Understanding Overtime
Last updated: March 15, 2026
You can find summaries of the federal Fair Labor Standards Act (FLSA) and state-specific overtime laws below.
Fair Labor Standards Act (FLSA)
The Department of Labor mandates that covered, nonexempt employees under the Fair Labor Standards Act (FLSA) must receive overtime pay of at least one and one-half times their regular rate of pay for any hours worked over 40 in a workweek.
Certain exceptions apply to police, firefighters, employees of hospitals and nursing homes, and workplaces governed by collective bargaining agreements. These exceptions may exempt them from the FLSA's overtime regulations, and they may have their own separate overtime standards to adhere to.
Certain states have their own overtime laws. If an employee falls under both state and federal overtime laws, they are entitled to overtime pay based on the higher standard. In other words, they will receive the overtime pay that offers the greater compensation.
Additional pay for working weekends or nights depends on the agreement between the employer and the employee (or their representative).
Types of Overtime
The federal standard for overtime is 1.5 times the regular rate of pay (RRP) for all hours worked beyond 40 in a week.
Here are the hourly rate multipliers for different types of Overtime.
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
State | Overtime requirements | Overtime Calculation | Information |
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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Add overtime hours and overtime holiday hours
Click the Payroll section and select Run Payroll.
Click Run payroll with tax compliance.
Click +Overtime on the total hours (TH) field.
Input the hours worked for holiday pay in the OT (Regular Overtime) field.
Submit payroll.
Calculate overtime pay with one pay rate
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.
Calculating gross wages with overtime
Regular Pay: To calculate your regular pay, multiply the hours you worked (excluding overtime hours) by your regular pay rate.
Overtime Pay: To calculate overtime pay, multiply your regular pay rate by 1.5 for regular overtime or 2 for double overtime. Then, multiply this overtime rate by the number of overtime hours worked. This will give you the total overtime pay.
Gross Wages: When you add the overtime pay to your regular pay, it gives you the total gross wages for the pay period.