Overtime Pay Laws By State

Simply put, you must pay employees 1.5 times their hourly wage for every hour of overtime they give you. Although the federal government regulates overtime pay, many states have their own overtime laws. As an employer, you must understand and follow these laws to avoid penalties.

What is the federal overtime law?

The state law requires the inclusion of all overtime pay, including such pay that might qualify for the federal deduction, in an individual’s taxable income. Overtime pay laws are crucial for ensuring that employees are fairly compensated for their time and effort, especially when they work beyond the standard hours. These laws protect workers from exploitation, promote a balanced work-life environment, and contribute to overall economic stability. Compliance with both federal and state overtime regulations is essential for businesses to avoid legal risks, foster employee satisfaction, and maintain a positive workplace culture.

Best overtime compliance practices for employers

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• To establish a workweek, count 7 days or 168 hours of an employee’s fixed or regularly occurring schedule.
• Agricultural workers have distinct overtime rules under both federal and state regulations.
• Alaska state law also does not cover employers with fewer than four employees.
• Learn more about the department’s efforts to restore and extend overtime protections.

The new tip and overtime tax rules can help employers strengthen employee retention

The state overtime law in Massachusetts follows federal overtime laws in that it requires overtime for hours worked beyond 40 in a workweek. If you pay employees 1.5 times their pay for work on a Sunday or certain holidays, exclude those hours from the calculation of overtime. This rule doesn’t apply to managers, supervisors, or officers whose primary duties are supervisory or managerial. US overtime pay laws are legal guidelines that require employers to pay eligible employees a higher rate when they work longer than the standard workweek. These guidelines protect workers from exploitation and ensure non-exempt employees get paid fairly for additional work.

Exempt vs. Non-Exempt Employees

While OnTheClock has made every effort to ensure the accuracy of the information within this article, we cannot guarantee its accuracy. Before moving forward with any business decision, we encourage you to consult with a qualified professional. We waive liability for the misuse or inaccuracy of any of the information contained herein. Starting Jan. 1, 2025, hospitals in Washington are prohibited from mandating overtime for certain health care workers, including nurses and surgical technicians. Again, use whichever law (federal or state) is more beneficial to your employees.

• Like any labor law topic, you should also speak to an attorney to fully understand the overtime pay laws that apply to your business and employees.
• Ohio follows federal overtime laws and requires overtime for hours worked beyond 40.
• Truck drivers and other transportation workers are subject to Federal Motor Carrier Safety Administration (FMCSA) rules, which may override state laws.
• Vermont’s state overtime law requires overtime pay for employers with two or more employees.

An employee earning guaranteed monthly compensation of $2,000 or more is exempt from the State minimum wage and overtime law. Domestic service workers are subject to Hawaii’s minimum wage and overtime requirements. Additionally, due to the passage of Ballot Measure 1, the minimum wage will further increase to $13 per hour on July 1, 2025. Consequently, the minimum salary for exempt employees will rise to $1,040.00 per week or $54,080.00 per year. The information on this website about laws on overtime in the US is intended to be a summary for informational purposes only. However, laws and regulations regularly change and may vary depending on individual circumstances.

However, many states have overtime regulations that are stricter than the federal rules. Because there are costly penalties for violating these regulations, it’s important to become aware of the overtime laws in each state before you conduct business in a new area. Any work in excess of 12 hours in one day and any work in excess of eight hours on any seventh day of a workweek shall be paid no less than twice the regular rate of pay. Exceptions apply to an employee working pursuant to an alternative workweek adopted pursuant to applicable Labor Code sections and for time spent commuting. West Virginia’s state overtime law requires overtime wages to nonexempt employees for any hours worked beyond 40.

This category includes metrics such as the rule of law, judicial independence, and access to justice. Other factors such as legal framework, human rights protection, and enforcement capacity are also included. For example, the federal Wage and Hour Division of the Department of Labor (DOL) investigates alleged wage violations under the FLSA. Where an employee hasn’t been paid overtime correctly, the Division can recover back wages, liquidated damages, and civil‌ penalties from the employer.

In the remainder of New York State, the threshold is $1,161.65 per week ($60,405.80 annually). Additionally, the state minimum wage increased by $0.50 per hour starting Jan. 1, 2025, affecting the salary thresholds for exempt employees. While the FLSA sets the minimum requirements, states can—and often do—enact more protective laws.

Upon an employee’s departure from the job — whether voluntary or involuntary — all accrued comp time must be compensated in wages at the employee’s regular rate of pay. For private-sector employees, compensatory time is still subject to the FLSA, and nonexempt employees must be paid 1.5 times their regular hourly rate for overtime worked. Regarding comp time, government employers in Massachusetts still have the option to provide comp time in place of overtime pay for employees who work overtime hours. Public sector employees earn 1.5 hours of PTO for each hour of overtime worked. However, private sector employers must comply with the FLSA and compensate nonexempt employees with 1.5 times their regular hourly rate for overtime worked, defined as hours exceeding 40 in a workweek.

The implications of this law might impact businesses of all sizes, affecting their processes involving payroll, taxes, and compliance requirements. Working with a trusted leader such as Paychex can help businesses make the required necessary adjustments to their workplace processes. The annual deduction limit for individuals who have received overtime pay is $12,500 (and $25,000 for joint filers). There are also phase-out limits for adjusted gross incomes (individuals $150,000; married couples filing jointly $300,000), which will lower the benefit. It is agreed that the worker will complete their given overtime pay laws by state tasks in line with their employer’s expectations regardless of how many hours they put in.

However, there are strict rules about which workers are classified in this group, so it’s a good idea to talk to an HR company or employee company about whether your workers are exempt or nonexempt. Public sector employers must ensure that the comp time is used within a reasonable period, and the provision is subject to any applicable restrictions and requirements under Rhode Island state law. The maximum limit for comp time accrual and timeframes for usage remains consistent with previous regulations unless otherwise updated by future legislation. Merit-based comp time is available to exempt employees who are ineligible for overtime under the FLSA.

If a salaried employee’s regular hours are less than 40, they are paid their regular rate for every hour up to 40 and then 1.5 times their regular rate for every hour after 40. The updated rule defines and delimits who is a bona fide executive, administrative and professional employee exempt from the Fair Labor Standards Act’s overtime protections. Effective July 1, 2024, the salary threshold will increase to the equivalent of an annual salary of $43,888 and increase to $58,656 on Jan. 1, 2025.