Minimum wage and overtime basics for hourly jobs: federal rules and state differences

Not legal advice. This is general information. Wage rules differ by state and city and can change every year. For your own situation, check the U.S. Department of Labor, your state labor department or an employment attorney.

If you are looking at hourly jobs — restaurants, grocery stores, warehouses, factories, office support — the first two questions are "what is the minimum wage here?" and "will I be paid overtime correctly?" Here are the federal Fair Labor Standards Act (FLSA) basics and how some key states differ.

The federal minimum wage

• The federal minimum wage is $7.25 an hour, unchanged since July 24, 2009.
• Many states set their own minimum wage. When both federal and state law apply, you are entitled to the higher of the two.
• Some cities and counties set their own minimums as well. California's labor agency, for example, says that when local and state standards differ, the employer must follow the one more favorable to the employee.

Overtime: time and a half after 40 hours

The core rules from the Labor Department's overtime page:

• Non-exempt employees must be paid at least one and a half times their regular rate for hours worked over 40 in a workweek.
• A workweek is a fixed, regularly recurring period of 168 hours — seven consecutive 24-hour periods.
• Averaging over two or more weeks is not allowed. If you work 50 hours one week and 30 the next, you are owed 10 hours of overtime for the first week.
• Federal law sets no limit on the number of hours employees aged 16 and older may work in a week — but hours over 40 must be paid as overtime.

Exempt employees — duties and pay, not titles

Executive, administrative and professional employees can be exempt from overtime, but only if they qualify. Under DOL Fact Sheet 17A, an exempt employee generally must

• be paid on a salary basis at least $684 per week, and
• meet a duties test — for example, managing a department and regularly directing at least two full-time employees (executive), using independent judgment on significant matters (administrative), or doing work that requires advanced knowledge (professional).

The Labor Department states that "job titles do not determine exempt status." A "manager" who mostly runs the register or works in the kitchen may still be non-exempt. A 2024 rule that raised the salary level was vacated by a court; in May 2026 the Department published a technical amendment restoring the 2019 rule ($684 a week, and $107,432 a year for highly compensated employees). State law may differ, so check your state labor department as well.

Tipped employees

From DOL Fact Sheet 15:

• Employers must pay tipped workers at least $2.13 an hour in cash wages. The maximum tip credit an employer can claim is $5.12 an hour.
• If cash wages plus tips do not reach the minimum wage, the employer must make up the difference.
• Employers may not keep any part of employees' tips for any purpose — including managers and supervisors.
• When state law differs, the employer must follow the standard most protective of employees. Some states do not allow a tip credit at all.

Minimum wages in key states

The table below follows the Labor Department's state minimum wage table (updated July 1, 2026) and each state's own page. Local and industry rates (for example California's fast food and certain health care rates) can be higher, and rates change every year, so always recheck the state page.

For job seekers and employers

• Job seekers — check that a posting's hourly rate meets the local minimum and whether overtime is paid. On JOBnaru™ you can show only jobs that list pay, and our pay transparency guide explains which states require pay ranges in ads.
• Employers — stating the hourly rate and overtime terms clearly builds trust with applicants. You can enter a pay range when you post a job.
• Offers such as "cash pay, no overtime" deserve a second look against the rules above. If something seems wrong, contact your state labor department or the Wage and Hour Division. See also job scam warning signs.

Last checked: October 19, 2026.

Cite this article as: JOBnaru™ — https://jobnaru.com/en/news/overtime-minimum-wage-hourly-jobs