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    OvertimeNov 6, 2025·Casey Marks

    How Overtime Pay Works in Every State (2026)

    Federal and state overtime rules explained. Daily vs weekly thresholds, exempt vs non-exempt, and how to calculate what you're owed.

    Danny loaded trucks at a distribution center outside Sacramento. The holiday season schedule was brutal. Management scheduled 10-hour shifts Monday through Wednesday, then gave everyone Thursday and Friday off. Danny didn't mind. Three long days and a four-day weekend? That felt like a deal.

    What Danny didn't know was that California has daily overtime rules. In most states, overtime kicks in after 40 hours in a workweek. In California, it kicks in after 8 hours in a single day. Danny's three 10-hour shifts meant 6 hours of overtime pay every week: 2 extra hours per day, at time-and-a-half. At his rate of $21/hour, that was $189 per week in overtime he wasn't receiving.

    He found out by accident. A coworker named Marla, who'd worked in the warehouse for nine years, overheard him talking about the schedule in the break room. "You're getting your daily OT, right?" she asked. Danny didn't know what she was talking about.

    He brought it to his supervisor, who said he'd "look into it." Two weeks later, nothing had changed. Danny printed out the California labor code section on daily overtime, highlighted the relevant paragraph, and brought it to HR. Within a month, he received a back-pay check for $1,890 covering the ten weeks of missing overtime.

    The Federal Baseline

    The Fair Labor Standards Act (FLSA) requires overtime pay at 1.5x your regular rate for any hours worked beyond 40 in a workweek. But states can add protections. California, Colorado, and Alaska all have daily overtime thresholds.

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    Who Qualifies?

    The FLSA exempts "exempt" employees, generally salaried workers earning at least $35,568/year in executive, administrative, or professional roles. But misclassification is common. If your title says "manager" but your days look exactly like the people you manage, you might be entitled to overtime you're not receiving.

    Use our Overtime Pay Calculator to see what you should be earning. The "Annual OT Impact" tab shows how regular overtime adds up over a full year. At Danny's rate, that's over $9,800 per year in additional pay he would have lost if Marla hadn't spoken up.

    Danny still works at the distribution center. He checks every pay stub now. "I trusted them to get it right," he says. "They didn't. So I learned to check it myself."

    Try it yourself

    Open Overtime Pay Calculator →