Overtime rules, explained

The Fair Labor Standards Act (FLSA), passed in 1938, is the federal baseline. It requires covered non-exempt employees to be paid 1.5× their regular rate for every hour worked over 40 in a single workweek.

Key definitions:

• Workweek — a fixed, recurring 168-hour period. Employers choose when it starts; once chosen it shouldn't change to dodge OT.
• Regular rate — not just your base hourly wage. It includes non-discretionary bonuses, shift differentials, and commissions divided by total hours worked.
• Hours worked — all time the employee is "suffered or permitted" to work, including pre-shift prep, post-shift cleanup, and short rest breaks under 20 minutes.

FLSA does not require daily overtime, double-time, weekend premiums, or holiday pay. Those exist only where state law or a contract creates them.

California overlays daily and consecutive-day rules on top of the federal weekly rule. For non-exempt employees:

• Over 8 hours in a day — 1.5× the regular rate.
• Over 12 hours in a day — 2× (double-time).
• Over 40 hours in a week — 1.5× (same as FLSA).
• The first 8 hours on the 7th consecutive day of a workweek — 1.5×. Anything beyond 8 on that day — 2×.

You don't stack the daily and weekly rules — the employee gets whichever calculation yields the higher pay for each hour. Practically, that means a 10-hour Monday plus a 10-hour Tuesday plus three 8-hour days gives you 2 hours of daily OT × 2 days = 4 hours of OT, even though weekly hours equal 44 (which would only be 4 OT under FLSA anyway — same answer in this case).

A handful of other states require daily overtime — narrower than California but worth knowing if you work there:

• Alaska — 1.5× over 8 hours/day for employers with 4+ employees (and over 40/week).
• Nevada — 1.5× over 8 hours/day for employees earning less than 1.5× the state minimum wage.
• Colorado — 1.5× over 12 hours/day, over 12 consecutive hours, or over 40/week (whichever is greater).
• Oregon — daily OT for some manufacturing and canning roles.

Washington, Massachusetts, and New York don't have daily OT but have other premiums (Sunday/holiday pay in MA, spread-of-hours in NY). Always check your state's labor department site for current rules.

Overtime law only covers non-exempt employees. To be classified as exempt (and therefore not owed OT), a worker generally has to meet all three of these tests under FLSA:

1. Salary basis — paid a predetermined salary that doesn't fluctuate based on hours or quality of work.
2. Salary threshold — currently $684/week ($35,568/year). The Department of Labor adjusts this periodically.
3. Duties test — primary duties fall into executive, administrative, professional, computer, or outside-sales categories as defined by FLSA regulations.

Job title alone never determines exempt status. A "Manager" who spends 90% of the week stocking shelves is non-exempt regardless of the title. Misclassification is one of the most common wage-and-hour violations.

The Weekly Timesheet tab lets you pick from three overtime modes:

• No overtime — every hour at base rate. Use this for exempt salaried employees or contractors paid a flat rate.
• Standard (40h/week) — federal FLSA. Use this in most states for non-exempt hourly workers.
• California — daily 8/12 plus weekly 40. Use this in California, and as a close approximation for Alaska (substitute 8/day with no double-time threshold).

This calculator is a math tool, not legal advice. For complex situations — fluctuating workweeks, piece-rate jobs, tipped employees, public-sector comp time — consult your state labor department or a wage-and-hour attorney.