Daily overtime: which states require it

Federal law only looks at hours per week, but a few states also count hours per day. Here is how daily overtime works and how to schedule around it.

In shortThe federal FLSA requires overtime only after 40 hours in a workweek. A few states also require daily overtime: California after 8 hours in a workday (and double time after 12), Alaska after 8 hours for covered employers, Nevada after 8 hours in a 24-hour period for employees paid under one and a half times the minimum wage, and Colorado after 12 hours. When both daily and weekly rules apply, the employee gets whichever gives more overtime, without counting the same hour twice.

Federal vs. daily overtime

Under the FLSA, a non-exempt employee could work 12 hours on Monday and still be owed no overtime if their weekly total stays at 40 or below. Daily overtime rules change that. In states with daily rules, long days trigger overtime even in short weeks. This matters for businesses with 10- or 12-hour shifts, split schedules or frequent late finishes. See our FLSA overtime rules guide for the federal baseline.

States with daily overtime

Daily overtime rules in brief (summary)
State Daily overtime rule
California 1.5x after 8 hours in a workday and for the first 8 hours on the seventh consecutive day of work in a workweek; 2x after 12 hours in a workday and after 8 hours on the seventh consecutive day
Alaska 1.5x after 8 hours in a day or 40 in a week, for employers with four or more employees, with some exemptions and flexible schedule options
Nevada 1.5x after 8 hours in any 24-hour period for employees earning less than 1.5 times the state minimum wage, unless a 4×10 schedule is mutually agreed
Colorado 1.5x after 12 hours in a workday or 12 consecutive hours regardless of the workday, as well as after 40 in a workweek

This is a summary. Each state has exemptions, industry rules and alternative schedule options, and rules can change. Some US territories, such as Puerto Rico, also have daily overtime. Confirm the current rules with the state labor department before scheduling.

How daily and weekly overtime combine

In states with both daily and weekly overtime, you generally calculate both and pay whichever results in more overtime, while making sure the same hours are not counted twice. In California, for example, daily overtime hours are not counted again toward the weekly 40-hour total.

Example: California week (fictional)
Day Hours Regular 1.5x 2x
Mon 10 8 2 0
Tue 10 8 2 0
Wed 13 8 4 1
Thu 8 8 0 0
Fri 6 6 0 0
Total 47 38 8 1

Here the employee has 38 regular hours, so the weekly 40-hour threshold is not exceeded once daily overtime is separated out. All 9 extra hours are paid as daily overtime or double time. Under federal rules alone, only 7 hours would be overtime and none would be double time. Our California overtime calculator helps check scenarios like this.

What counts as a workday

A workday is usually a consistently defined 24-hour period, which does not have to start at midnight. California defines a workday as any consecutive 24-hour period beginning at the same time each calendar day. Shifts that cross midnight and early starts after late finishes can produce surprises, so define your workday clearly and keep it consistent. Colorado also counts 12 consecutive hours of work even if they span two workdays.

Alternative schedules

Some states allow alternative arrangements. California permits alternative workweek schedules, such as four 10-hour days, only through a specific employee election process with strict rules. Nevada allows employers and employees to agree on four 10-hour days without daily overtime. Alaska has a voluntary flexible work hour plan approved by the state. These options have formal requirements; informal agreements are usually not enough.

Scheduling to manage daily overtime

  1. Know which of your locations are in daily-overtime states.
  2. Avoid scheduling shifts longer than the daily threshold unless necessary.
  3. Watch for back-to-back shifts and late finishes followed by early starts.
  4. Track consecutive days worked, especially in California.
  5. Use alerts so managers know when someone is about to cross the daily threshold.
  6. Review overtime by day, not only by week, in payroll reports.

For long-shift patterns, read our article on 12-hour shift schedules.

Common daily overtime mistakes

Recording hours by day

Daily overtime is impossible to calculate correctly without daily records of start and end times. Weekly totals are not enough. EZTime records every clock-in and clock-out, so hours are available by day and week, and overtime alerts help managers act before a shift runs over the daily threshold. Payroll-ready exports give your payroll provider the daily detail needed for state rules.

Multi-state employers

If you have employees in several states, apply each state’s rules to the employees working there. An employee who works in more than one state in a week may raise complex questions about which rules apply to which hours. Keep records by location, using GPS or site-based clock-ins where appropriate, and get advice for cross-state situations. Train managers in each state on the local rules, since a schedule that is fine in Texas may create daily overtime in California. EZTime supports multi-location teams with reports by site.

Frequently asked questions

Does federal law require daily overtime?

No. The FLSA only requires overtime after 40 hours in a workweek.

Which states have daily overtime?

California, Alaska, Nevada and Colorado have daily overtime rules, each with its own thresholds and exemptions.

Is overtime counted twice for daily and weekly hours?

No. You generally calculate both and pay the greater amount, without counting the same hours twice.

What is double time in California?

Generally 2x the regular rate for hours over 12 in a workday and for hours over 8 on the seventh consecutive day in a workweek.

Does daily overtime apply to salaried employees?

Only to non-exempt employees. Exempt employees are not owed overtime, though some states have stricter exemption tests.

Can employees agree to waive daily overtime?

Generally not informally. Some states allow formal alternative schedules with specific procedures.

Where to go next

Useful next steps

Alerts before the rules are broken

EZTime’s labor rule alerts warn about weekly hour limits, short rest between shifts, overtime thresholds and employees who forgot to clock out.

Disclaimer: This guide is general information only and is not legal, payroll or tax advice. Federal, state and local rules vary and change over time, so check current requirements with the Department of Labor, your state labor agency or a qualified attorney or payroll professional before making decisions. Examples are fictional.