Overtime laws by state

Summaries of the federal Fair Labor Standards Act (FLSA), employee classification options, and state-specific overtime laws can be found below.

Important: If you use Gusto Time Tracking, refer to the regulations for the state of your employees' assigned work location in Gusto.

Employee classification options—hourly, salary, commission

Your employees can be classified in different ways based on their salary and the type of work that they do. Once you determine your employee's correct classification, make sure their status is entered correctly in your account. If their status changes, you can update it in their employee profile.

Keep in mind: Most employees are not exempt from overtime, and misclassifying your employees can result in decreased employee morale and having to pay historical wages.

If you're not sure how your employees should be classified, the Department of Labor has published some helpful guidelines.

Customers on Gusto's Plus and Premium plan have access to HR Pros who can help navigate tricky wage/hour rules—upgrade your plan at any time.

Generally, there are three classifications:

Hourly/Eligible for overtime (Hourly/Non-exempt)

Earns wages based on the number of hours the employee works and earns overtime pay when applicable. This is the most common classification, as most employees in the U.S. are required to be paid at least the federal minimum wage for all hours worked plus overtime pay at one and one-half times the regular rate of pay for all hours worked over 40 hours in a workweek.

Note: Minimum wage requirements can vary by state.

Salary/Eligible for overtime (Salary/Non-exempt)

Earns a fixed salary if they work 40 hours or less per week. Earns overtime if they work more than 40 hours per week (regulations vary per state).

Salary/No overtime (Salary/Exempt)

Earns a fixed salary regardless of how many hours the employee works. Some employees may be exempt from overtime pay if they're employed as an executive, administrative, professional, or outside sales, as well as certain computer employees. However, job titles alone do not determine exempt status.

To be exempt from overtime, employees-specific job duties must meet a certain set of requirements, and they generally should be paid a salary of at least:

Until June 30, 2024: $684 per week (equivalent to $35,568 per year for a full-year worker)
From July 1, 2024 - December 31, 2024: $844 per week (equivalent to $43,888 per year)
January 1, 2025 and forward: $1,128 per week (equivalent to $58,656 per year)

Note: Salaried employees are not eligible for overtime pay.

Keep in mind: The DOL permits employers to use non-discretionary bonuses and incentive payments (commission wages, sales incentives, and other rewards), as well as housing allowances for certain ministers/pastors, to satisfy up to 10 percent of the standard salary level.
- If you have an employee that's receiving a commission or other types of incentive payments to help meet the standard salary level, check the box in their Gusto account, "This employee will receive commissions or other types of additional compensation."
  - Commissions and other types of additional compensation can be added each time payroll is run.

Commission Only/Eligible for overtime (Commission Only/Non-exempt)

Earns wages based only on commission. Commission-only employees need to make at least minimum wage for hours worked.

If you have your payroll on Autopilot®, you'll need to enter a commission before the payroll runs—they're set to a $0 salary in Gusto, so they will not be paid if no commission is entered.

Commission Only/No overtime (Commission/Exempt)

Earns wages based only on commission. Some employees may be exempt from overtime pay if they're employed as an executive, administrative professional, or outside sales, as well as certain computer employees. However, job titles alone do not determine exempt status.

To be exempt from overtime, employees specific job duties must meet a certain set of requirements, and they generally should be paid at least a salary basis of:

Until June 30, 2024: $684 per week (equivalent to $35,568 per year for a full-year worker)
From July 1, 2024 - December 31, 2024: $844 per week (equivalent to $43,888 per year)
January 1, 2025 and forward: $1,128 per week (equivalent to $58,656 per year)
If you have your payroll on Autopilot®, you'll need to enter a commission before the payroll runs—they're set to a $0 salary in Gusto, so they will not be paid if no commission is entered.

S-Corp owners

Review this article to set up an employee as an S-Corporation owner.

Default working hours for salaried employees

When you update default hours, this amount will automatically appear for your salaried employee every time you run payroll. Updating default hours will not change the employee’s gross pay per pay period—this is useful if your employee does not work a standard 40-hour workweek.

Note: The default hours you add will be per pay period to align with the pay schedule your company has set up.

Add default hours for salaried employees

Sign in to Gusto.
Click the People section.
Click your employee’s name.
Go to the Pay tab.
Scroll to the Compensation section and click edit next to "Default hours".
- If you do not see this section, you may not have the required admin permissions. Reach out to the primary admin on the account to update your permissions.
Enter your employee's default hours to be reported per pay period.
Click Save.

