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Mandatory overtime requirements for salaried employees
After 12 hours of work in a day, the employee must be paid double their normal pay rate. All values are displayed in hours with the exception of 7th day pay rate (a multiple), overtime minimum wage (USD). 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. In addition to the exemption for federally covered employment, the law exempts, among others, employees of a retail or service business with gross annual sales or business done of less than $500,000. Premium pay required after 52 hours in seasonal amusement or recreation businesses. In restaurants and hotel restaurants, for the 7th consecutive day of work, premium pay is required at time overtime pay laws by state and one half the minimum rate.
FAQs about overtime rules
Private-sector employers in Hawaii are prohibited from offering compensatory time in lieu of overtime pay, in compliance with the FLSA. Nonexempt employees in the private sector must receive overtime pay at 1.5 times the regular rate of pay for hours worked beyond 40 hours in a workweek. For private-sector employees, offering comp time in lieu of overtime pay is prohibited under the FLSA.
Vermont’s state overtime law requires overtime pay for employers with two or more employees. If you’re in retail, restaurants, or nonprofits, state law might not require OT even when federal law does. New York’s state overtime law requires overtime pay at a rate of 1.5 times the state minimum wage for hours worked beyond 40 for these FLSA-exempt individuals. Executive and administrative employees may be exempt from New York’s overtime requirements if they meet specific criteria, including minimum salary requirements. As of Jan. 1, 2025, the minimum salary threshold for these exemptions is approximately 75 times the state minimum wage, or $1,237.50 per week ($64,350 annually) in New York City, Long Island, and Westchester County.
What is the federal overtime law?
The following list includes a general overview of what state-by-state overtime rules look like. However, it’s important to keep in mind that each state’s laws are generally more nuanced than this overview. Because of this, it’s a good idea to consult with one of our HR experts or an employment lawyer to learn more about what to expect in your state and establish overtime policy for your organization. Employers and employees also need to be ready to respond if a state sets up a different treatment concerning state income taxes for overtime and tips earnings. Take, for example, Colorado, that passed a law in May 2025 that decouples it from the federal tax law.
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. Here’s what employers need to know in each state, including overtime triggers and current minimum wage rates. 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.
It’s important to know that not every state has specific laws on overtime pay. In this case, employers should follow federal laws by default, then state law on top of that. Oregon’s overtime laws are tailored to meet the needs of diverse communities, with differentiated minimum wage rates for urban and non-urban areas.
Understanding Federal Overtime Law
An employee earning guaranteed monthly compensation of $2,000 or more is exempt from the State minimum wage and overtime law. Domestic service workers are subject to Hawaii’s minimum wage and overtime requirements. Additionally, due to the passage of Ballot Measure 1, the minimum wage will further increase to $13 per hour on July 1, 2025. Consequently, the minimum salary for exempt employees will rise to $1,040.00 per week or $54,080.00 per year. 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.
Regarding salaried employees with a schedule of fewer than 48 hours in a workweek, the regular rate of pay per hour is applied for each additional hour worked between 40 and 48 hours. Only hours worked beyond 48 hours are compensated at the overtime rate of 1.5 times the regular rate. Employees in administrative, professional, and executive roles must meet strict compensation and responsibility criteria to be classified as exempt.
The differences between state and federal overtime pay laws may present a compliance hurdle. To avoid penalties and lawsuits, you must proactively review and update your payroll policies. In Rhode Island and Arkansas, emergency responders like EMTs, firefighters, and police officers are exempt from overtime. This same group of employees may receive compensatory time in Texas and Ohio.
Examples of State-Specific Overtime Rules
Repeated willful wage violations can even result in criminal prosecution. Kate holds degrees in law and business management, combined with 8+ years’ experience as a human rights lawyer. Washington law may require double-time pay for “certain public works projects.” And, employers cannot mandate overtime work to registered or licensed practical nurses. Employees who are exempt from overtime under the FLSA might be covered by the state law.
Different workweeks may be established for different employees or groups of employees. Normally, overtime pay earned in a particular workweek must be paid on the regular pay day for the pay period in which the wages were earned. Washington’s state law aligns with federal overtime rules in that employees are eligible when they work over 40 hours. New York has a state overtime law that lines up with the FLSA’s requirement of offering employees overtime pay for hours worked beyond 40 in a workweek. And, some state laws are stricter, triggering overtime pay if an employee works beyond a certain number of hours in a day.
- This guide will help you navigate the federal and state overtime laws, including industry-specific rules and overtime pay calculations.
- It need not coincide with the calendar week, but may begin on any day and at any hour of the day.
- For private-sector employees, comp time off is not permitted under the FLSA.
- The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days.
- The following list includes a general overview of what state-by-state overtime rules look like.
For computer professionals, the minimum hourly wage is set at 3.5 times the state minimum wage, which equates to $58.31 per hour in 2025. Illinois employers should also ensure compliance with any relevant state-specific wage and hour regulations as of 2025. Our team of HR and payroll specialists can guide you through compliance and help you set up accurate, state-specific overtime policies. 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. This article explores overtime rules at the federal level and for each state—including states with daily overtime—to help you understand your obligations.
Department of Labor report of premium pay rules for each U.S. state and territory. 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. For private-sector employees, comp time off in lieu of overtime pay is prohibited under the FLSA. Nonexempt employees must be paid 1.5 times their regular hourly rate for overtime worked, defined as hours worked beyond 40 hours in a workweek.
- Alaska, California, and Nevada require employers to pay employees overtime after working more than 8 hours a day.
- However, laws and regulations regularly change and may vary depending on individual circumstances.
- The rules vary between each state, so it may take anywhere between 8 and 12 hours of work in a single day before the employee gets overtime pay.
- Keep in mind that states could choose to follow the changes to federal law or decouple from these provisions if they currently follow the IRC.
Some require overtime after a certain number of hours in a day, not just a week. Others have unique rules about seventh-day work, industry-specific exemptions, or minimum wage rates that far exceed the federal standard. For employees who are paid commissions, overtime is calculated similarly to the federal law.
Other metrics like education spending, curriculum quality, and technological readiness are also included. Crime and safety are important factors that can impact social, economic, and political stability. This category includes metrics such as homicide rate, robbery rate, incarceration rate, and police-to-citizen ratio. Employers must comply with whichever law—state or federal—is more favorable to the employee.