The federal baseline for overtime is 1.5 x RRP (Regular Rate of Pay) for all hours over 40 in a week. Some states may offer additional overtime pay requirements like daily overtime and others, including the federal base.
Weekly overtime: 1.5 x RRP
Daily overtime: 1.5 x RRP
Daily double overtime: 2.0 x RRP
7th consecutive day of any one workweek: 1.5 x RRP
To see overtime hours and pay for each employee, run the Payroll Journal report.
To review overtime requirements in your state, use the table below.
Important: Overtime may be recalculated if wages are added or changed
After a regular payroll run, if you change or add earnings—such as giving a bonus for an already-paid pay period—we may recalculate the Regular Rate of Pay for the affected weeks.
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).”
This section applies only to federal overtime required by the FLSA
Enter only the federally mandated overtime premium from payrolls run outside of Gusto in the OT Premium field.
Gusto can track overtime only when payroll runs in Gusto
A new law, the One Big Beautiful Bill Act (OBBBA), took effect on January 1, 2025. This law allows employees to deduct certain overtime pay from their federal taxes.
Because of this law, Gusto must report federally mandated overtime premiums on employees’ W-2 forms.
Federally mandated overtime is overtime required by the Fair Labor Standards Act (FLSA). Under the FLSA, non-exempt employees must earn 1.5× their regular rate of pay for all hours worked over 40 in a workweek.
What counts: Time-and-a-half pay for hours worked over 40 per week
What does NOT count:
Daily overtime (for example, California’s overtime after 8 hours in a day)
Double time pay
Overtime paid to exempt employees
Extra overtime required by union agreements or company policy
The overtime premium is only the extra “half” of time-and-a-half pay. It is not the full overtime wage.
Example
Regular rate: $20/hour
Overtime rate (1.5×): $30/hour
Overtime premium: $10/hour (the extra half above the regular rate)
Important: Enter only the overtime premium from the payrolls run outside of Gusto in the OT Premium field, not total wages.
Option 1: If your prior payroll provider shows the federal overtime premium as a separate amount, use that number.
Option 2: If your payroll reports do not separate the overtime premium, use the formula and example below to help determine the correct premium amount before entering it in Gusto.
Use this formula to find the federal overtime premium only (not total overtime pay): Regular hourly rate × 0.5 × overtime hours (hours over 40 in a week)
Jane worked 52 hours in one workweek.
Her regular rate is $20 per hour.
Step 1: Find overtime hours
52 total hours − 40 = 12 overtime hours
Step 2: Calculate the overtime premium
$20 × 0.5 × 12 = $120
Step 3: Enter the amount in Gusto
Enter $120 in the federally mandated overtime premium field.
Regular rate
Overtime hours (over the regular 40)
Calculation
Federal overtime premium
$20.00
12
$20 × 0.5 × 12
$120.00
$25.00
8
$25 × 0.5 × 8
$100.00
$30.00
15
$30 × 0.5 × 15
$225.00
You must tell Gusto about federally mandated overtime if any of the following apply:
You joined Gusto mid-year
You ran payroll outside of Gusto at any time
You paid overtime before switching to Gusto
You ran at least one non-Gusto payroll that included overtime
Gusto only tracks overtime paid through Gusto. You must provide the overtime premium amounts from any payrolls run outside Gusto.
Enter only the federally mandated overtime premium from payrolls run outside of Gusto in the OT Premium field.
Do not enter:
Full overtime wages (the full 1.5× amount)
Full double-time wages (2× pay)
Regular wages
Overtime amounts from payrolls already run in Gusto
Overtime checklist
If you run payroll in Gusto:
Enter weekly overtime hours when you run payroll.
If you use Gusto Time Tracking, we’ll use your employees’ weekly hours from their timesheets.
Gusto calculates federal overtime premiums for you.
Gusto will report the qualified overtime premiums on employees’ 2026 W-2s.
If you run payroll outside of Gusto:
Find the overtime paid on those payrolls.
Calculate the federally required overtime premium (FLSA only).
Enter only the federal overtime premium amount in Gusto as either:
Historical or prior payrolls (if you're entering them during account setup)
Or, another non-Gusto payroll entry
Regular Rate of Pay (RRP) is a payroll concept under the Fair Labor Standards Act (FLSA) which is a federal law that protects workers by setting standards for their overtime pay and other wage-related protections.
This table was last revised June 2025.
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.
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 (if covered under the FLSA).
46 hours (if exempt from FLSA).
Weekly: 1.5 x RRP for all hours over 40 in a week, if covered under the FLSA.
Weekly: 1.5 x RRP for all hours over 46 in a week, if exempt from the FLSA.
Weekly: Unless exempt from the FLSA (federal law), refer to the FLSA definition.
The 46-hour workweek overtime limit only applies to employees who are not covered under federal law.
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:
40 hours (if covered under the FLSA)
48 hours (if exempt from FLSA)
There are exceptions for certain industries, including retail/service and healthcare.
Weekly: 1.5 x RRP for all hours over 40 in a week (if covered under the FLSA)
Weekly: 1.5 x RRP for all hours over 48 in a week (if exempt from the FLSA)
Weekly: Unless exempt from the FLSA (federal law), refer to the FLSA definition.
The 48-hour workweek overtime limit applies only to employees who are not covered by federal law.