The next time you run payroll, your employee's default hours will be entered automatically. You can change this amount while running payroll if your employee worked more or less than the default number of hours set.

If you do not set custom default hours, the default hours recorded on payroll for salaried employees will be calculated based on the number of company pay periods in the year and the standard of 2,080 annual working hours.

The list below contains the different pay periods and their corresponding default hours set for salaried employees.

Every week: 40 hours
- 52 pay periods
Every other week: 80 hours
- 26 pay periods
Twice a month: 86.67 hours
- 24 pay periods
Monthly: 173.33 hours
- 12 pay periods

You can also edit these hours in payroll if they need to be adjusted for the pay period.

Example: There's a total of 2,080 working hours per year. Joe is paid every other week, for a total of 26 pay periods in the year. 2,080 total annual hours divided by 26 pay periods equals 80 hours per pay period.

Fair Labor Standards Act (FLSA) definition and types of overtime and overtime laws by state

Summaries of the federal Fair Labor Standards Act (FLSA) and state-specific overtime laws can be found below.

Important: If you use Gusto Time tracking, refer to the regulations for the state of your employees' assigned work location in Gusto.

Fair Labor Standards Act (FLSA)

The Department of Labor states:

“For covered, nonexempt employees, the Fair Labor Standards Act (FLSA) requires overtime pay to be at least one and one-half times an employee's regular rate of pay after 40 hours of work in a workweek.

Some exceptions apply under special circumstances to police and firefighters and to employees of hospitals and nursing homes. Additionally, workplaces that are governed by collective bargaining agreements may be exempt from the FLSA and will have separate overtime standards that they will need to follow.

Some states have their own overtime laws. In cases where an employee is subject to both the state and federal overtime laws, the employee is entitled to overtime according to the higher standard (i.e., the standard that will provide the higher overtime pay).

Extra pay for working weekends or nights is a matter of agreement between the employer and the employee (or the employee's representative).”

Types of overtime

The federal baseline for overtime is 1.5 x RRP (regular rate of pay) for all hours over 40 in a week. More information about overtime can be found here.

Overtime type	Hourly rate multiplier (RRP= regular rate of pay)
Weekly overtime	1.5 times RRP
Daily overtime	1.5 times RRP
Daily double overtime	2.0 times RRP
7th consecutive day of any one workweek	1.5 times RRP

