When you’re trying to adhere to state regulations and federal overtime laws, it’s easy to miss a step here or there. But there are a few steps any smart business owner can take when managing overtime, starting with understanding both federal and state laws.

Federal overtime laws 

Conceptually, overtime laws are fairly straightforward:

• If an employee works more than 40 hours a week
• Those additional hours are classified as overtime (OT), and 
• The employee is paid a higher rate for those OT hours.

In the U.S., federal overtime laws require companies to pay employees 1.5 times the regular hourly rate for any work over 40 hours per week. There are, of course, exemptions for certain workers, and a crucial piece of managing OT is to understand those exceptions. 

If you’re just learning how to manage overtime effectively, check out our 2021 Overtime Guide, which includes everything from OT incentives to how to calculate an OT hourly rate. 

State overtime laws 

Overtime laws vary from state to state. 

• Many states haven’t passed specific overtime laws
• Some adopt the federal overtime laws set forth in the Fair Labor Standards Act (FLSA), and
• Others pass their own overtime laws, which may have complex rules and regulations. 

As you might imagine, that can cause confusion. In situations where the state and federal overtime laws differ, employers must adopt the law that:

• Pays the employee overtime, if one law requires it and the other doesn’t OR
• Pays the employee overtime at the higher rate, if one of the laws requires a higher rate than the other.

While that can make it tricky for you to determine how to calculate overtime hourly rate, it will ultimately ensure that your employees are getting the best overtime rate they’re owed. 

Overtime laws by state

Below you’ll find overtime laws broken down by state as reported by QuickBooks. If no information is listed, federal laws — such as the 1.5X OT rate for anything in excess of 40 hours — apply.

Alabama overtime law

Governed by the Fair Labor Standards Act. 

Alaska overtime law

Certain employees are exempt from FLSA under a voluntary flexible work plan. It must be signed by the employee and approved by the Alaska DOLWD.

Arizona overtime laws

Governed by the Fair Labor Standards Act. 

Arkansas overtime law

Governed by laws very similar to the Fair Labor Standards Act.

California overtime law

California’s overtime rules apply to residents and out-of-state nonexempt employees temporarily working in the state. The overtime rate is 2X an employee’s regular pay for any hours worked: 

• Over 12 hours in a single day, or 
• Over 8 hours on the 7th day in a row. 

Colorado overtime laws

Colorado employers must pay overtime to nonexempt employees for all hours worked over:

• 40 hours per week
• 12 hours per workday, or 
• 12 consecutive hours.

Connecticut overtime laws

Governed by laws very similar to the Fair Labor Standards Act. 

Delaware overtime law

Governed by the Fair Labor Standards Act. 

Florida overtime laws

Manual laborers paid hourly are entitled to “premium pay” for any hours over 10 worked per day if they are employed by the day, week, month or year. However, the state does not define “premium pay.”

Georgia overtime law

Governed by the Fair Labor Standards Act. 

Hawaii overtime law

Governed by laws very similar to the Fair Labor Standards Act. 

Idaho overtime law

Governed by the Fair Labor Standards Act. 

Illinois overtime law

Governed by laws very similar to the Fair Labor Standards Act. 

Indiana overtime law

Governed by laws very similar to the Fair Labor Standards Act. 

Iowa overtime law

Governed by the Fair Labor Standards Act. 

Kansas overtime law

Employers must pay overtime to nonexempt employees for any hours worked over 46 hours per week.

Kentucky overtime law

Kentucky employers must pay overtime to nonexempt employees for all hours worked:

• Over 40 hours per week, or
• On the 7th consecutive day of any workweek if the employee works 40+ hours.

Louisiana overtime law

Governed by the Fair Labor Standards Act. 

Maine overtime law

Governed by laws very similar to the Fair Labor Standards Act. 

Maryland overtime law

Agricultural employees are exempt from FLSA and may not collect overtime until they have worked 60+ hours in a week. Employees in bowling establishments and some mental health institutions are not entitled to overtime until they’ve worked 48+ hours a week.

Massachusetts overtime law

Governed by laws very similar to the Fair Labor Standards Act. 

