate across multiple states, professional guidance can help clarify complex rules and avoid costly mistakes. Experts can provide insights on how best to implement overtime policies that align with your business's operations while remaining compliant with all applicable laws.
Final Thoughts
Navigating overtime laws can be complex, especially for businesses operating in multiple states. By understanding both federal and state-specific regulations and implementing the right tools and processes, you can ensure compliance, protect your business, and provide fair compensation to your employees.
Additional Resources
Eddy's HR Newsletter
Sign up for our email newsletter for helpful HR advice and ideas.
Comprehensive Guide to Overtime Laws: Federal Rules and State-by-State Breakdown for Employers
By Eddy Team — Updated October 2024
Did you know that overtime rules can change dramatically depending on where your business operates? While federal law sets the baseline for overtime pay, each state has the power to set its own rules—and some of them might surprise you. Whether you're an employer managing a team or an employee curious about your rights, understanding both federal and state-specific overtime laws is crucial for staying compliant and avoiding costly penalties.
In this comprehensive guide, we’ll break down overtime regulations for all 50 states, highlighting the key differences that could impact your bottom line.
Understanding Federal Overtime Law: The FLSA
The foundation of overtime law in the U.S. is governed by the Fair Labor Standards Act (FLSA), a federal law that sets the minimum standards for how employees are paid. Under the FLSA, most employees are entitled to overtime pay at a rate of 1.5 times their regular pay for all hours worked over 40 in a workweek. But the details don’t stop there—understanding how this federal law applies to different types of employees is crucial for both employers and workers alike.
What is the FLSA?
The Fair Labor Standards Act, enacted in 1938, is a cornerstone of U.S. labor law. It not only established the 40-hour workweek but also set requirements for minimum wage, child labor, and record-keeping. The FLSA’s overtime provisions aim to protect workers by ensuring they are fairly compensated for time worked beyond the standard workweek.
Federal Overtime Pay Requirements
The basic requirement under the FLSA is clear: non-exempt employees must receive overtime pay for any hours worked over 40 in a single workweek. The overtime rate is 1.5 times the employee's regular rate of pay. A workweek is defined as any fixed and recurring period of 7 consecutive days, and overtime is calculated weekly, meaning working long hours in one day does not automatically result in overtime unless the total hours for the week exceed 40.
Exempt vs. Non-Exempt Employees
One of the most critical distinctions under the FLSA is whether an employee is exempt or non-exempt from overtime requirements.
- Non-exempt employees are typically paid on an hourly basis and are entitled to overtime pay.
- Exempt employees are usually salaried and meet certain criteria set by the FLSA. Common exemptions include executive, administrative, professional, outside sales employees, and certain computer employees.
These exemptions often depend on both the nature of the employee’s job duties and their salary level. As of 2020, the FLSA set the minimum salary threshold for exempt employees at $684 per week or $35,568 annually.
Misclassification Risks
Misclassifying employees as exempt when they should be non-exempt can result in severe penalties. Employers who misclassify workers may be required to pay back wages for unpaid overtime, as well as fines and other damages. It’s essential for businesses to correctly classify their workers to avoid these legal risks.
Federal vs. State Overtime Laws
While the FLSA provides a national standard for overtime, it’s important to remember that states can impose their own rules—sometimes offering greater protections to employees. When federal and state laws differ, the rule that is most beneficial to the employee applies. For example, if a state requires overtime pay after 8 hours in a single day, the employer must comply with that law even though the federal rule is based on a 40-hour workweek.
State-Specific Overtime Laws Overview
While the Fair Labor Standards Act (FLSA) sets a baseline for overtime across the country, each state has the authority to create its own regulations that may go beyond federal requirements. Some states strictly follow federal guidelines, while others have implemented their own rules, such as daily overtime thresholds or special provisions for certain industries.
For example, states like California and Colorado require overtime after 8 hours of work in a single day, while others like New York or Nevada have more nuanced regulations based on wage rates or industry-specific exemptions. Understanding how each state approaches overtime is essential for businesses operating in multiple states to ensure compliance and avoid costly penalties.
Below we list the overtime rules for all 50 states, highlighting key differences and how they affect both employers and employees.
Alabama
Alabama does not have a state law for overtime pay. Instead, follow federal overtime rules.
Alaska
Alaska has a state overtime law which requires overtime pay for work over 8 hours in a day or 40 hours in a week. Exceptions apply to some employees. For example, the state law does not apply to employers who typically employ fewer than four employees. Also there are a number of other exemptions, such as agricultural employees.
