Overtime Rules
Under the federal Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay at 1.5× their regular rate for all hours worked over 40 in a workweek. Some states (California, Alaska, Nevada) also require daily overtime for hours over 8 per day.
Building a weekly total
Convert each day's in and out times to decimal hours, subtract unpaid breaks, then sum the days. Mixing clock format with decimal is what produces wrong totals — 8:45 is 8.75 hours, not 8.45.
Shifts crossing midnight
A shift from 21:00 to 05:00 is 8 hours, but naive subtraction gives −16. Either add 24 to the finish time (29:00 − 21:00 = 8) or split the shift at midnight and add the parts. Night shift timecards get this wrong routinely.
Time clock rounding
US employers may round clock entries, commonly to the nearest quarter hour, under what is often called the 7-minute rule: minutes 1–7 past the quarter round down, 8–14 round up.
The requirement is that rounding must be neutral over time. It can favour the employee on some days and the employer on others, but a system that always rounds against the worker is not permissible. Rounding start times up and finish times down systematically is a wage violation, not an administrative preference.
What counts as paid time
- Short rest breaks, roughly 20 minutes or under, are generally paid
- A genuine uninterrupted meal break is generally unpaid
- A meal break where you keep working — covering phones, staying at the station — is working time
- Required pre-shift setup and post-shift cleanup count
- Mandatory training and travel between job sites during the day generally count
Overtime
Federal overtime is based on hours past 40 in a single workweek, with each week standing alone rather than averaging across a two-week pay period. Several states add daily thresholds on top. See How Overtime Pay Is Calculated for the rate mechanics.