Michigan overtime law 

Employees can choose time off as an alternative to overtime pay. The employee must receive at least 1.5 hours off for each hour of OT worked.

Minnesota overtime law

Employers must pay overtime to nonexempt employees for hours worked over 48 per week. 

Healthcare facility employees can agree to overtime for hours worked:

• Over 48 hours in a single workweek, or
• Over 80 hours in a 14-day work period.

Retail and service employers may not need to pay employees overtime if:

• Their regular rate of pay is at least 1.5X Minnesota’s minimum wage, and
• More than half of their pay is earned through commission.

Mississippi overtime law

Governed by the Fair Labor Standards Act. 

Missouri overtime law

Some amusement or recreational establishment employees aren’t entitled to overtime until they’ve worked 52+ hours in a workweek.

Montana overtime law

Farm workers and student employees of seasonal amusement or recreational areas aren’t entitled to overtime pay:

• If they receive room and board, and
• Until the employee works more than 48 hours in a workweek.

Nebraska overtime law

Governed by the Fair Labor Standards Act. 

Nevada overtime laws

Employers must pay overtime to employees who:

• Earn less than 1.5 times the state minimum wage, and
• Work 40+ hours per week or 8+ hours per day. 

Exemptions apply if employees agree to a schedule of 10 hours per day, 4 days a week.

New Hampshire law

Exemptions to overtime laws apply for amusement, seasonal or recreational establishment employers who:

• Operate for 7 months or less per year, or 
• Generate the bulk of their revenue in less than 7 months of the year.

New Jersey overtime law

Governed by laws very similar to the Fair Labor Standards Act. 

New Mexico overtime law

Governed by laws very similar to the Fair Labor Standards Act. 

New York overtime law

Non-resident, nonexempt employees working in New York are entitled to overtime after 44 hours of work per week. Employers must also pay employees for an additional hour of work, at the minimum-wage rate or more, if they’ve worked 10+ hours in a single day.

North Carolina overtime law

Governed by laws very similar to the Fair Labor Standards Act. 

North Dakota overtime law

Taxi drivers are not entitled to overtime until they have worked 50+ hours a week.

Ohio overtime laws

Governed by the Fair Labor Standards Act. 

Oklahoma overtime law

Governed by the Fair Labor Standards Act. 

Oregon overtime laws

Governed by laws very similar to the Fair Labor Standards Act. 

Pennsylvania overtime law

Seasonal farm workers are not entitled to overtime and may not work more than 6 days a week or 10 hours a day.

Rhode Island overtime law

Governed by laws very similar to the Fair Labor Standards Act. 

South Carolina overtime law

Governed by the Fair Labor Standards Act. 

South Dakota overtime law

Governed by the Fair Labor Standards Act. 

Tennessee overtime law

Governed by the Fair Labor Standards Act. 

Texas overtime law

Governed by the Fair Labor Standards Act. 

Utah overtime law

Governed by the Fair Labor Standards Act. 

Vermont overtime law

Governed by the Fair Labor Standards Act for any employers with 2+ employees.

Virginia overtime law

Governed by the Fair Labor Standards Act. 

Washington overtime law

Washington employees can request time off instead of overtime pay.

West Virginia overtime law

County and municipal government employees can request time off instead of overtime pay at a rate of 1.5 hours for each overtime hour.

Wisconsin overtime law

Governed by laws very similar to the Fair Labor Standards Act. 

Wyoming overtime law

Governed by the Fair Labor Standards Act. 

How time tracking can help you manage overtime effectively

No matter what overtime laws your business must comply with, record keeping and time tracking are an important part of the process. Not only can time tracking streamline and standardize processes, but it can also save you time and headaches. 

With Time Tracker, you can:

• View each employee’s total hours
• See daily, weekly and monthly hours as they come in
• Create new schedules with those totals in mind
• Set up rules so you know before an employee goes into OT
• Use historical data to prevent over-scheduling of employees who often works OT
• Ensure payroll costs don’t go over budget

Ready to try Time Tracker for yourself? 

Get started with our 14-day free trial.

The post U.S. Federal and State Overtime Laws: What You Need to Know appeared first on eBillity.