Arizona
Arizona does not specify a state overtime pay. Follow federal overtime rules.
Arkansas
Arkansas follows the federal overtime rules.
California
California has a state overtime law that Overtime pay is required after 8 hours in a day or 40 hours in a week. Double time after 12 hours in a day or on the seventh consecutive day of work.
Colorado
Colorado has a state overtime law which requires employers to provide overtime to nonexempt employees for any time worked beyond:
- 40 hours in a workweek
- 12 hours in a workday
- 12 consecutive hours without regard to the starting and ending time of the workday
Connecticut
Connecticut follows the federal overtime rules for most industries; some state-specific overtime provisions apply for mercantile employees.
Delaware
Delaware follows federal overtime law, but with special rules for certain industries such as retail.
D.C.
Washington D.C.’s overtime law follows federal requirements, with some additional protections for domestic workers.
Florida
Florida does not specify a state overtime pay.
Georgia
Georgia follows federal overtime rules.
Hawaii
Hawaii generally follows federal overtime rules. However, the state does consider hours worked beyond eight in a workday overtime if the work is performed on a State or county public works construction project. There are some additional requirements for premium pay on certain holidays and protections for certain industries.
Idaho
Idaho follows federal overtime rules.
Illinois
Illinois follows federal overtime rules. Special rules apply for certain industries like retail and hospitality.
Indiana
Indiana’s state overtime law aligns with the federal law.
Iowa
Iowa does not specify a state overtime pay. Follow the federal overtime law.
Kansas
Kansas law follows federal overtime law but also mandates overtime for public works employees after 8 hours in a day.
Kentucky
Kentucky follows federal overtime rules with some additional protections for rest periods and paid breaks.
Louisiana
Louisiana does not specify a state overtime policy. Follow federal overtime rules.
Maine
Maine follows the federal law in that it requires overtime for hours worked beyond 40. However, Maine has a different salary threshold than the FLSA. As of July 1, 2024, the new salary threshold is $43,888 per year or $844 per week. As of January 1, 2025, the threshold will be $58,656 per year or $1,128 per week.
Maryland
Maryland follows the same overtime rules as federal law. However, some occupations in Maryland calculate overtime using a different period of time than a 7-day workweek. Overtime is required for agricultural workers after 60 hours per week.
Massachusetts
The state overtime law in Massachusetts follows federal overtime laws in that it requires overtime for hours worked beyond 40 in a workweek. Additional requirements apply for domestic workers and certain other industries.
Michigan
Michigan follows the federal overtime law. However, Michigan’s overtime law applies to employers with two or more employees.
Minnesota
Minnesota’s requires overtime pay after 48 hours in a week for most employees (more lenient than federal law). Because the federal law is 40 hours, follow the FLSA if you’re covered under it. If the FLSA doesn’t apply to you, follow Minnesota’s overtime law.
Mississippi
Mississippi does not specify a state overtime policy. Follow federal overtime laws.
Missouri
Missouri follows the federal overtime law, with additional requirements for public works employees after 8 hours in a day.
Montana
Montana follows federal overtime rules, with minor exceptions for state employees.
Nebraska
Nebraska follows federal overtime rules.
Nevada
Nevada requires overtime pay for work over 8 hours in a day if the employee earns less than 1.5 times the minimum wage, or 40 hours in a week.
New Hampshire
New Hampshire employers must follow the FLSA.
New Jersey
New Jersey’s state overtime law aligns with federal rules, with additional requirements for certain service industries.
New Mexico
New Mexico does not specify a state overtime policy. Follow federal overtime laws.
New York
New York follows federal law but has additional protections for domestic workers and employees in restaurants and hotels.
North Carolina
North Carolina aligns with the FLSA and requires overtime pay for nonexempt employees who work beyond 40 in a workweek.
North Dakota
North Dakota follows the federal overtime law, but requires overtime after 8 hours in a day for oilfield and construction workers.
Ohio
Ohio follows federal overtime laws and requires overtime for hours worked beyond 40.
Oklahoma
Oklahoma does not specify a state overtime policy. Follow federal overtime laws.
Oregon
Oregon requires overtime after 40 hours in a week or 10 hours in a day for certain industries, including manufacturing.
Pennsylvania
Pennsylvania Follows federal law, but with specific provisions for tipped employees and others in certain industries.
