Time tracking overview

There are a few things to keep in mind when using Gusto's time tracking feature. Use the dropdowns below to learn more.

Head to this article when you're ready to set up time tracking for your employees or contractors, or if you'd like to view a video on this feature. If you're an employee, head to this article to learn about time tracking.

Multiple pay rates with Gusto time tracking

If you're using Gusto Time Tracking and have employees with multiple pay rates, wage calculations and hours worked at each rate can sometimes be difficult to visualize and understand.

Review the table below and explanations beneath it to learn more about how this works in Gusto.

Important: Hours for employees with multiple pay rates are tracked on a per-workweek basis. When reviewing the table, only compare to one workweek's worth of hours, not the total hours from a pay period.

Column A	Column B
What multiple pay rates looks like in Time Tracking	What multiple pay rates looks like in the run payroll flow
Rate 1: $10/hr Total hours: 20 Rate 2: $15/hr Total hours: 30 Total hours earned at overtime* Overtime hours: 5 Total hours earned at double overtime* Double overtime hours: 5 *Hours earned at overtime/double overtime of the total 50 hours worked.	Rate 1: $10/hr Regular hours: 16 Overtime hours: 2 Reference: Explanation A Double overtime hours: 2 Reference: Explanation B Rate 2: $15/hr Regular hours: 24 Overtime hours: 3 Reference: Explanation C Double overtime hours: 3 Reference: Explanation D Total hours confirmation 50 Reference: Explanation E

Explanations for Column B

A: Overtime hours at Rate 1

Use the ratio of hours worked at each rate to allocate across rates. Inputs come from Column A.

The equation: {(Hours at Rate 1) / [(Hours at Rate 1) + (Hours at Rate 2)]} x Total overtime hours
The math: [20 / (20 + 30)] x 5 = 2 hours

B: Double overtime hours at Rate 1

Use the ratio of hours worked at each rate to allocate across rates. Inputs come from Column A.

The equation: {(Hours at Rate 1) / [(Hours at Rate 1) + (Hours at Rate 2)]} x Total double overtime hours
The math: [20 / (20 + 30)] x 5 = 2 hours

C: Overtime hours at Rate 2

To avoid rounding issues, take the difference between total overtime hours (column A) and the overtime hours allocated for Rate 1 (column B). The remainder is allocated to Rate 2.

The equation: (Total overtime hours) - (Overtime hours at Rate 1)
The math: 5 - 2 = 3 hours

D: Double overtime hours at Rate 2

To avoid rounding issues, take the difference between total double overtime hours (column A) and the double overtime hours allocated for Rate 1 (column B). The remainder is allocated to Rate 2.

The equation: (Total double overtime hours) - (Double overtime hours at Rate 2)
The math: 5 - 2 = 3 hours

E: Total hours confirmation

Inputs come from Column B.

The equation: (Regular hours at Rate 2) + (Overtime hours at Rate 1) + (Double overtime hours at Rate 1) + (Regular hours at Rate 2)+ (Overtime hours at Rate 2) + (Double overtime hours at Rate 2)
The math: 16 + 2 + 2 + 24 + 3 + 3 = 50 hours

State overtime laws

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.

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 2019

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 utilizing 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 starting and ending time of the workday, whichever calculation results in the greatest payment of wages.	Weekly: Refer to FLSA definition. Daily: Employees who either (1) work twelve hours in a workday; or (ii) work twelve 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: 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.
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 Nonexempt 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 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.

Meal break laws by state

Meal Break vs. Rest Break

The distinction between meal and rest breaks is that rest breaks are often shorter in time (less than 20 minutes) and considered paid time.

Example: California requires employers provide a paid ten minute rest break to employees who work for 3.5 hours or longer, and California employees are entitled to a paid rest break for every four-hour period.

This article focuses on meal breaks, but rest break requirements also vary by state. Consult specialized employment counsel to ensure you are meeting the rest break requirements within your state.

Meal Break Overview

Many states require a meal break around the middle of a non-exempt employee’s workday.
Employers usually do not have to pay for these meal breaks as long as the employee is completely relieved of any duties.
- If an employee is on a meal break but still responsible for work-related tasks, the employee must still be paid for that break.
Not tracking meal breaks properly is a common work violation and can be very costly. It can put employers at risk of a wage and hour lawsuit.

Meal Break tracking in Gusto

Gusto Time Tracking users: Gusto's system will recognize a missed meal break, but won't add hours that need to be paid to payroll as a result of the missed break.
- If a meal break is missed, you'll need to manually add the meal period premium pay.
- Once meal breaks have been set up, employees can track their meal breaks using Gusto Time Tracking.
Non-Gusto Time Tracking users: If you're not using Gusto Time Tracking, you can pay meal breaks using Gusto's custom earning types.
- Add a custom earning type, and name it “Meal Break” so it's clear on the employee's paystub that this payment is for their meal break.
- When you run payroll in the future, you'll see the Meal Break earning type and can add the amount of wages owed for meal breaks for the pay period for each employee.

