How to reduce overtime across multiple locations
To reduce overtime across locations, plan each employee's hours across all your stores within one fixed workweek, because the FLSA requires an employer to total all hours an employee works for it in a workweek and pay at least 1.5× the regular rate for hours over 40 (29 CFR 778.103; DOL Fact Sheet #23). Hours cannot be averaged over two weeks (29 CFR 778.104).
Where multi-location overtime comes from
Example: an employee works 22 hours at Store A and 24 at Store B at $17.00 an hour. Neither store manager sees more than 24 hours, but the week totals 46. Pay: 46 × $17.00 = $782.00 straight time plus 6 × $8.50 = $51.00 overtime premium = $833.00. Moving those 6 hours to an employee under 40 saves $51.00 that week.
Seven moves and the rule behind each
| # | Move | Rule it relies on |
|---|---|---|
| 1 | Use one workweek start (for example Monday 12:00 a.m.) for every location | A workweek is a fixed 168-hour period; one can be set for an establishment or for groups of employees, and it can be changed only permanently and not to evade overtime (29 CFR 778.105) |
| 2 | Build one schedule that shows each person's hours at all locations before publishing | All hours for the employer are totaled (29 CFR 778.103) |
| 3 | Schedule shared staff to 38 hours, not 40, to leave room for late closes | Each workweek stands alone; next week's short hours do not offset this week (29 CFR 778.104) |
| 4 | Check daily overtime states separately | California pays 1.5× after 8 hours a day; Alaska after 8 hours (employers of 4 or more); Colorado after 12; Nevada after 8 for employees earning under 1.5× the state minimum, as listed by the US DOL (updated November 5, 2026) |
| 5 | Stop unscheduled early starts and late stays at the door, not on the timesheet | Work suffered or permitted is work time, and management must enforce its rule against it (29 CFR 785.11, 785.13) |
| 6 | Give extra shifts to part-time staff under 40 before full-time staff | Overtime applies only to hours over 40 in the workweek (Fact Sheet #23) |
| 7 | Watch employees who work two roles at two rates | The regular rate is the weighted average of both rates (29 CFR 778.115), so overtime on the higher-paid role costs more than you expect |
Weekly overtime check (template)
| Employee | Store A hours | Store B hours | Store C hours | Total | Over 40 | Action |
|---|---|---|---|---|---|---|
| J.R. | 22 | 24 | 0 | 46 | 6 | Move 6 hours to K.L. |
| K.L. | 18 | 0 | 8 | 26 | 0 | Can take up to 12 more before 38 |
| M.T. | 0 | 32 | 6 | 38 | 0 | At cap |
Run this before you publish the schedule and again on the last day of the workweek using actual punches.
What does not reduce overtime
- Paying shifts at the second store through a different business name, if it is the same employer: all hours worked for the employer are totaled (29 CFR 778.103), and jointly employed workers' hours are totaled too.
- Telling staff overtime will not be paid unless approved: Fact Sheet #23 says this does not remove the right to pay for overtime actually worked.
- Comp time instead of overtime pay in a private business: NOT FOUND as a permitted option in the federal sources used here. Washington's state table entry mentions compensating time off at the employee's request. This is a state-law provision; the DOL table does not say it changes FLSA overtime. Check your state.
- Rounding that only goes one way: 29 CFR 785.48 accepts rounding only if it does not underpay employees over time (rounding rules).
Measure it
Track overtime premium dollars per location per week next to each store's labor cost percentage. For the pay math, see how to calculate overtime pay; for staffing shared employees, see sharing employees between stores.
In Assistlify, staff can be assigned to one or more locations and scheduled on the same weekly schedule, and the attendance CSV export gives actual hours for the end-of-week check.
This is general information, not legal advice. Check your state labor department for current rules.
This is general information, not legal advice. Check your state labor department for current rules.
Questions
Do hours at two locations count together for overtime?
Yes, for the same employer. 29 CFR 778.103 requires all hours worked for the employer in the workweek to be totaled.
Can I average hours over two weeks?
No. 29 CFR 778.104 says each workweek stands alone.
Can I change our workweek to avoid overtime?
The workweek start can be changed only if the change is permanent and not designed to evade overtime (29 CFR 778.105).
Which states have daily overtime?
In the DOL state table updated November 5, 2026: Alaska, California, Colorado and Nevada list daily overtime thresholds; Kentucky has a 7th-day rule.
Sources
- eCFR 29 CFR 778.103 The workweek as the basis for applying section 7(a) (checked 2026-11-12)
- eCFR 29 CFR 778.104 Each workweek stands alone (checked 2026-11-12)
- eCFR 29 CFR 778.105 Determining the workweek (checked 2026-11-12)
- eCFR 29 CFR 778.115 Employees working at two or more rates (checked 2026-11-12)
- eCFR 29 CFR 785.11 Work suffered or permitted (checked 2026-11-12)
- eCFR 29 CFR 785.13 Duty of management (checked 2026-11-12)
- eCFR 29 CFR 785.48 Use of time clocks (checked 2026-11-12)
- US DOL WHD Fact Sheet #23: Overtime Pay Requirements of the FLSA (revised October 2019) (checked 2026-11-12)
- US DOL WHD: State Minimum Wage Laws (updated November 5, 2026) (checked 2026-11-12)