Believe it or not, when and how to pay overtime is a commonly asked question. Not a day goes by where we are not asked “When should I pay overtime, over 80 hours in two weeks?” Actually, the standard is over 40 hours in one week. However, some states pay overtime if an employee works more than 8 hours in one day.

The Fair Labor Standards Act (FLSA) mandates overtime pay to be at least 1.5 times an employee’s regular rate of pay after 40 hours of the workweek, not to be confused with the pay period.

Example 1: In a two week pay period, John worked 82 hours. John works in North Carolina
Week One: 48 Hours
Week Two: 34 Hours

A common error would be to only pay John 2 hours of overtime since he works a two week pay period. However, in this scenario, John is entitled to 8 hours of overtime.

Example 2: John works in California, his bi-weekly pay period is as follows, maintaining the 82 hour bi-weekly hours:

Week One:
Monday: 7 Hours
Tuesday: 6 Hours
Wednesday: 14 Hours
Thursday: 16 Hours
Friday: 5 Hours

Week Two:
Monday: 8 Hours
Tuesday: 8 Hours
Wednesday: 8 Hours
Thursday: 8 Hours
Friday: 8 Hours

Total Hours: 82, Overtime mandated by California Law: 14 Hours
California Law mandates that overtime be paid at a rate of 1.5 times the regular rate of pay for over 8 hours worked in one day.

If you are unsure of the overtime laws in your state, feel free to call us at (704) 921-2730 or send an email to at any time. Our mission is to help you comply.