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Overtime basics: weekly vs daily rules by state

Under the federal Fair Labor Standards Act (FLSA), covered nonexempt employees must be paid at least time and a half their regular rate for hours over 40 in a workweek. Some states also require daily overtime. This isn't legal advice. Check your state.

The federal weekly rule

The FLSA runs on a workweek, not a pay period. A workweek is a fixed, regularly recurring period of 168 hours: seven consecutive 24-hour periods. It can start on any day and at any hour, and it doesn't have to match the calendar week. You can set different workweeks for different groups. You can't average hours across two or more weeks. A 50-hour week is 10 hours of overtime even if the week before was 30.

The Act doesn't require overtime just because the work fell on a Saturday, Sunday, holiday, or regular day of rest. Those hours count toward the 40 only if they're hours worked. There's also no federal daily overtime. An 11-hour Tuesday and a 5-hour Wednesday is 16 hours, all at the regular rate, unless the week as a whole goes over 40 or a state daily rule applies.

Where both federal and state overtime apply, the employee is entitled to the standard that pays more.

Daily overtime in four states

A few states add a daily rule on top of the weekly one. Other states or industries can have their own rules, and exemptions exist in each of the states below. This isn't legal advice. Check your state.

California

Nonexempt employees generally get time and one-half for hours over 8 in a workday and over 40 in a workweek, and for the first 8 hours on the seventh consecutive day of work in a workweek. Double time applies to hours over 12 in a workday, and to hours over 8 on that seventh consecutive day. California has exceptions, including some alternative workweeks and certain industries.

Alaska

Alaska generally requires time and one-half for hours over 8 in a day and for hours over 40 in a workweek. Hours already paid as daily overtime aren't counted again when you test the 40-hour weekly threshold. Alaska also has exemptions, including some small employers. Confirm the current rule with the Alaska Wage and Hour office.

Nevada

Nevada splits the daily rule by pay rate. As of July 1, 2026, the state minimum wage is $12.00 an hour. Employees paid less than 1.5 times that rate, which is $18.00 an hour, generally get time and one-half for hours over 8 in a workday or over 40 in a workweek, unless a listed exception applies. One common exception is a mutual agreement to work four scheduled 10-hour days in a week. Employees paid $18.00 an hour or more generally get overtime after 40 hours in a workweek, not after 8 in a day. Those dollar amounts change when the minimum wage changes.

Colorado

Colorado requires time and one-half for hours past 40 in a workweek, 12 in a workday, or 12 consecutive hours, whichever results in higher pay. You can't average weeks, and you can't substitute compensatory time off for overtime pay.

How this shows up in the hours file

Firmhours calculates overtime as it builds the payday file from approved days. Hours over 40 in the workweek are overtime. Daily rules for California, Alaska, Nevada, and Colorado are applied for people who work in those states, as stated in the FAQ. The file can carry regular, overtime, and double time hours per person, written as decimals, like 7.93.

Confirm the hours against the rule that applies in each state where people work. Firmhours tracks hours and hands you the file. Your payroll provider pays wages, withholds tax, and files.

Keep the payroll you already run

You don't move payroll to use Firmhours. Keep Gusto, RUN Powered by ADP, Paychex Flex, OnPay, or whichever payroll already imports hours. You approve the days, close the period, and download the file that payroll imports. How that file is built is on Product.

FAQ

Does federal law require daily overtime?

No. The FLSA requires overtime after 40 hours in a workweek, not after a set number of hours in a day. Some states add a daily rule. This isn't legal advice. Check your state.

Which states does Firmhours apply daily overtime rules for?

Hours over 40 in the workweek are overtime. California, Alaska, Nevada, and Colorado daily rules are applied for people who work in those states. Other states or industries can have their own rules.

Does Firmhours run payroll or file taxes?

No. Firmhours tracks hours and hands you the file. Your payroll provider pays wages, withholds tax, and files.

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