Overtime Pay Rules & Statistics (2026)
A current, citable reference for U.S. overtime law — the federal threshold saga, every daily-overtime state, and the numbers that decide who gets time and a half.
2026 overtime at a glance
- Federal overtime rate: 1.5× the regular rate after 40 hours in a workweek (FLSA).
- Federal salary threshold for white-collar exemption: $684/week = $35,568/year — the 2019 level, formally restored by the DOL in May 2026 after the 2024 increase was struck down in court.
- Highly-compensated employee (HCE) exemption threshold: $107,432/year.
- 4 states require daily overtime: California, Alaska, Nevada and Colorado.
- Federal law requires no premium for weekends, holidays or night work as such — only hours past 40.
- Overtime for tipped workers is computed on the full minimum wage: at $7.25 federal, the overtime rate is $10.88, and the minimum cash overtime wage is $5.76 after the maximum $5.12 tip credit.
How federal overtime works
The Fair Labor Standards Act entitles non-exempt employees to one and a half times their “regular rate” for every hour worked beyond 40 in a single workweek. The regular rate includes shift differentials, non-discretionary bonuses and commissions — not just base wages. There is no federal daily overtime, no cap on how many overtime hours can be worked, and no requirement that overtime be pre-approved to be payable: if the employer “suffers or permits” the work, it must be paid.
The federal salary threshold — and its 2024–2026 legal saga
Salaried employees are exempt from overtime only if they earn above a salary threshold and perform executive, administrative or professional duties. The threshold's recent history is the most-cited storyline in payroll compliance:
| Date | Event | Weekly threshold | Annualized |
|---|---|---|---|
| 2004 | Threshold set under the 2004 rule | $455 | $23,660 |
| Jan 2020 | 2019 final rule takes effect | $684 | $35,568 |
| Jul 2024 | 2024 rule, step one (briefly in effect) | $844 | $43,888 |
| Jan 2025 | 2024 rule, step two — never took effect | $1,128 | $58,656 |
| Nov 2024 | Federal court (E.D. Texas) vacates the 2024 rule nationwide, reverting the threshold to $684 | $684 | $35,568 |
| May 2026 | DOL publishes a technical amendment formally restoring the 2019 levels after Fifth Circuit appeals end | $684 | $35,568 |
Bottom line for 2026: $684 per week ($35,568/year) is the governing federal standard, and $107,432/year for the highly-compensated exemption. Salaried workers below these lines are overtime-eligible regardless of job title.
States that require daily overtime
Federal law counts only weekly hours, but four states add daily triggers — the detail most out-of-state employers miss:
| State | Daily rule | Extra rules |
|---|---|---|
| California | 1.5× after 8 h/day; 2× after 12 h/day | 7th consecutive workday: 1.5× for first 8 h, 2× beyond |
| Alaska | 1.5× after 8 h/day | Or after 40 h/week, whichever is greater protection |
| Nevada | 1.5× after 8 h in a 24-hour period | Only for employees earning less than 1.5× the state minimum wage |
| Colorado | 1.5× after 12 h/day (or 12 consecutive hours) | Also after 40 h/week under COMPS orders |
States with higher salary thresholds than $684
Several states set their own — much higher — exemption thresholds, so an employee can be exempt federally yet overtime-eligible under state law:
| State | How the threshold is set | Ballpark vs. federal |
|---|---|---|
| California | 2× the state minimum wage, annualized for full-time work | ≈ double the federal level |
| New York | Fixed schedule, higher in NYC/downstate than upstate | Well above federal |
| Washington | Multiplier of the state minimum wage (phasing up to 2.5×) | Among the nation’s highest |
| Colorado | Annual COMPS order schedule | Above federal |
| Maine / Alaska | Formulas tied to state minimum wage | Above federal |
Exact dollar figures adjust each January with state minimum wages — check the state labor department for the current year’s number before classifying anyone.
Overtime myths that cost people money
- “I’m salaried, so no overtime.” False below $684/week — and false above it unless the duties tests are also met. Job titles prove nothing.
- “Weekends and holidays pay extra by law.” No federal or (almost any) state law requires it; premiums come from policy or contract.
- “Unapproved overtime doesn’t have to be paid.” Working time knowingly permitted must be paid; the employer’s remedy is discipline, not withheld wages.
- “Comp time instead of overtime is fine.” Private-sector employers generally cannot substitute time off for FLSA overtime pay (public agencies can, under conditions).
- “My overtime rate is just base pay × 1.5.” Not when differentials, commissions or non-discretionary bonuses exist — those raise the regular rate. Enforcement matters: the DOL’s Wage and Hour Division recovers hundreds of millions of dollars in back wages every year, with overtime violations consistently the largest category.
Frequently asked questions
What is the federal overtime salary threshold in 2026?
$684 per week ($35,568 per year). The 2024 rule that briefly raised it to $844 — with $1,128 scheduled for 2025 — was vacated by a federal court in November 2024, and in May 2026 the DOL formally restored the 2019 levels. The highly-compensated employee threshold is $107,432.
Which states have daily overtime in 2026?
California (over 8 hours/day at 1.5×, over 12 at 2×), Alaska (over 8 hours/day), Nevada (over 8 hours in 24, for lower-wage employees) and Colorado (over 12 hours/day). Everywhere else, only the 40-hour weekly federal standard applies unless a contract says otherwise.
Can I use these tables in my article or blog post?
Yes — cite freely with a link to this page. We review the figures against current DOL and state rules and update the page when they change (last reviewed date is shown below).
Is mandatory overtime legal?
Generally yes — federal law caps nothing and most states allow employers to require overtime, provided every overtime hour is paid at 1.5×. Exceptions exist for specific safety-sensitive roles (trucking hours-of-service, nurse mandatory-OT bans in some states) and union contracts.
Last reviewed: 2026-08-20 · Feel free to cite or link to the tables on this page · Report an issue