State overtime laws

This table was last revised September 2023

State	Overtime occurs after...	Overtime calculation (RRP = regular rate of pay)	Explanation
Alabama	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Alaska	Weekly: 40 hours Daily: 8 hours	Weekly: 1.5 x RRP for all hours over 40 in a week. Daily: 1.5 x RRP for all hours over 8 in a day.	Weekly: Refer to FLSA definition. Daily: Employees who work more than 8 hours during any workday will earn overtime, paid at 1.5x their regular rate of pay for any time over 8 hours worked.
Arizona	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Arkansas	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
California	Weekly: 40 hours Daily: 8 hours Daily Double OT: 12 hours 7th consecutive day: All hours	Weekly: 1.5 x RRP for all hours over 40 in a week. Daily: 1.5 x RRP for all hours over 8 in a day. Daily Double OT: 2 x RRP for all hours over 12 a day. *7th consecutive day:** 1.5 x RRP for the first 8 hours of work on the 7th day of work in any workweek, regardless of the number of hours worked during the previous 6 days AND 2 x RRP for all hours over 8 on the 7th day.	Weekly: Employees are eligible to earn overtime on a weekly basis. Employees who work more than 40 hours during any workweek will earn overtime, paid at 1.5x their regular rate of pay for any time over 40 hours worked. Daily: Employees who work more than 8 hours during any workday will earn overtime, paid at 1.5x their regular rate of pay for any time over 8 hours worked. Daily Double OT: Employees who work more than 12 hours during any workday will earn overtime, paid at 2x their regular rate of pay for any time over 12 hours worked. *7th consecutive day: On the 7th consecutive day worked, employees will earn overtime, paid at 1.5x their regular rate of pay. Employees who work more than 8 hours on the 7th consecutive day worked will earn overtime, paid at 2x their regular rate of pay for any time over 8 hours worked. We recommend using outside counsel to better understand how the two rules interact.
Colorado	Weekly: 40 hours Daily: 12 hours	Weekly: 1.5 x RRP for all hours over 40 in a week. Daily: 1.5 x RRP for all hours over 12 in a day Without regard to start and end times of the workday, whichever calculation results in the greatest payment of wages.	Weekly: Refer to FLSA definition. Daily: Employees who either (i) work 12 hours in a workday; or (ii) work 12 or more consecutive hours (regardless of workday) will be eligible for overtime, paid at 1.5x their regular rate of pay for any time over 12 hours worked.
Connecticut	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Delaware	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Florida	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Georgia	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Hawaii	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Idaho	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Illinois	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Indiana	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Iowa	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Kansas	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Unless exempt from the FLSA, refer to the FLSA definition.
Kentucky	Weekly: 40 hours 7th consecutive day: All hours	Weekly: 1.5 x RRP for all hours over 40 in a week. 7th consecutive day: 1.5 x RRP for all hours on the 7th day of a week.	Weekly: Refer to FLSA definition. 7th consecutive day: On the 7th consecutive day worked, employees will earn overtime, paid at 1.5x their regular rate of pay for all hours worked on the 7th day.
Louisiana	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Maine	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Maryland	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Massachusetts	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Michigan	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Minnesota	Weekly: 48 hours *There are exceptions for certain industries, including retail/service and healthcare.	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Unless exempt from the FLSA, refer to the FLSA definition.
Mississippi	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Missouri	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Montana	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Nebraska	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Nevada	Weekly: 40 hours Daily: 8 hours during any consecutive 24-hour period.*	Weekly: 1.5 x RRP for all hours over 40 in a week. Daily: 1.5 x RRP for all hours worked over 8 in a period of 24 consecutive hours that begins when the employee starts work.*	Weekly: Refer to FLSA definition. Daily: Qualified employees who work more than 8 hours during any consecutive 24-hour period will earn overtime, paid at 1.5x their regular rate of pay. Qualifies for daily overtime with 1.5 x RRP only if: Employee pay is less than $10.875/ hour and employer offers qualifying health benefits* Employee pay is less than $12.375/ hour and employer does not offer qualifying health benefits.
New Hampshire	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
New Jersey	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
New Mexico	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
New York	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
North Carolina	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
North Dakota	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Ohio	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Oklahoma	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Oregon	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Pennsylvania	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Overtime for salaried non-exempt employees—a new law went into effect Aug 5, 2022. Before you can calculate overtime, calculate the regular rate of pay (RRP), which is found by dividing the employee's total earnings* by 40 hours. Total earnings are all wages, including non-discretionary bonuses, commissions, shift differentials, and other incentive pay. To find their overtime pay, multiply their regular rate by the hours of overtime they worked and then by time and one-half. Add their weekly salary to their overtime pay. Scroll to the Overtime FAQs* section of this Ohio resource to see the math—click the “I pay a non-exempt salaried employee a salary of $1,000 per week. The employee worked 50 hours last week, how much must they be paid for that week of work?” dropdown. Overtime for ohurly employees With few exceptions, hourly employees who work more than 40 hours a week must be paid time and a half (1.5x) for all hours over 40.
Rhode Island	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
South Carolina	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
South Dakota	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Tennessee	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Texas	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Utah	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Vermont	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Virginia	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Washington	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Washington DC	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
West Virginia	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Wisconsin	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.
Wyoming	Weekly: 40 hours	Weekly: 1.5 x RRP for all hours over 40 in a week.	Weekly: Refer to FLSA definition.

Examples of overtime calculations

Full-time employees

Standard full-time hours are determined as 8 hours per day x 40 hours per week x 52 weeks in a year = 2080

Annual salary / annual hours (2080 standard full-time hours)
- Example: $45,000 salary / 2080 standard hours = $21.63 hourly rate

Part-Time Employees

Annual salary / total annual hours (# of hours worked x 52 weeks)

Example: Employee works 25 hours per week
- 25 x 52 = 1,300 hours
- Annual salary: $45,000
- $45,000/1,300 = $34.61 hourly rate

Daily Overtime (OT) and Double Time (DT) calculations

More than 8 hours in a single workday:

OT in excess of 8 hours
Total single-shift hours less than or equal to 12 hours – 8 = time paid at overtime rate

More than 12 hours in a single workday:

This example is related to California's state overtime rules. Refer to the table for your state overtime rules.

DT in excess of 12 hours
Total single-shift hours more than 12 hours = time paid at double-time rate

Seven days in a row within a single pay period:

OT after working 8 hours on the 7th day
Total hours over 40 worked in a workweek (excluding any time worked on the 7th consecutive day of work) = time paid at the overtime rate
All hours up to 8 hours worked on the 7th day of the workweek = time paid at the overtime rate

Note: If your employee earns additional earnings, they may be included in overtime calculations. To learn more, view our article on how to calculate the regular rate of pay.