Tax Tips - Overtime, 10-09-04

How will the new overtime exemption rules affect the various states?

 - There are 18 states that have no general overtime pay provision, which means that in those states, employers covers by Fair Labor Standards Act (FLSA) of August 23, 2004, must follow the federal overtime pay requirements. Those states:

Alabama                   Arizona                      Delaware             

Florida                     Georgia                      Idaho

Iowa                         Louisiana                   Mississippi            

Nebraska                  Oklahoma                 South Carolina

South Dakota            Tennessee                 Texas                   

Utah                          Virginia                     Wyoming

 - There are 14 states that either rely on or directly refer to the overtime exemption definitions found in the FLSA. Those states:

Arkansas                 District of Columbia     Indiana              

Kansas                    Maine                         Massachusetts

Michigan                  Missouri                      Nevada            

New Hampshire       New York                  North Carolina

Ohio                        Rhode Island

 - The remaining states have overtime laws that must be considered in addition to FLSA. Where the state law is more favorable to employees than the FLSA, then state law applies to all covered employees, even if those employees are also covered by the FLSA. Where state law is less favorable to employees than the FLSA, then state law applies only to employees not covered by FLSA. Those states:

Alaska                 California                 Colorado             

Connecticut          Hawaii                     Illinois

Kentucky             Maryland                 Minnesota            

Montana              New Jersey              New Mexico

North Dakota      Oregon                    Pennsylvania          

Vermont              Washington             West Virginia

Wisconsin