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.
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
Rate 2: $15/hr
Total hours earned at overtime*
Total hours earned at double overtime*
*Hours earned at overtime/double overtime of the toal 50 hours worked. | Rate 1: $10/hr
Rate 2: $15/hr
Total hours confirmation
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A: Overtime hours at Rate 1
Use the ratio of hours worked at each rate to allocate across rates. Inputs come from Column A.
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.
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.
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.
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
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.
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 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).
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 |
This table was last revised September 2019
State |
Overtime Occurs After... |
Overtime Calculation(RRP = Regular rate of pay) |
Explanation |
Alabama |
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Alaska |
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Arizona |
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Arkansas |
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California |
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Colorado |
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Connecticut |
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Delaware |
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Florida |
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Georgia |
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Hawaii |
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Idaho |
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Illinois |
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Indiana |
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Iowa |
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Kansas |
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Kentucky |
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Louisiana |
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Maine |
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Maryland |
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Massachusetts |
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Michigan |
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Minnesota |
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Mississippi |
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Missouri |
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Montana |
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Nebraska |
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Nevada |
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New Hampshire |
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New Jersey |
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New Mexico |
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New York |
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North Carolina |
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North Dakota |
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Ohio |
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Oklahoma |
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Oregon |
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Pennsylvania |
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Rhode Island |
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South Carolina |
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South Dakota |
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Tennessee |
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Texas |
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Utah |
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Vermont |
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Virginia |
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Washington |
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Washington DC |
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West Virginia |
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Wisconsin |
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Wyoming |
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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.
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.
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 |
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10-12 hours |
30 minutes (a second meal break) |
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Colorado | 30 minute break every 5 hours | 5+ hours | 30 minutes |
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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 |
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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 |
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Illinois | 20 minute break every 5 hours | 7.5+ hours | 20 minutes | Within the first 5 hours of the work shift |
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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 |
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Maine | 30 minute break every 6 hours | 6+ hours | 30 minutes |
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Maryland | 30 minute break every 6 hours | 6+ hours | 30 minutes |
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Massachusetts | 30 minute break every 6 hours | 6+ hours | 30 minutes |
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Minnesota | 30 minute break every 8 hours | 8+ hours | 30 minutes |
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Nebraska | - |
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Nevada | 30 minute break every 8 hours | 8+ hours | 30 minutes |
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New Hampshire | 30 minute break every 5 hours | 5+ hours | 30 minutes |
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New York | 30 minute break every 6 hours | 6+ hours | 30 minutes |
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North Dakota | 30 minute break every 5 hours | 5+ hours | 30 minutes |
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Oregon | 30 minute break every 5 hours | 6 - 14 hours | 30 minutes |
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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 |
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Tennessee | 30 minute break every 6 hours | 6+ hours | 30 minutes | After the 1st hour of the work shift |
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Utah | - |
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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 |
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West Virginia | 20 minute break every 6 hours | 6+ hours | 20 minutes |