Federal law pays time and a half after 40 hours in a week. A few states go further and count hours per day, which can change a paycheck a lot for people who work long shifts. Here are the rules, with one week of 12-hour shifts worked out under each.
Overtime law in the US has two layers. The federal Fair Labor Standards Act (FLSA) sets the floor that applies everywhere. States can add more generous rules on top, and when both apply, the employee gets whichever gives more pay. Most states simply follow the federal rule; four stand out for counting hours per day.
Try it: the Time and a Half Calculator works out a week’s pay from your rate and hours. For a daily-overtime state, choose “Regular and overtime hours” and enter the split worked out below. To total clock-in and clock-out times first, use the Time Card Calculator.
The federal rule: over 40 hours in a workweek
- Non-exempt employees must be paid at least 1.5 times their regular rate for every hour over 40 in a workweek.
- A workweek is a fixed, recurring 168-hour period chosen by the employer, such as Sunday to Saturday. Hours can’t be averaged across weeks.
- There is no federal daily overtime, and no federal requirement to pay more for weekends, nights or holidays.
- The “regular rate” isn’t always just the hourly wage: shift differentials and most non-discretionary bonuses are included, which raises the overtime rate.
- Exempt employees, mainly salaried executive, administrative and professional staff who meet both a salary test and a duties test, aren’t owed overtime.
States with daily overtime
| State | Time and a half | Double time | Notes |
|---|---|---|---|
| California | Over 8 hours in a workday; over 40 in a week; the first 8 hours on the 7th consecutive day of the workweek | Over 12 hours in a workday; over 8 hours on the 7th consecutive day | The most generous rules in the country. |
| Alaska | Over 8 hours in a day or over 40 in a week | – | Doesn’t apply to employers with fewer than 4 employees. |
| Nevada | Over 8 hours in a 24-hour workday (for employees paid less than 1.5 times the state minimum wage); over 40 in a week | – | The workday starts when the employee starts work. Employer and employee can agree to four 10-hour days instead. |
| Colorado | Over 12 hours in a workday, over 12 consecutive hours, or over 40 in a week | – | Whichever calculation pays more applies. Comp time can’t replace overtime pay. |
Rules have exemptions and exceptions for particular jobs and industries, and some cities and union contracts add their own. Check your state labor department for your situation.
One week, four rules
Take a nurse’s aide working four 12-hour shifts in a week, 48 hours, at $20 an hour (time and a half is $30):
| Rule | Regular hours | Overtime hours | Pay for the week |
|---|---|---|---|
| Federal (and most states) | 40 | 8 | 40 × $20 + 8 × $30 = $1,040 |
| Colorado (no shift over 12 hours) | 40 | 8 | $1,040 |
| California (8 regular + 4 overtime each day) | 32 | 16 | 32 × $20 + 16 × $30 = $1,120 |
| Alaska (daily count pays more than weekly) | 32 | 16 | $1,120 |
The same 48 hours pays $80 more under a daily rule, because every hour past 8 in a shift counts. Nevada’s daily rule wouldn’t apply here, since $20 is more than 1.5 times Nevada’s minimum wage, so the federal result stands. Change one shift to 13 hours in California and that 13th hour is paid at double time, $40.
How to work out your own overtime
- Total your hours for each day and for the workweek.
- Apply your state’s daily rule, if it has one, to each day: hours past the daily limit are overtime (and past 12 in California, double time).
- Apply the weekly rule: hours past 40 that weren’t already counted as daily overtime are overtime too. Don’t count the same hour twice.
- Pay regular hours at your rate, overtime hours at 1.5 times, double-time hours at 2 times, and add them up. The calculator does this step for you.
Overtime and the new federal deduction
For tax years 2025 to 2028, workers can deduct the premium part of overtime that the FLSA requires, meaning the extra half in time and a half, not the whole overtime pay. The deduction is capped at $12,500 a year ($25,000 on a joint return) and phases out above $150,000 of modified adjusted gross income ($300,000 joint). It is claimed on the tax return. Social Security and Medicare still apply to all overtime pay, and overtime paid only because of a state rule or a contract doesn’t qualify. In the example above, the federal-rule week has $80 of premium (8 hours × $10). See the IRS page on the no tax on overtime deduction for the full conditions.
Sources
- U.S. Department of Labor, Overtime pay
- California Labor Commissioner, Overtime FAQ
- Alaska Department of Labor, Wage and Hour Act
- Nevada Labor Commissioner, daily overtime bulletins (NRS 608.018)
- Colorado Department of Labor and Employment, COMPS Order
- IRS, What to know about the No Tax on Overtime deduction
Frequently asked questions
Which states have daily overtime?
California (after 8 hours, double time after 12), Alaska (after 8 hours, for employers with 4 or more employees), Nevada (after 8 hours in a 24-hour workday for employees paid less than 1.5 times the state minimum wage) and Colorado (after 12 hours in a workday or 12 consecutive hours). Everywhere else follows the federal weekly rule unless a contract says otherwise.
Is overtime paid for weekends and holidays?
Not by federal law. The FLSA doesn’t require extra pay for weekend or holiday work unless the hours push you past 40 in the workweek. Many employers and union contracts pay a premium anyway.
Can my employer average my hours over two weeks?
No. Under the FLSA each workweek stands alone: 50 hours one week and 30 the next means 10 hours of overtime, even though the two-week total is 80.
Do salaried employees get overtime?
Only if they are non-exempt. Salaried employees who meet the federal tests for an executive, administrative or professional role (a minimum salary plus the duties of the job) are exempt. Being paid a salary alone doesn’t make someone exempt.
Can I take time off instead of overtime pay?
Private employers generally must pay overtime in money under the FLSA; time off in lieu (comp time) is mainly allowed for public-sector employers. Colorado’s rules state explicitly that comp time can’t replace overtime pay.