States With Meal Break Requirements

The table below includes information about the length of the meal break, when it should be taken, important notes to consider, and Gusto's suggested settings when entering meal break rules for your state.

Important: Consult specialized employment counsel to ensure you are meeting the requirements within your state.

This table was last revised July 2019

State	Suggested Gusto setting	For [X] hours worked in a single workday	Minimum duration of rest break	Time break must be taken	Notes (Exempted industries, waivers, etc)
California	30 minute break every 5 hours	5-10 hours	30 minutes	Before the end of the 5th hour of the work shift	May only be waived if employee works less than 6 hours in a workday. There are some exempted industries
California		10-12 hours	30 minutes (a second meal break)		Second meal may only be waived if first meal was not waived. There are some exempted industries.
Colorado	30 minute break every 5 hours	5+ hours	30 minutes		There are some exempted industries
Connecticut	30 minute break every 5 hours and 30 minutes	7.5+ hours	30 minutes	Between the first two and last two hours of the work shift	There are some exempted industries.
Delaware	30 minute break every 5 hours and 30 minutes	7.5+ hours	30 minutes	Between the first two and last two hours of the work shift	There are some exempted industries.
Illinois	20 minute break every 5 hours	7.5+ hours	20 minutes	Within the first 5 hours of the work shift	There are some exempted industries.
Kentucky	30 minute break every 5 hours	No minimum hours to trigger a meal break, but the law requires a “reasonable” break.	A “reasonable” meal break	Between the third hour and fifth hour of the work shift	Requirement does not apply to collective bargaining agreements. There are some exempted industries.
Maine	30 minute break every 6 hours	6+ hours	30 minutes		Requirement does not apply to collective bargaining agreements. There are some exempted industries.
Maryland	30 minute break every 6 hours	6+ hours	30 minutes		Only applies to certain retail establishments. There are some exempted industries.
Massachusetts	30 minute break every 6 hours	6+ hours	30 minutes		Employees may voluntarily waive the meal break, but any waiver agreement should be in writing.
Minnesota	30 minute break every 8 hours	8+ hours	30 minutes		Requirement does not apply to collective bargaining agreements
Nebraska	-				Employees in some specific industries (e.g. working at an assembling plant) are entitled to a 30+ minute break during each 8 hour shift.
Nevada	30 minute break every 8 hours	8+ hours	30 minutes		Employees may voluntarily waive the meal break, but any waiver agreement should be in writing. Requirement does not apply to collective bargaining agreements.
New Hampshire	30 minute break every 5 hours	5+ hours	30 minutes		Employees may voluntarily waive the meal break, but any waiver agreement should be in writing.
New York	30 minute break every 6 hours	6+ hours	30 minutes		Factory workers have different requirements. Timing requirements may vary depending on when the shift starts.
North Dakota	30 minute break every 5 hours	5+ hours	30 minutes		Employees may voluntarily waive the meal break, but any waiver agreement should be in writing. Requirement does not apply to collective bargaining agreements.
Oregon	30 minute break every 5 hours	6 - 14 hours	30 minutes	If less than 7 hours, between the 2nd and 5th hour. If more than 7 hours, between the 3rd and 6th hour.	Requirement does not apply to collective bargaining agreements. There may be extreme situations where an employer is not required to give a meal break.
		14 - 22 hours	30 minutes (a second meal break)
		22 - 24 hours	30 minutes (a third meal break)
Rhode Island	30 minute break every 6 hours	6+ hours	20 minutes (if more than 6-8 hours) 30 minutes (if more than 8 hours)		There are some exempted industries.
Tennessee	30 minute break every 6 hours	6+ hours	30 minutes	After the 1st hour of the work shift	Employees in certain industries may voluntarily waive the meal break, but any waiver agreement should be in writing. There are some exempted industries.
Utah	-				State employees are entitled to a 30 minute unpaid meal break.
Vermont	30 minute break every 6 hours	No minimum hours to trigger a meal break, but the law requires employees get a “reasonable opportunity” to eat during a work shift.	“Reasonable opportunity” to eat
Washington	30 minute break every 5 hours	5+ hours	30 minutes	Between the 2nd and 5th hour of the work shift	Employees may voluntarily waive the meal break, but waiver agreements should be in writing. There are additional meal break requirements during overtime hours.
West Virginia	20 minute break every 6 hours	6+ hours	20 minutes

Time tracking overview

Explanations for Column B

Fair Labor Standards Act (FLSA)

Types of Overtime

State Overtime Laws

State

Overtime Occurs After...

Overtime Calculation

(RRP = Regular rate of pay)

Explanation

Meal Break vs. Rest Break

Meal Break Overview

Meal Break tracking in Gusto

States With Meal Break Requirements