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, based on pay rate
Daily: 8 hours, based on pay rate
Weekly: 1.5 x RRP for all hours over 40 in a week, if paid at least 1.5 x state minimum wage in effect
Daily: 1.5 x RRP for all hours over 8 in a day, if paid less than 1.5 x state minimum wage in effect
Weekly: Employees paid at least 1.5 x the state minimum wage in effect (ex. $18 per hour, $12.00 x 1.5) will be paid overtime at 1.5 x their RRP for all hours over 40 in a week.
Daily: Employees paid less than 1.5 x the state minimum wage in effect (ex. $17 per hour) will be paid overtime at 1.5 x their RRP for all hours over 8 in a 24-hour period.
Note: Mutual agreements between the employee and employer to work a 4–10 schedule (4 days, at 10 hours each day), change the daily OT from over 8 to over 10.
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 Pennsylvania 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 hourly 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.
How your employee is classified determines if they're eligible for overtime pay. If you're not sure how your employees should be classified, the Department of Labor has some helpful guidelines.
More information about employee classifications can be found in these articles under the Changing employee classification type dropdown:
Use the dropdowns below to learn how to calculate overtime.
The rate used for overtime pay varies depending on your payroll schedule and how many pay rates you have. This overtime pay calculation applies to all hourly employees who have only one pay rate.
Regular pay: First multiply your regular hours (overtime hours not included) worked by your regular pay rate to get your regular pay.
Overtime pay: Calculate the overtime rate by first multiplying your regular pay rate by 1.5 (for regular overtime) or 2 (for double overtime). Multiply this overtime rate by the amount of overtime hours to get the overtime pay.
Gross wages: Adding the overtime pay with your regular pay will give your total gross wages for the pay period.
Your employee works 40 regular hours a week at $20 per hour. She decides to work an additional 10 hours in overtime. The following calculation will be used for gross wages:
40 regular hours x $20 regular pay rate = $800 regular pay
10 regular OT hours x ($20 regular pay rate x 1.5) = $300 OT pay
$800 regular pay + $300 regular OT pay = $1,100 total gross wages
This overtime pay calculation applies to hourly employees who have multiple pay rates. If you're using Gusto Time Tracking, this is what multiple pay rates will look like when you run payroll.
Overtime will be calculated using a regular rate of pay based on the weighted average rate—learn more about this calculation here.
Regular pay: First multiply each job rate by the number of job hours worked (overtime hours included), and then add these amounts together. This will give your regular pay amount.
Overtime pay: Calculate your additional overtime amount by first dividing your regular pay by the total hours worked in the pay period (overtime hours included). This will give you the weighted average rate. Multiply this weighted average rate by 50% (for regular overtime) or 100% (for double overtime), and then multiply this rate by the amount of overtime hours to get the additional overtime pay.
Gross wages: Adding the overtime pay with your regular pay will give your total gross wages for the pay period.
Your employee works as a waiter 40 regular hours a week at $16 per hour. He also works as a bartender 1 hour a week at $11.80 per hour. He decides to work an additional 2.48 hours as a waiter in overtime. The following calculation will be used for gross wages:
40 regular waiter hours + 2.48 OT waiter hours x $16.00 waiter pay = $679.68 total waiter pay
1 bartender hour x $11.80 bartender pay rate = $11.80 bartender pay
$11.80 bartender pay + $679.68 waiter pay = $691.48 regular pay
$691.48 regular pay / 43.48 total hours worked = $15.90 weighted average rate.
$15.90 weighted average x 50% x 2.48 OT hours = $19.72 OT pay
$691.48 regular pay + $19.72 OT pay = $711.20 total gross wages
Note: Paystubs and payroll reports will show a different weighted overtime rate than the process flow in your account. However, the net pay is the same, it's just displayed a little differently. Here's a breakdown using the example above.
Weighted overtime rate calculation shown in the payroll flow
The payroll flow in your account would show the weighted overtime pay as $7.95.
$691.48 total pay at regular rate of pay / 43.48 total hours worked = $15.90 weighted average rate.
$15.90 weighted average x 50% = $7.95
Weighted overtime rate calculation shown on a paystub
An employee's paystub would show the weighted overtime rate as $23.95.
2.48 overtime hours at $16.00 regular rate for waiter hours = $39.68
2.48 overtime hours at $7.95 weighted overtime pay rate = $19.72
$39.68 + $19.72 = $59.40 divided by 2.48 overtime hours = $23.95
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
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
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.
If you pay time-and-a-half for holidays, you'll use the same instructions. If you pay holiday hours at the same rate as regular hours, either set up a holiday pay policy or put all the employee’s hours in the RH (Regular Hours) field.
It's the employer's discretion if you want to have paid time off taken by an employee count toward the calculation of the overtime—these hours are not actually "worked" and, therefore, not considered as hours counted toward overtime under the FLSA.
Click the Pay section and select Run payroll.
Click Run regular payroll.
Click the Overtime field, or the total hours (TH) field if the hourly employee is using multiple pay rates. If you’re using the payroll spreadsheet, click the overtime cell.
Enter the hours worked for holiday pay in the regular overtime fields. Be sure to log hours based on the week they were worked.
Click Add Personal Note to indicate the holiday payment on the employee's paystub.
Finish running payroll.