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Overtime in CleanCloud Payroll

Learn how overtime laws work by state, how to calculate regular pay rates, and correctly process overtime in CleanCloud Payroll.

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Written by Account Management
Updated over a week ago

State Overtime Laws

Summaries of the federal Fair Labor Standards Act (FLSA) and state-specific overtime laws are outlined below.


Fair Labor Standards Act (FLSA)

The Department of Labor states: "For covered, nonexempt employees, the Fair Labor Standards Act (FLSA) requires overtime pay to be at least one and one-half times an employee's regular rate of pay after 40 hours of work in a workweek."

  • Some exceptions apply under special circumstances to police, firefighters, and employees of hospitals and nursing homes.

  • Workplaces governed by collective bargaining agreements may have separate overtime standards.

  • Some states have their own overtime laws. When federal and state laws differ, employees are entitled to the law providing the higher overtime pay.

  • Extra pay for working weekends or nights is a matter of agreement between employer and employee.


Types of Overtime

Overtime Type

Hourly Rate Multiplier

Weekly Overtime (over 40 hours)

1.5 × RRP

Daily Overtime (over 8 hours)

1.5 × RRP

Daily Double Overtime (over 12 hours)

2.0 × RRP

7th Consecutive Day Worked

1.5 × RRP (first 8 hours), 2.0 × RRP (over 8 hours)

(RRP = Regular Rate of Pay)


State Overtime Laws

Note: Last Revised September 2023.

State

Overtime Occurs After

Overtime Calculation

Explanation

AL

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40 in a week.

Weekly: Refer to FLSA definition.

AK

Weekly: 40 hours


Daily: 8 hours

Weekly: 1.5 × RRP for all hours over 40.


Daily: 1.5 × RRP for all hours over 8.

Weekly: Refer to FLSA definition.


Daily: Employees who work more than 8 hours during any workday will earn overtime, paid at 1.5x their regular rate of pay.

AZ

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40 in a week.

Weekly: Refer to FLSA definition.

AR

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40 in a week.

Weekly: Refer to FLSA definition.

CA

Weekly: 40 hours


Daily: 8 hours


Daily Double OT: 12 hours


7th consecutive day: All hours

Weekly: 1.5 × RRP for all hours over 40.


Daily: 1.5 × RRP for all hours over 8.


Daily Double OT: 2 × RRP for all hours over 12.


7th consecutive day: 1.5 × RRP for the first 8 hours and 2 × RRP for hours over 8.

Weekly: Overtime applies after 40 hours.


Daily: Overtime applies after 8 hours.


Double OT: Overtime applies after 12 hours.


7th Day: Overtime applies at 1.5× for the first 8 hours, then 2× beyond. Outside counsel is recommended to understand interaction of rules.

CO

Weekly: 40 hours


Daily: 12 hours

Weekly: 1.5 × RRP for all hours over 40.


Daily: 1.5 × RRP for all hours over 12.

Weekly: Refer to FLSA definition.


Daily: Employees working more than 12 hours/day or 12 consecutive hours must be paid overtime.

CT

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

DE

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

FL

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

GA

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

HI

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

ID

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

IL

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

IN

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

IA

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

KS

Weekly: 46 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Unless exempt, refer to FLSA definition.

KY

Weekly: 40 hours


7th consecutive day: All hours

Weekly: 1.5 × RRP for all hours over 40.


7th day: 1.5 × RRP for all hours worked.

Weekly: Refer to FLSA definition.


7th Day: All hours on 7th consecutive day at overtime rate.

LA

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

ME

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

MD

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

MA

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

MI

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

MN

Weekly: 48 hours

Weekly: 1.5 × RRP for all hours over 48.

Weekly: Unless exempt, refer to FLSA definition.

MS

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

MO

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

MT

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

NE

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

NV

Weekly: 40 hours


Daily: 8 hours in 24-hour period (if under $18/hr)

Weekly: 1.5 × RRP over 40 hours.


Daily: 1.5 × RRP if more than 8 hours in 24 consecutive hours.

Weekly: Refer to FLSA definition.


Daily: Applies if employee earns less than 1.5x minimum wage ($18/hr). 4x10 schedule exception if agreed.