Rhode Island
Rhode Island requires overtime pay after 40 hours in a week or after 8 hours in a day for certain manufacturing jobs.
South Carolina
South Carolina does not specify a state overtime policy. Follow federal overtime rules.
South Dakota
South Dakota does not have a state overtime law. Follow the FLSA.
Tennessee
Tennessee does not specify a state overtime policy, so follow the FLSA.
Texas
Texas’s state overtime law aligns with federal overtime rules.
Utah
Utah does not specify a state overtime policy. Follow the Fair Labor Standards Act.
Vermont
Vermont Follows federal law, with additional protections for agricultural and domestic workers.
Virginia
Virginia employers can typically follow federal FLSA standards for calculating overtime. However, employers still need to be mindful of the potential for greater penalties under state law for noncompliance.
Washington
Washington’s state law follows federal law for most employees but also requires daily overtime after 8 hours in a day for manufacturing and retail employees.
West Virginia
West Virginia follows federal law with additional provisions for public employees and certain industries like healthcare.
Wisconsin
Wisconsin’s Follows federal law for most industries but requires daily overtime after 8 hours for certain public works projects.
Wyoming
Wyoming enforces the federal overtime law.
Practical Steps for Employers to Stay Compliant
Ensuring compliance with overtime laws is important because violations can lead to costly fines, back wages, and legal disputes. Whether you operate in a single state or across multiple states, it’s essential to stay on top of both federal and state-specific overtime regulations. Below are practical steps employers can take to remain compliant with overtime laws and avoid common pitfalls.
1. Understand Federal and State Overtime Rules
The first step in compliance is understanding how federal and state overtime laws apply to your workforce. While the Fair Labor Standards Act (FLSA) sets the minimum standards, many states have additional requirements, such as daily overtime thresholds or industry-specific rules. If your employees are spread across multiple states, it’s crucial to track the laws in each jurisdiction and apply the one that is most beneficial to the employee. Keeping up with any changes in state law is also essential, as states frequently update their labor laws.
2. Implement an Automated Payroll Systems
Manually calculating overtime for employees can lead to errors, especially if you’re dealing with complex state laws or fluctuating schedules. Implementing an automated payroll system such as Eddy can significantly reduce errors and streamline compliance with overtime rules. Eddy’s platform offers built-in alerts for compliance risks and simplifies overtime calculations based on varying state laws.
A robust payroll system tracks hours worked, automatically calculates overtime, and ensures employees are paid accurately and on time. Many HR and payroll platforms can also alert you to potential compliance issues, helping you stay ahead of regulatory changes.
3. Maintain Accurate Timekeeping Records
Accurate timekeeping is the backbone of overtime compliance. Employers must ensure that all non-exempt employees are properly tracking their work hours, including any breaks and off-the-clock work. Using digital time-tracking tools can streamline this process, ensuring accurate records for both regular and overtime hours. In the event of an audit or dispute, having detailed and well-organized time records can protect your business from potential legal and financial consequences.
4. Review Employee Classifications Regularly
One of the most common overtime compliance issues arises from the misclassification of employees as exempt when they should be non-exempt. Employers should regularly review employee classifications to ensure they are consistent with federal and state laws. This is particularly important when employees take on new roles or responsibilities, as changes in job duties can impact their exemption status. Misclassifying employees can result in back wages, penalties, and lawsuits, so it’s vital to stay vigilant.
5. Keep Up with Regulatory Updates
Labor laws, especially state-specific overtime regulations, can change over time. Employers need to stay informed about any updates to federal and state overtime laws that may affect their compliance obligations. Subscribing to legal newsletters, joining industry groups, or working with a legal advisor can help ensure that you are aware of any changes and can adjust your payroll practices accordingly.
6. Seek Legal or HR Expertise When Necessary
If you're unsure whether your business is in compliance with overtime regulations, it's a good idea to consult with legal or HR professionals. Particularly for businesses that operate across multiple states, professional guidance can help clarify complex rules and avoid costly mistakes. Experts can provide insights on how best to implement overtime policies that align with your business's operations while remaining compliant with all applicable laws.
Final Thoughts
Navigating overtime laws can be complex, especially for businesses operating in multiple states. By understanding both federal and state-specific regulations and implementing the right tools and processes, you can ensure compliance, protect your business, and provide fair compensation to your employees.
Additional Resources
Eddy's HR Newsletter
Sign up for our email newsletter for helpful HR advice and ideas.
