Statutory Analysis Engine

Overtime Law Checker & Compliance Auditor

A deterministic model based on 2025 FLSA and state labor frameworks. Evaluate your eligibility, calculate "Regular Rate" adjustments, and identify daily vs. weekly statutory triggers.

Legal Disclaimer

This tool identifies Statutory Correlations and provides mathematical estimations. It does not constitute legal advice. Overtime eligibility is a fact-intensive "Duties Test" determination. For a definitive legal ruling on "Exempt" status or specific back-pay claims, consult a licensed employment attorney.

Compliance Estimation Tool

Enter daily hours for CA, or weekly hours for Federal/Other.

The Jurisdictional Hierarchy of Overtime

In 2025, overtime compliance is governed by a Jurisdictional Stack. While the Federal Fair Labor Standards Act (FLSA) provides the minimum protection floor, state and municipal laws frequently "override" federal standards by providing more favorable terms for the worker.

This tool defaults to the most stringent common standards. For example, if you are in California, our logic applies Daily Overtime (1.5x after 8 hours) rather than just the federal weekly standard (1.5x after 40 hours).

The Three Pillars of OT Compliance

The Salary Level

Effective Jan 1, 2025, the federal salary threshold for exemption rose significantly. If you earn below $1,128 per week (approx. $58k/year), you are likely Non-Exempt regardless of your title.

The Duties Test

Being "Salaried" isn't enough. You must also perform "Executive, Administrative, or Professional" duties. Manual, clerical, or routine work is almost always overtime-protected.

The Regular Rate

Overtime is NOT just "Base Hourly × 1.5." It must include non-discretionary bonuses, commissions, and shift differentials in the base calculation.

The Regular Rate of Pay: The #1 Audit Error

The most common mistake in overtime administration is the assumption that overtime is simply "Hourly Rate × 1.5." In reality, federal law requires overtime to be calculated based on the Regular Rate of Pay, which must include almost all forms of remuneration.

Included in Regular Rate

  • Non-discretionary bonuses (Performance-based)
  • Shift differentials (Night or weekend premiums)
  • On-call pay (When considered "working time")
  • Value of non-cash payments (Room and board)
  • Production-based incentives

Excluded from Regular Rate

  • True discretionary bonuses (Surprise gifts)
  • Paid time off (Vacation/Sick pay)
  • Benefit plan contributions
  • Reimbursement for business expenses
  • Irregular holiday gifts

Failure to include a monthly performance bonus in an employee's regular rate before calculating their 1.5x premium is a primary driver of back-wage settlements in the United States.

State-Level Variations & Complexity

While federal law sets the "floor," states are free to set higher standards. This checker allows for specific regional overrides:

California (Dailies & Double Time)

California is one of the few states that mandates daily overtime. Furthermore, the "Seventh Consecutive Day" rule triggers 1.5x for the first 8 hours worked on that day, and 2.0x for any hours beyond 8 on that seventh day.

New York (Hospitality & Spread)

New York's "Spread of Hours" rule requires an extra hour of pay at the minimum wage rate if the interval between the beginning and end of a workday exceeds 10 hours, regardless of whether the actual hours worked exceed 40.

Colorado (The 12-Hour Daily)

Under Colorado law, overtime must be paid for hours worked over 40 in a workweek, 12 in a workday, or 12 consecutive hours without regard to the start/end time of the workday.

The 'Regular Rate' Math: Beyond Case Hourly

One of the most common drivers of back-pay liability is the failure to include non-hourly remuneration in the overtime base. If you receive a Performance Bonus, that money must be indexed back to the hours it was earned.

Bonus Re-Calculation Example

VariableThe 'Fixed' ErrorThe Legal Reality
Hours Worked50 Hours50 Hours
Base Pay$1,000 ($20/hr)$1,000 ($20/hr)
Production Bonus$500 (Ignored)$500 (Included)
New Regular Rate$20.00$30.00 ($1,500 / 50)
OT Premium (1.5x)$300 total OT$450 total OT

In this scenario, ignoring the bonus result in $150 of "Wage Theft" per week.

Exemption Myths: The 'Salaried' Confusion

Being "Salaried" does not automatically mean you are ineligible for overtime. You must also pass the Duties Test.

✕ Myth: "Managers don't get OT."

REALITY: Only managers who spend 50%+ of their time supervising 2+ full-time employees AND have "Hire/Fire" authority are typically exempt.

✕ Myth: "I signed an OT waiver."

REALITY: FLSA rights are non-waivable. A contract saying you won't take overtime pay is legally null and void.

Overtime Compliance FAQ

What is the 'Spread of Hours' premium?↓
Primarily in states like New York, if your shift spans more than 10 hours from start to finish (e.g., 8am to 7pm with a 3-hour break), the employer must pay an additional hour at the minimum wage rate, regardless of total hours worked.
Can I choose 'Comp Time' instead of cash?↓
In the private sector, No. Federal law requires overtime to be paid in cash in the pay period it was earned. "Comp Time" (giving time off in a later week) is generally only legal for public/government employees.
Does 'On-Call' time count towards OT?↓
It depends on whether you are "Waiting to be Engaged" or "Engaged to Wait." If the on-call restrictions are so tight you cannot use the time for your own purposes, it is compensable work time that counts toward overtime thresholds.