NH

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

NJ

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

NM

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

NY

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

NC

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

ND

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

OH

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

OK

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

OR

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

PA

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Overtime for salaried non-exempt employeesA new law went into effect August 5, 2022.

Before you can calculate overtime, calculate the regular rate of pay (RRP), which is found by dividing the employee's total earnings* by 40 hours.

Total earnings are all wages, including non-discretionary bonuses, commissions, shift differentials, and other incentive pay.

To find their overtime pay:
- Multiply their regular rate by the hours of overtime they worked.
- Multiply by time and one-half (1.5x).
- Add their weekly salary to their overtime pay.

Scroll to the Overtime FAQs section of this Ohio resource to see the math example — look for the dropdown: “I pay a non-exempt salaried employee a salary of $1,000 per week. The employee worked 50 hours last week, how much must they be paid for that week of work?”

Overtime for hourly employees:
With few exceptions, hourly employees who work more than 40 hours a week must be paid time and a half (1.5x) for all hours over 40.

RI

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

SC

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

SD

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

TN

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

TX

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

UT

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

VT

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

VA

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

WA

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

DC (Washington D.C.)

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

WV

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

WI

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.

WY

Weekly: 40 hours

Weekly: 1.5 × RRP for all hours over 40.

Weekly: Refer to FLSA definition.


Setting Up Weekly Overtime Limit

  1. Go to Settings → Admin → Payments & Finances → Payroll.

  2. Set your Weekly Overtime Hours Limit according to your state law.

  3. Set your Overtime Wage Multiplier according to your state law.

⚠️ Heads up: If you run a bi-weekly payroll, double the Weekly Overtime Limit (e.g., set to 80 hours).


Setting Up Daily Overtime Limit

ⓘ Important: Currently, CleanCloud Payroll does not support automatic Daily Overtime Limits.

For customers in AK, CA, CO, NV, to remain compliant:


Adding Overtime Hours to Payroll

When you run regular payroll:

  • CleanCloud automatically calculates weekly overtime based on your setup.

🪄 Tip: If in AK, CA, CO, NV, manually export staff hours and manually add any Daily Overtime Hours.


Regular Rate of Pay (RRP)

Under the Fair Labor Standards Act (FLSA), employers must pay employees overtime compensation at a rate of at least 1.5 times their "regular rate" for time worked in excess of 40 hours during a given workweek. There are also state-specific overtime laws that may apply.

An employee’s regular rate is the base hourly rate used for calculating overtime pay.

  • If an employee is compensated solely by an hourly wage, their regular rate is the same as their hourly wage.

  • If an employee is also compensated with eligible supplemental payments (such as production bonuses, commissions, shift differentials, or other incentive pay), these payments must be included when calculating the regular rate of pay.

To calculate the regular rate, sum the employee’s total compensation for the workweek (excluding excludable payments) and divide it by the total number of hours worked during the workweek.

Essentially, the regular rate converts an employee’s eligible supplemental payments into an hourly equivalent, ensuring overtime pay is properly calculated (see the Federal Regulation on Overtime Compensation).


Calculation Formula

RRP = (Total Earnings - Excluded Earnings) ÷ Total Hours Worked


Example

Tom works 44 hours in a given workweek at $10/hour and earns a $200 commission.

  • Regular wages: 44 hours × $10 = $440

  • Add commissions: $440 + $200 = $640 total earnings

  • RRP = 640 ÷ 44 = $14.55 per hour

Now, calculate overtime:

  • Overtime premium (half-time) = 14.55 × 0.5 = $7.28 per overtime hour

  • Tom worked 4 overtime hours: 7.28 × 4 = $29.12 overtime pay

Finally, calculate gross pay:

  • Gross pay = 440 (regular wages) + 200 (commission) + 29.12 (overtime premium) = $669.12

Final Gross Pay = $669.12

📌 Note: The Regular Rate of Pay (RRP) is automatically calculated in CleanCloud Payroll based on custom earnings and the workweek breakdown during the payroll flow.


🛟 Need more help?

Explore our Help Center articles for answers. Contact us for further assistance.

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