Overtime Pay Laws By State: A Complete Guide to US Overtime Regulations

What Are Overtime Laws in the US?

In the United States, overtime pay laws require that employees be paid extra for working beyond a standard 40-hour workweek. Under the FLSA, employees who work more than 40 hours in a week are entitled to 1.5 times their regular hourly rate, unless they fall under specific exemptions such as salaried employees in certain managerial or executive positions. Accurately recording when these thresholds are crossed is essential for compliance — something the WebWork Overtime Hours Tracker does automatically, eliminating manual calculations.

Federal Overtime Pay Laws

The FLSA is the cornerstone of federal overtime regulations . According to these laws, employees must receive time and a half for any hours worked beyond the 40-hour threshold. However, certain exemptions exist for employees whose roles involve decision-making, supervision, or specialized knowledge, and they are not entitled to overtime pay. Key Points of Federal Overtime Pay Laws:

• Regular overtime rate is 1.5 times the regular hourly rate.
• Exempt employees (salaried workers) are not entitled to overtime, based on their job duties and salary.
• Employees earning less than $35,568 annually (or $684/week) are generally entitled to overtime.

State-Specific Overtime Pay Laws

While the FLSA establishes a baseline for federal overtime pay , individual states can enact more favorable laws for workers, such as requiring overtime pay after 8 hours of work per day rather than just 40 hours in a week.

Examples of State-Specific Overtime Rules

California Overtime Law Requires overtime pay for hours worked over 8 in a day, in addition to the 40-hour per week rule. Colorado Overtime Law Mandates overtime pay for hours worked beyond 12 hours in a day, or 40 hours per week, whichever results in the higher pay. Nevada Overtime Law Requires overtime pay for any hours worked over 8 hours in a single day if the employee earns less than 1.5 times the minimum wage. Some states, like Alabama and Georgia, adhere strictly to the federal rate of $7.25 per hour and don't have additional overtime rules, but others provide a higher rate or more comprehensive protections.

How Does Overtime Pay Work in the US?

Overtime is generally calculated as 1.5 times the employee's regular hourly rate for any hours worked beyond 40 hours in a workweek. Here's how overtime pay works:

Hourly Employees

For these workers, overtime is straightforward. If an employee works 45 hours in a week, they are entitled to 5 hours of overtime pay. Example Calculation for Hourly Employee:

• Regular hourly rate: $15/hour
• Overtime pay: $22.50/hour (1.5 times the regular rate)
• Hours worked: 50 (40 regular + 10 overtime)
• Total pay for the week: $15/hour x 40 hours + $22.50/hour x 10 hours = $750 + $225 = $975

Salaried Employees

Salaried employees may or may not be entitled to overtime, depending on their exempt status . If they don't meet the salary or duties test, they should receive overtime pay.

Who Qualifies for Overtime Pay in the US?

Most hourly employees are entitled to overtime pay, but certain salaried employees may be exempt from overtime pay based on their role, salary, and job responsibilities.

Exempt vs. Non-Exempt Employees

• Non-exempt employees: Typically hourly workers who are entitled to overtime pay.
• Exempt employees: Generally salaried workers in executive, administrative, or professional roles who meet the salary test and perform specific job duties.

Overtime Pay Rules for Salaried Employees

Salaried employees in certain positions may be exempt from overtime pay. To determine if a salaried employee is exempt, employers must consider both their salary level and the job duties they perform.

Exemption Criteria

• Salary level: If an employee earns more than $35,568 annually ($684 per week), they may qualify for an exemption.
• Job duties: Employees must perform executive, administrative, or professional duties to be considered exempt. If these criteria are not met, the employee is non-exempt and entitled to overtime pay.

Industry-Specific Overtime Rules

Certain industries have specific overtime laws and regulations:

Transportation

Truck drivers and other transportation workers are subject to Federal Motor Carrier Safety Administration (FMCSA) rules, which may override state laws.

Healthcare

Healthcare workers like nurses may have special provisions regarding on-call hours and shift lengths, and states may vary on rules for healthcare workers' overtime pay.

Agriculture

Agricultural workers have distinct overtime rules under both federal and state regulations.

Overtime Pay Calculations in Special Cases

There are a variety of scenarios in which overtime pay calculations differ, such as for multiple rates of pay or special pay types like commissions or bonuses .

Overtime Laws and Regulations in the US by State

Each state has its own set of overtime laws that apply to workers in that state. Some states follow the federal minimum wage and overtime standards , while others have enacted stricter rules for protecting workers. Refer to the state-by-state table below to find out how your state handles overtime pay regulations.

State-Specific Overtime Pay Rates

Conclusion

Overtime pay laws protect employees’ right to fair compensation for extra hours worked, but keeping up with federal and state rules can be complex. While laws define the rates and thresholds, accurate tracking is what ensures compliance. The WebWork Employee Overtime Hours Tracker helps businesses do just that — automatically logging overtime, applying the correct rules, and storing secure records for payroll and audits.