Overtime rules

Pick the rule that matches your pay stub.

Paycheck Correct does not try to cover every state or every contract. It supports a small set of rules that cover a lot of U.S. hourly work — and explains each one before you use it.

Coming soonSee how it works

The default for most U.S. hourly jobs

Federal 40-hour overtime

One workweek, one threshold: hours over 40 are paid at 1.5× the regular rate. Multiple worksites at the same employer combine; different employers do not.

Threshold
40h/week
Who it fits
Most hourly jobs
Read the Federal 40-hour overtime rule

Daily overtime, weekly overtime, and the seventh day

California daily 8/12

California adds daily overtime on top of the federal workweek. Hours over 8 in a day are 1.5×, hours over 12 are 2×, and the seventh consecutive day has its own rule.

Threshold
8h/day · 40h/week
Who it fits
California wage orders
Read the California daily 8/12 rule

Federal FLSA §7(j) for hospital and residential care

Hospital 8/80

A federal option for hospitals and residential care establishments: overtime is based on a fixed 14-day period instead of the usual 40-hour workweek.

Threshold
8h/day · 80h/14 days
Who it fits
Eligible hospitals
Read the Hospital 8/80 rule

Federal 8/80 plus California daily, weekly, and seventh-day rules

California hospital 8/80

For a California hospital or residential care employer that uses a federal 8/80 period, California's daily and weekly protections still apply. Paycheck Correct takes the higher result without double-counting.

Threshold
8h/day · 40h/week · 80h/14 days
Who it fits
CA hospitals
Read the California hospital 8/80 rule

A contract or union rule that differs from the legal presets

Custom weekly contract

Use this only when a contract, union agreement, or pay stub shows a weekly threshold or multiplier that is different from Federal 40. It is not a legal preset.

Threshold
Custom weekly
Who it fits
Contract-specific
Read the Custom weekly contract rule
Estimates, not legal advice. Overtime depends on the employer, the state, the workweek, and sometimes a union contract. Paycheck Correct gives you a traceable estimate to compare with your pay stub; it does not decide whether your employer is compliant.

Why these five?

Federal 40 and California daily cover the two largest groups in the app’s v1 scope. Hospital 8/80 is a federal option for eligible hospital and residential-care employers. California hospital 8/80 combines that option with California’s daily and seventh-day rules. Custom weekly is an escape hatch for contracts that do not match a legal preset.

Not sure? Open the rule that looks closest to your pay stub, then check the example. If the numbers do not match, use Federal 40 as the baseline or choose Custom weekly only when the contract is explicit.

Last reviewed October 20, 2026.