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Daily or weekly overtime? 3 state rules for bid hours

CostDay Editorial Team · Posted · 10 min read

Wisconsin overtime is weekly, Alaska adds a daily trigger, and Michigan is weekly with a written 14-day option. Wisconsin's overtime applies only after 40 hours in a workweek, according to Wisconsin Department of Workforce Development. Alaska requires time-and-one-half after more than 8 hours in a single day and/or more than 40 hours in a single week, according to Alaska Department of Labor and Workforce Development. Michigan requires 1-1/2 times the regular rate for employment in a workweek in excess of 40 hours, according to Michigan Legislature.

Key takeaways

Why the overtime trigger changes your bid hours

Overtime changes a bid when premium hours are counted differently from one state to the next. Wisconsin, Alaska and Michigan each state their trigger in their own words, so one blended crew rate does not show which hours carry a premium in each place. A single blended figure can also hide a daily count that a state source names separately from its weekly count.

The table below sets out the trigger and pay wording quoted from each state source. Each cell repeats wording from that publisher's source. The Michigan 14-day option is not in the table, and it is covered in its own section below.

Publisher Overtime trigger as quoted Pay wording as quoted
Wisconsin Department of Workforce Development in excess of 40 in the workweek time and one-half the employee's regular rate of pay
Alaska Department of Labor and Workforce Development more than 8 hours in a single day and/or more than 40 hours in a single week time-and-one-half (1.5 times)
Michigan Legislature in a workweek in excess of 40 hours 1-1/2 times the regular rate

Wisconsin: weekly 40 hours and the 7-day workweek

Wisconsin's overtime trigger is measured against the workweek. Overtime wages of time and one-half the employee's regular rate of pay must be paid for hours worked in excess of 40 in the workweek, unless an exception applies, according to Wisconsin Department of Workforce Development. Until an exception is named, the 40-hour count is the working test. The weekly total is therefore the figure to check first.

The same source defines the week for this purpose. A "week" is the employer's established regular reoccurring period of 7 consecutive days, according to Wisconsin Department of Workforce Development. Since the quoted definition uses the employer's established period, record that period's start day on the crew sheet, then total hours forward from that day in seven-day blocks rather than against an assumed calendar pattern.

The source also addresses schedule changes. Since employers may schedule as they see fit, they may also change employees' schedules during a given week in order to prevent them from working overtime in that week, according to Wisconsin Department of Workforce Development. A recommended habit is to note in the bid whether a Wisconsin schedule is planned as a fixed pattern or set week by week, so the estimate reflects the schedule as it is written. If the schedule is adjusted mid-week, record the adjusted hours and the reason on the crew sheet so the labor line matches the work that was actually scheduled.

Alaska: daily 8 hours and weekly 40 hours

Alaska's rule has two counts. The source says that if you work more than 8 hours in a single day and/or more than 40 hours in a single week, you must be paid time-and-one-half (1.5 times) your hourly or regular wage for those extra hours that you worked, according to Alaska Department of Labor and Workforce Development. The phrase "and/or" is part of the quoted text, so either count can trigger the extra pay.

For a bid, a shift over 8 hours and a week over 40 hours each need their own log, rather than one weekly figure carrying both.

A crew average would blend those lines together, so the bid keeps each worker's daily and weekly hours on separate lines before rolling them into a crew total. Because the Alaska trigger includes a daily count, according to Alaska Department of Labor and Workforce Development, a weekly-only time sheet leaves that count unread. If the time sheet records only weekly totals, add a daily column before the labor rate is locked.

Illustrative example: one Alaska week

An Alaska worker logs 10 hours on Monday, 8 hours on each of Tuesday, Wednesday and Thursday, and 6 hours on Friday. The week totals 40 hours, so the weekly count is not exceeded. The Monday shift runs 2 hours over 8, so the daily count makes those 2 hours payable at time-and-one-half. The bid keeps the daily result, 2 premium hours, on its own line and the weekly result, none, on another. Repeat the same two lines for each worker on the crew.

Michigan: 40 hours, plus the 14-day work period option

Michigan's section sets a weekly base trigger. Except as otherwise provided in the act, an employee receives not less than 1-1/2 times the regular rate for employment in a workweek in excess of 40 hours, according to Michigan Legislature. The opening clause refers to other provisions of the act, so a Michigan estimate should check those provisions before the weekly figure is treated as final.

