The scope of “interstate commerce” under the FLSA is quite broad and covers many activities that might seem purely local at first glance. The rule also would have raised the “highly compensated employee” (HCE) threshold from $107,432 to $151,164 by 2025.
Exempt vs. Non-Exempt Employees: Who Gets Overtime?
If your job is eligible for overtime protection under California and Federal overtime law as described above, your employer is required by law to pay you an overtime premium for all qualifying overtime hours worked. If your employer owes you overtime pay, a Department of Labor office in California will work with you to ensure you receive your fair wages for all hours worked. If your job is eligible for overtime protection under Illinois and Federal overtime law as described above, your employer is required by law to pay you an overtime premium for all qualifying overtime hours worked. If Debt to Asset Ratio your employer owes you overtime pay, a Department of Labor office in Illinois will work with you to ensure you receive your fair wages for all hours worked.
State Variations and Additional Protections
As of September 2024, California is the only state in the U.S. to regulate double time pay across specific workweeks. A few states and jurisdictions have daily overtime rules in addition to their weekly, 40-hour overtime requirements. Overtime refers to the extra hours an employee works beyond his or her regular work schedule, typically defined by a threshold such as 40 hours per week. The specific definition of overtime and the compensation rate can vary depending on local labor laws, company policies, or contractual agreements. Keeping accurate records of hours worked each week is crucial, regardless of when employees are paid.
- Overtime laws in Indiana and nationally are designed to prevent workers from being exploited by their employers, with hourly wage earners (particularly those in blue-collar indistries) being the primarily protected group.
- Yes, the law places a cap on how much of an employee’s tips and qualified overtime pay can be used toward the deduction.
- The Department will update this notice with additional information as it becomes available.
- TimeClick’s time tracking system helps you automatically flag potential overtime issues, set alerts, and maintain clean, audit-ready records.
- This guide is intended to be used as a starting point in analyzing state overtime laws and is not a comprehensive resource of requirements.
Tipped Minimum Wage by State – 2025 Guide for Employers
The FLSA contains several other exemptions from the minimum wage and/or overtime pay protections which are not covered in this article. Some states have their own overtime pay laws that may offer extra protections or be different from federal rules. For example, some states have different thresholds for overtime pay, different definitions of exempt vs. non-exempt employees, or different calculations for overtime rates.
Overtime Pay According to the Fair Labor Standards Act (FLSA)
Even if an employee works just 80 hours in a pay period, they could still qualify for overtime. So, in this example, the employee’s total pay for the week would be $475, which includes both their regular pay and overtime pay. While some states have daily overtime limit which entitles any employee who works for more then a certain number of hours in a single day to be paid overtime, the Federal government does not specify a daily overtime limit. Employers must ensure they only report the employee’s eligible overtime, and not OT owed under state law that requires payment of overtime after working more than eight hours. Yes, the law places a cap on how much of an employee’s tips and qualified overtime pay can be used toward the deduction. From 2025 to 2028, individuals who receive qualified tips contra asset account may deduct up to $25,000 annually from their federal taxable income.
Only a few states have minimum salary requirements for exemption that exceed the proposed changes to the FLSA, but more could join the list in the future. Some states also prohibit employers from using bonuses to satisfy part of the minimum salary requirement. Some states have their own employment and overtime laws, while others follow the FLSA. When state and federal overtime laws differ, employers generally must follow the law most favorable to the employee. If your job falls under any of the four categories described above, then you are not covered by federal or Tennessee unemployment regulations and your employer is not required to pay you an overtime premium. If your job falls under any of the four categories described above, then you are not covered by federal or Georgia unemployment regulations and your employer is not required to pay you an overtime premium.
The Duties Test: Why Job Duties Still Matter
When it comes to remote workers who work in different states, the labor laws of the state in which they are physically located and perform work apply. So if your company is based in New York, but your employee is working from how much is overtime California, you would follow California’s overtime laws for that employee. It’s crucial to stay informed on the current overtime regulations in your state.
