One U.S. state has (by far) the most generous overtime pay laws
For workers who are paid hourly, overtime compensation can be a significant boon to someone’s earnings.
For a large portion of the American workforce, making ends meet each month can be a matter of dollars and cents. In fact, according to a 2023 study by Payroll.org, 78% of the 38,605 respondents polled selfreported living “paycheck to paycheck.”
It’s no surprise, then, that 57% of employees want the opportunity to work overtime, according to 2022 data from Qualtrics. When it comes to overtime pay, though, not all states have equally advantageous policies.
WHAT IS OVERTIME PAY & HOW DOES IT WORK?
When most people think of overtime, the phrase “time and a half” comes to mind. This is because the Fair Labor Standards Act (FLSA) mandates that all non-exempt (i.e., hourly) workers be paid 1.5x their typical wage for any hours worked over 40 in a week. The FLSA is a federal law, so it applies in all U.S. states and territories.
Some states, though, have more specific overtime pay laws that allow workers to receive time and a half — or even double time — in other scenarios, regardless of their total weekly hours.
WHICH STATE HAS THE BEST OVERTIME PAY LAWS?
California stands out as the U.S. state with the most comprehensive — or generous, if you prefer — overtime pay system. Of course, the FLSA applies, so workers receive 1.5x pay for any hours over 40 worked in a week, but the following Californiaspecific overtime rules also apply:
1.5x wages for any hours over 8 and up to 12 (inclusive) per day1.5x wages for the first 8 hours worked on any 7th consecutive day 2x pay for any hours over 12 per day 2x pay for any hours worked over 8 on any 7th consecutive day
You can see a full run-down of California’s overtime pay system on the state’s website.
Interestingly, a new law called
AB 1228, which took effect on April 1, 2024, guarantees all fast-food workers in the state of California a minimum wage of $20 per hour, meaning that fast-food employees can make $30 to $40 per hour during overtime work.
This represents an unprecedented earning opportunity for newer members of the workforce, as fast-food positions are one of the few job types that young people can land without any prior work experience.
STATES THAT MANDATE OVERTIME PAY BEYOND TIME AND A HALF FOR 40+ HOURS
In these states, the FLSA guarantees 1.5x pay for all hours worked beyond 40 in a week, but these additional overtime pay scenarios also apply:
Alaska: 1.5x wages for any
● hours over 8 per day (minimum overtime wage: $17.60)
Colorado: 1.5x wages for any
● hours over 12 per day and 12 hours consecutive (minimum overtime wage: $21.63)
Kentucky: 1.5x wages for any
● hours worked on the 7th day of a 7-day workweek (minimum overtime wage: $10.88)
Nevada: 1.5x wages for any
● hours over 8 per day (minimum overtime wage: $16.88; $18 beginning July 1, 2024)
Rhode Island: 1.5x wages on
●
Sundays and holidays, with certain industries excepted (minimum overtime wage: $21)
Virgin Islands: 1.5x wages for
● any hours over 8 per day and any hours worked on a 6th or 7th day in a row (minimum overtime wage: $15.75)
STATES THAT DON’T OFFER EXTRA OVERTIME PAY
The following states have not enacted legislation to provide additional overtime benefits beyond those guaranteed nationwide by the FLSA, so non-exempt workers receive 1.5x pay only for hours worked beyond 40 per week.
Here’s what minimum overtime wages come to for each of those states (although these may be even higher in certain cities and counties that have local minimum wages):
Arizona: $21.52 minimum
● overtime wage
Arkansas: $16.50 minimum
● overtime wage
Connecticut: $23.54 minimum
● overtime wage
Delaware: $19.88 minimum
● overtime wage
District of Columbia: $25.50
● minimum overtime wage
Florida: $18 minimum overtime
● wage
Georgia: $10.88 minimum
● overtime wage
Hawaii: $21 minimum overtime
● wage
Idaho: $10.88 minimum
● overtime wage
Illinois: $21 minimum overtime
● wage
Indiana: $10.88 minimum
● overtime wage
Iowa: $10.88 minimum overtime
● wage
Kansas: $10.88 minimum
● overtime wage
Louisiana: $10.88 minimum
● overtime wage
Maine: $21.23 minimum
● overtime wage
Maryland: $22.50
●
Massachusetts: $22.50
●
Michigan: $15.50
●
Minnesota: $16.28
●
Mississippi: $10.88
●
Missouri: $18.45
●
Montana: $15.45
●
Nebraska: $18
●
New Hampshire: $10.88
●
New Jersey: $22.70
●
New Mexico: $18
●
New York: $22.50
●
North Carolina: $10.88
●
North Dakota: $10.88
●
Ohio: $15.68
●
Oklahoma: $10.88
●
Oregon: $21.30
●
Pennsylvania: $10.88
●
South Carolina: $10.88
●
South Dakota: $16.80
●
Tennessee: $10.88Texas:
●
$10.88
Utah: $10.88
●
Vermont: $20.51
●
Virginia: $18
●
Washington: $24.42
●
West Virginia: $13.13
●
Wisconsin: $10.88
●
Wyoming: $10.88
●