The section also accepts a different period in place of the workweek. A work period of 14 consecutive days is accepted instead of the workweek of 7 consecutive days for purposes of overtime computation, according to Michigan Legislature. The source ties that option to a written agreement or written employment policy arrived at between the employer and the employee before performance of the work.

Under the 14-day period, the section sets the premium for employment in excess of 8 hours in a workday and in excess of 80 hours in the 14-day period, according to Michigan Legislature. The rate is 1-1/2 times the regular rate, and it is not less than the statutory minimum hourly rate at which the employee is employed, according to Michigan Legislature.

For a Michigan job, the labor schedule should show whether the written agreement exists and was arrived at before the work began. Without that agreement, the bid should use the 7-day workweek. Store a copy of the written agreement or policy with the job file, and mark its date against the first day of the work period on the crew sheet. Keep both the eight-hour workday count and the eighty-hour period total visible, so either test can be checked against the schedule.

Who is covered and small-employer exceptions

The quoted sources address workers in different words. The Alaska wording is written to a worker who says "you", according to Alaska Department of Labor and Workforce Development, while the Michigan section addresses an employee, according to Michigan Legislature. This article does not decide whether a particular worker or job is covered.

The Alaska source addresses a small employer. An employer who has a total of only three (3) employees, or less, can pay straight-time for all hours worked, according to Alaska Department of Labor and Workforce Development.

Before using a straight-time assumption for any Alaska crew, write down the headcount the employer uses. The quoted test is about the employer's total of employees, so a single job's crew list may not give the number that matters. Recording the total headcount shows which employer size the bid assumed, and it lets a reviewer check the assumption against the employer's records.

The Wisconsin test begins with "unless an exception applies," so any bid that depends on an exception should name that exception in the estimate notes, so the premium hours are not silently removed.

How to apply each trigger to your crew schedule

Start with the states where crews work. For each state, mark the governing trigger: Wisconsin is measured against the workweek, according to Wisconsin Department of Workforce Development; Alaska has both daily and weekly counts, according to Alaska Department of Labor and Workforce Development; and Michigan is weekly with a written 14-day option, according to Michigan Legislature.

Next, split each crew's hours into the counts that the trigger uses. An Alaska crew needs a daily column and a weekly column. A Wisconsin or Michigan crew needs a workweek total first, with the Michigan 14-day check kept separate when a written agreement is in place.

Write the workweek start day on each crew sheet for Wisconsin and Michigan jobs. Mark each Alaska day that passes eight hours in one column, and each week that passes forty hours in another, so the premium lines can be traced back to the schedule.

Keep a separate labor rate line for each trigger in the bid. A single blended line hides which hours came from which count, which makes the premium harder to check against the trigger. When a job crosses state lines, sort the crew hours by the state where the work was performed before totaling anything, so Wisconsin hours are not measured against an Alaska daily count.

For the cost inputs behind a premium rate, see overtime cost inputs for a bid rate. For the labor checks that come before costs are locked, see public bid labor checks before costs are locked. For pay clock rules across state sources, see pay clock rules from state sources.

Next step: list each state where your crews work and mark whether the daily or weekly trigger applies to your labor hours.

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FAQ

Does Wisconsin require daily overtime?

No. The Wisconsin source says overtime is not required for work performed on a particular day of the week, according to Wisconsin Department of Workforce Development, and the threshold is only after 40 hours in a workweek.

How many hours trigger overtime in Alaska?

The Alaska source sets the trigger at more than 8 hours in a single day and/or more than 40 hours in a single week, according to Alaska Department of Labor and Workforce Development. Either count can apply.

Is a 14-day work period allowed in Michigan?

Yes, when a written agreement or written employment policy is arrived at before the work is performed, a work period of 14 consecutive days is accepted instead of the 7-day workweek, according to Michigan Legislature. Hours beyond 8 in a workday and beyond 80 in the 14-day period carry 1-1/2 times the regular rate, according to Michigan Legislature.

Can a small Alaska employer pay straight time?

Yes. An employer with a total of only three (3) employees, or less, can pay straight-time for all hours worked, according to Alaska Department of Labor and Workforce Development. This answer does not decide whether a particular worker is covered.

Sources