blog

Overtime Laws by State: What You Need to Know in 2024

A comprehensive guide to federal and state overtime rules, including California's daily overtime, state-specific exemptions, and how to ensure you're paid correctly.

Federal Overtime Rules: The Baseline

The Fair Labor Standards Act (FLSA) establishes the federal overtime floor that applies nationwide. Under the FLSA:

  • Non-exempt employees must receive 1.5x their regular rate for all hours worked over 40 in a workweek
  • The workweek is a fixed, recurring 168-hour period (7 consecutive 24-hour periods)
  • Employers cannot average hours across multiple weeks (no “you worked 50 hours this week and 30 next week, so it averages to 40”)
  • The regular rate includes base pay plus certain bonuses, commissions, and shift differentials

Who’s Covered

Most hourly workers are non-exempt and entitled to overtime. The FLSA exempts employees who meet all three criteria:

  1. Paid on a salary basis (not hourly)
  2. Earn at least $844/week ($43,888/year) - updated in July 2024
  3. Perform exempt job duties (executive, administrative, professional, computer, or outside sales)

Important 2024 change: The salary threshold was raised from $684/week to $844/week, making approximately 4 million additional workers eligible for overtime. A second increase was proposed but has faced legal challenges.

States With Overtime Rules Beyond Federal Law

Most states simply follow the FLSA. But several states have additional protections that go beyond the federal baseline.

California: The Most Employee-Friendly OT Laws

California’s overtime rules are the most expansive in the country:

  • Daily overtime: 1.5x pay for hours worked over 8 in a single day
  • Double time: 2x pay for hours worked over 12 in a single day
  • Seventh consecutive day: 1.5x for the first 8 hours, 2x for hours beyond 8
  • Weekly overtime also applies: 1.5x for hours over 40 in a week

California uses the calculation method most favorable to the employee. If daily overtime and weekly overtime overlap, the employee gets whichever produces the higher pay.

Example: A California worker earning $30/hour works four 10-hour days (Mon-Thu):

  • Daily OT: 4 days x 2 hours x $45 = $360 in overtime
  • Weekly hours: 40 total - no weekly OT applies
  • The daily OT provides a benefit the worker wouldn’t get under federal law alone

Alaska

  • Daily overtime: 1.5x after 8 hours per day
  • Weekly overtime: 1.5x after 40 hours per week
  • Exemptions differ from federal: Alaska has its own salary threshold and duties tests

Colorado

  • Daily overtime: 1.5x after 12 hours per day (or 12 consecutive hours)
  • Weekly overtime: 1.5x after 40 hours per week
  • Colorado also requires overtime for work during meal periods if the employee isn’t completely relieved of duties

Nevada

  • Daily overtime: 1.5x after 8 hours per day if the employee earns less than 1.5x the state minimum wage
  • Workers earning more than 1.5x minimum wage are only covered by the weekly 40-hour threshold

Oregon

  • Manufacturing workers: daily overtime after 10 hours
  • All other non-exempt workers: standard 40-hour weekly threshold
  • Agricultural workers have specific seasonal overtime provisions

Connecticut, Massachusetts, Rhode Island, and Maine

These states have specific rules around premium pay for Sunday or holiday work, though these have been evolving. Connecticut phases out Sunday premium pay for retail workers. Check current state law as these provisions change frequently.

State Minimum Salary Thresholds for Exemption

Several states set their own salary thresholds for overtime exemption, often higher than the federal minimum:

StateWeekly Salary Threshold (2024)Annual Equivalent
California$1,280 (26+ employees)$66,560
New York (NYC)$1,200$62,400
New York (rest of state)$1,124.20$58,458
Washington$1,302.40$67,724
Colorado$1,057.69$55,000
Maine$816.35$42,450
Federal$844$43,888

If you’re salaried and earn between the federal and your state threshold, your state law may make you eligible for overtime even though federal law wouldn’t.

Industries With Special Rules

Healthcare

  • The FLSA allows hospitals and residential care facilities to use a 14-day work period instead of a 7-day workweek under the “8 and 80” system
  • Under this system, overtime is owed for hours over 8 in a day or over 80 in a 14-day period
  • California’s daily overtime rules still apply to healthcare workers in California

Agriculture

  • Agricultural workers were historically exempt from federal overtime requirements
  • This is changing at the state level: Washington phases in overtime for farmworkers (40-hour threshold by 2024), and California implemented agricultural overtime fully by 2025

First Responders

  • Police and firefighters have special FLSA overtime rules with longer work periods (up to 28 days for fire, 28 days for police)
  • Overtime kicks in at different thresholds: 212 hours per 28-day period for firefighters, 171 hours for police

Domestic Workers

  • Live-in domestic workers are exempt from FLSA overtime requirements
  • However, several states (including California, New York, Hawaii, and Massachusetts) have enacted domestic worker bills of rights that provide overtime protections

How Overtime Pay Is Calculated

The “regular rate” used to calculate overtime isn’t always your base hourly rate. It must include:

  • Included: Base hourly pay, non-discretionary bonuses, shift differentials, commissions, piece-rate pay
  • Excluded: Discretionary bonuses, gifts, vacation/sick pay, expense reimbursements, employer benefit contributions

Example: You earn $20/hour and received a $500 non-discretionary production bonus for the week. You worked 45 hours.

  1. Total straight-time compensation: (45 x $20) + $500 = $1,400
  2. Regular rate: $1,400 / 45 hours = $31.11/hour
  3. OT premium: 5 hours x ($31.11 x 0.5) = $77.78
  4. Total pay: $1,400 + $77.78 = $1,477.78

Note: the OT premium is only the additional 0.5x, since the regular rate already accounts for the straight-time pay for all 45 hours.

Common Employer Violations

Overtime violations are among the most common wage theft complaints. Watch for:

  • Misclassification as exempt: Giving a worker a “manager” title without actual managerial duties to avoid paying overtime
  • Off-the-clock work: Requiring employees to answer emails, set up, or clean up outside recorded hours
  • Improper averaging: Averaging hours across two or more workweeks
  • Comp time instead of pay: Private-sector employers cannot substitute comp time for overtime pay (government employers can)
  • Unapproved overtime: Employers must pay for all hours worked, even if overtime wasn’t pre-approved. They can discipline the employee, but they must pay the overtime.

What to Do If You’re Not Being Paid Correctly

  1. Document everything: Keep your own records of hours worked, including start/stop times and any off-the-clock work
  2. Review your pay stubs: Verify overtime hours and rates match your records
  3. Check your classification: If you’re classified as exempt but don’t meet all three tests (salary basis, salary level, and duties), you may be misclassified
  4. Raise it with HR first: Many employers correct errors when brought to their attention
  5. File a complaint: Contact your state labor department or the federal Wage and Hour Division (WHD). Complaints can be filed anonymously.
  6. Statute of limitations: Federal claims must be filed within 2 years (3 years for willful violations). State deadlines vary - California allows 4 years.

Key Takeaways

  • Federal law: Overtime kicks in at 40 hours/week for non-exempt workers
  • California, Alaska, Nevada: Have daily overtime provisions - you don’t need to hit 40 weekly hours
  • State salary thresholds: May be significantly higher than federal - check your state
  • Your “regular rate” includes bonuses and differentials, not just base pay
  • Employers must pay for all hours worked, even unapproved overtime
  • Keep your own records - don’t rely solely on your employer’s timekeeping system

Try the calculator: overtime calculator