Staying Compliant with Greenshades Software
We explore specific state overtime laws for Alaska, California, Colorado, and Nevada, and demonstrate how Greenshades can help you navigate these complexities to ensure compliance with both federal and state-specific requirements.
Overtime Laws by State
Alabama Overtime Rules
Overtime pay earned by full-time, hourly employees for hours worked beyond 40 in a week is excluded from gross income and exempt from Alabama state income tax.
Dive deeper into the details of Alabama's payroll revolution here.
Alaska Overtime Rules
Alaska employers must adhere to strict overtime rules, paying overtime for work exceeding 40 hours in a week or eight hours in a day. Overtime compensation is set at 1.5 times the regular rate of pay.
Visit the Alaska Department of Labor and Workforce Development for more information.
California Overtime Rules
California has some of the nation’s most extensive overtime laws. Employers are required to pay 1.5 times the employee's regular rate for hours beyond eight but up to 12 in a single day and for the first eight hours worked on the seventh consecutive day in a workweek. Double-time rates apply for work over 12 hours in a day and beyond eight hours on the seventh consecutive day.
Visit the California Department of Industrial Relations for more information.
Colorado Overtime Rules
Colorado’s overtime requirements provide more protections than federal law. Employees must be paid overtime for work exceeding 40 hours per week, 12 hours per day, or 12 consecutive hours in a shift, whichever results in the highest payout. Specific rules apply to healthcare workers, allowing for an “8 and 80” rule, which permits overtime for hours beyond eight in a day or 80 in a two-week period. Colorado also has unique regulations for truck drivers.
Get more information about Colorado's overtime regulations here.
Nevada Overtime Rules
In Nevada, employers must pay 1.5 times the regular wage rate for employees earning less than 1.5 times the minimum wage whenever they work over 40 hours in a week or eight hours in a day, unless otherwise exempt. Nevada’s laws help protect employees, particularly those earning close to the minimum wage.
View the state of Nevada’s 2024 bulletin regarding daily overtime pay here.
Federal Overtime Law Changes: What You Need to Know
On July 1, 2024, the Department of Labor implemented a new federal overtime threshold under the FLSA. The guidelines increased eligibility to employees earning less than $844 per week, with a planned rise to $1,128 in January 2025. Additionally, the rule will adjust the criteria for highly compensated employees and introduce automatic updates every three years to match wage growth.
This change is projected to extend overtime protections to millions of workers, potentially impacting business operations and labor costs. Employers must stay vigilant as the federal thresholds evolve, especially if they employ workers in different states with varied overtime regulations.
Why Choose Greenshades?
Greenshades automates payroll and multi-state compliance, offering a comprehensive solution that adapts to complex overtime laws across different jurisdictions. Whether you’re adjusting to Alaska’s daily and weekly overtime requirements or California’s double-time rules, Greenshades keeps your payroll in line with the law, ensuring your team is compensated fairly and accurately.
Learn more about how Greenshades can help you manage compliance with ease. Visit our website or contact us to schedule a demo today.
