How Overtime Pay Works

Why Overtime Rules Differ by State

In the United States, overtime pay is governed by both federal and state laws. The federal Fair Labor Standards Act (FLSA) sets minimum standards, but states can implement stricter rules that provide additional protections for workers.

This means that depending on where you work, you might be entitled to overtime pay under different circumstances. Some states follow federal rules only, while others like California have more comprehensive daily overtime requirements.

How Our Overtime Calculations Work

Each state overtime pay calculator is built specifically for that state's labor laws. We take your inputs — hourly wage, hours worked per day, and days worked per week — and apply the correct overtime rates based on your state's regulations.

Why California Overtime Laws Are Unique

California has some of the most employee-friendly overtime laws in the country. Unlike the federal standard which only considers weekly hours, California requires overtime pay based on daily hours worked.

This means a California worker who puts in a 10-hour day earns overtime on those extra 2 hours, even if they work less than 40 hours that week. Try our California overtime calculator to see how this works.

A Simple Overtime Pay Example

Let's say you earn $20 per hour in California and work 10 hours a day for 5 days.

Without California's daily overtime rules, you would only earn $1,000 (50 hours × $20), since federal law doesn't require overtime until you exceed 40 hours per week.