Overtime Pay Rules by State 2026 — Which States Pay More Than Federal Law?

Federal law (FLSA) requires overtime pay at 1.5x your regular rate for any hours over 40 in a single workweek. But four states go further — requiring daily overtime, double time, or both. If you work in one of these states, you may be owed more than you think.

Federal Overtime Basics (FLSA)

• Overtime kicks in after 40 hours in a single workweek (not 8 hours/day, not biweekly)
• Rate: 1.5× your regular hourly rate
• Applies to non-exempt employees. Most hourly workers are non-exempt.
• Salaried workers earning under $684/week ($35,568/year) are also entitled to OT
• Employers cannot average hours across two weeks — each week is calculated separately

States With Stronger OT Protections

How Overtime Affects Your Taxes

Overtime income is taxed at your marginal tax rate — not a special OT rate. If your regular income puts you in the 22% bracket, your overtime earnings are also taxed at 22% (or higher if the extra income pushes you into a new bracket).

For example: a worker earning $50,000 base salary is in the 22% bracket for income above $47,150. All overtime earnings would be taxed at 22% federally. If they earn enough OT to push above $100,525, the excess would be taxed at 24%.

Exempt vs. Non-Exempt Employees

Not all workers qualify for overtime. Employees may be exempt if they are paid on a salary basis (over $684/week) AND their primary duties are executive, administrative, or professional in nature. Common exempt roles: managers, lawyers, doctors, teachers, outside sales reps, and most computer professionals earning over $27.63/hr.

Being paid a salary does not automatically make you exempt — the duties test must also be met. Misclassification is common, and employees who should have received overtime can sue for back pay plus penalties.

Calculate Your OT Pay by State

Free overtime calculator for all 50 states — see exactly what you are owed.

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