The federal baseline for overtime
Under the Fair Labor Standards Act (FLSA), covered non-exempt employees must get at least one and one-half times their regular rate for every hour over 40 in a workweek. The workweek is a fixed, recurring 168-hour period, and hours can’t be averaged across two or more weeks. Federal law doesn’t require overtime just because someone works a weekend or holiday. Overtime can’t be waived by agreement either. For the full walkthrough, see how overtime is calculated.
States can add to that baseline. Most follow the weekly 40-hour rule. A few also count hours by the day, which means a long shift can trigger overtime even in a short week.
States with daily overtime rules
- California. Time and a half for hours over 8 in a workday, over 40 in a workweek, and for the first 8 hours on the seventh consecutive day of work in a workweek. Double time for hours over 12 in a workday and over 8 on that seventh day. The state Labor Commissioner says overtime is owed whether or not it was authorized.
- Alaska. Time and a half for hours over 8 in a day or 40 in a week. The rule doesn’t apply to employers with fewer than 4 employees in the regular course of business, among other exemptions.
- Colorado. Time and a half for work over 40 hours per workweek, 12 hours per workday, or 12 consecutive hours regardless of when the workday starts, whichever pays more. A compliant duty-free meal period can be subtracted when counting the 12 consecutive hours.
- Nevada. Employees paid less than 1.5 times the state minimum wage get time and a half after 8 hours in a workday, unless they’ve agreed to a scheduled four-day, 10-hour week. Everyone covered gets time and a half after 40 hours in a week. The state Labor Commissioner publishes the current daily-overtime threshold each year, so check it when the minimum wage changes on July 1.
Daily overtime examples
- California, 10-hour day. An hourly employee works 10 hours on Monday. That’s 8 hours at the regular rate and 2 hours at time and a half, no matter how many hours they work the rest of the week.
- California, 13-hour day. That’s 8 regular hours, 4 hours at time and a half and 1 hour at double time.
- Colorado, 13-hour day. Hours past 12 in the workday are overtime, so 1 hour is at time and a half, even if the week stays under 40.
- Alaska, 10-hour day. For a covered employee, the 2 hours past 8 in that day are paid at time and a half, even in a short week.
States that follow the weekly 40-hour rule
Most states use the same weekly standard as federal law: time and a half after 40 hours of work in the workweek. New Jersey is a typical example. Its Department of Labor says overtime is paid at time and a half after 40 hours of actual work in a seven-day workweek, that holidays and weekends don’t trigger overtime on their own, and that employees can’t waive overtime even if they’re willing to accept straight time. States often have their own exemptions and industry rules, so check yours.
Overtime mistakes that show up across states
- Counting only the week. In a daily overtime state, a long shift can be owed overtime even in a short week.
- Refusing to pay unapproved overtime. Federal law and state agencies say an announcement that unapproved overtime won’t be paid doesn’t remove the obligation. Enforce the policy through discipline, not pay.
- Treating paid time off as hours worked. Under federal law and in states such as New Jersey and California, holiday or sick pay for hours not worked doesn’t count toward overtime.
- Mixing up workweeks. Pick a fixed workweek and keep it. Each week stands on its own, even on a two-week pay period.
- Missing hours. Open punches and off-the-clock work hide overtime. See our guide to fixing missed punches.
How PunchOutPayroll helps
In PunchOutPayroll you set your daily and weekly overtime rules once, and each person’s regular and overtime hours are split automatically as the week goes. See overtime tracking. Approved hours go out in a payroll-ready file, and you run payroll. See payroll-ready hours or the construction time clock for crews that pile up long days.
Sources and further reading
- U.S. Department of Labor: Fact Sheet #23, overtime pay requirements of the FLSA
- California Labor Commissioner (DIR): Overtime FAQ
- Alaska Department of Labor and Workforce Development: Minimum wage and overtime hours
- Colorado Department of Labor and Employment: COMPS Order #40, effective February 1, 2026
- Nevada Legislature: NRS Chapter 608, including NRS 608.018 on overtime
- Nevada Office of the Labor Commissioner: Daily overtime 2026 annual bulletin
- New Jersey Department of Labor: Wage and hour compliance FAQs for employers
- U.S. Department of Labor: State labor offices