GUIDES

How to reduce overtime across multiple locations

Updated 2026-11-12 · By the Assistlify team · AI-assisted, every fact linked to its source below

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

#MoveRule it relies on
1Use one workweek start (for example Monday 12:00 a.m.) for every locationA 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)
2Build one schedule that shows each person's hours at all locations before publishingAll hours for the employer are totaled (29 CFR 778.103)
3Schedule shared staff to 38 hours, not 40, to leave room for late closesEach workweek stands alone; next week's short hours do not offset this week (29 CFR 778.104)
4Check daily overtime states separatelyCalifornia 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)
5Stop unscheduled early starts and late stays at the door, not on the timesheetWork suffered or permitted is work time, and management must enforce its rule against it (29 CFR 785.11, 785.13)
6Give extra shifts to part-time staff under 40 before full-time staffOvertime applies only to hours over 40 in the workweek (Fact Sheet #23)
7Watch employees who work two roles at two ratesThe 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)

EmployeeStore A hoursStore B hoursStore C hoursTotalOver 40Action
J.R.22240466Move 6 hours to K.L.
K.L.1808260Can take up to 12 more before 38
M.T.0326380At 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

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