10 Areas State & Local Laws May Be Tougher Than Federal Law

While there are a host of federal laws and regulations with which employers must comply, many state and local jurisdictions also have laws and regulations that govern the employment relationship. Understanding which laws apply to your business when these laws conflict can be a significant challenge. To help, we've identified 10 areas in which your state and/or local law may be more generous to the employee. In general, when laws conflict, the law most generous to the employee applies.  

#1: Minimum wage

Under the federal Fair Labor Standards Act (FLSA), employers must pay non-exempt employees a minimum wage of at least $7.25 per hour. However, more than 20 states and 60 local jurisdictions have higher minimum wages.

If an employee is subject to more than one minimum wage requirement, you must generally comply with the rate most generous to the employee.

For example, if the employee works in a location where the state minimum wage is $10.00 and the local minimum wage is $11.00, you must generally pay the employee at least $11.00 per hour for the time worked in that city, since it is higher than the state and federal minimum wage rates.

Additionally, if your business is located in one state, but you have employees (such as remote workers) working in another jurisdiction, the minimum wage in the location where the employee performs work generally applies.

Check your state and local law for details.

#2: Overtime

The FLSA requires employers to pay non-exempt employees 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. Some states require overtime pay in additional circumstances and at different rates. These states include Alaska, California, Colorado, Florida, Nevada and Oregon.

Alaska

In Alaska, if a non-exempt employee works more than eight hours in a single day (and/or more than 40 hours in a single week), they must be paid 1.5 times their regular rate of pay for those extra hours worked. 

California

California requires employers to pay non-exempt employees 1.5 times their regular rate of pay for hours worked over eight in a workday (and over 40 hours in a workweek), and for the first eight hours of work performed on the seventh consecutive workday in a single workweek. California also requires double pay for all hours worked over 12 in a workday, and over eight hours on the seventh consecutive workday in a workweek.

Colorado

Non-exempt employees in Colorado are entitled to 1.5 times their regular pay rate if an employee works more than 40 hours in a week, 12 hours in a day, or 12 hours consecutively.

Florida

Manual laborers in Florida are entitled to extra pay when they work more than 10 hours in a day, unless a written contract has been signed by the person employed and the employer requiring a less or greater number of hours of labor to be performed daily.

Nevada

Non-exempt employees in Nevada who are paid less than 1.5 times the minimum wage rate as their regular rate of pay are also entitled to overtime pay whenever they work more than 40 hours in a workweek or eight hours in any workday. 

Oregon

In Oregon, non-exempt employees of manufacturing establishments must receive overtime after 10 hours in a day. Special overtime rules also apply to certain work contracted for by government agencies, public works projects, canneries, and some hospital employees.

Check your state law to ensure compliance.

#3: Exemptions from overtime

Under the FLSA, to be classified as exempt from overtime, the employee must generally:

• Meet the minimum salary requirement (currently $684 per week under the FLSA);
• Receive their full salary in any week they perform work, regardless of the quality or quantity of the work; and
• The employee's primary duties must meet certain criteria.

Some states have enacted their own tests for exemption. For example, some require higher salaries to be classified as exempt and/or have stricter duties tests.

In 2025, the following states have a minimum salary requirement that is currently higher than the federal one.

Alaska

To be classified as exempt from overtime under state law (Alaska Statute 23.10.055), bona fide administrative, professional and executive employees must receive a weekly salary of at least $1,040 per week from July 1, 2025 through December 31, 2025.

California

To qualify for the administrative, professional and executive exemptions in California, employees must receive a salary of at least $1,320 per week.

Colorado

In Colorado, the minimum salary required to qualify for the executive/supervisor, administrative and professional exemptions under state law is $1,086.25 per week.

Maine

To be classified as exempt from overtime under state law, administrative, professional and executive employees must receive a weekly salary of at least $845.21.

New York

In New York, the minimum salary requirement for the executive and administrative exemptions from overtime is $1,237.50 per week in New York City and Nassau, Suffolk, and Westchester counties. In areas other than New York City and Nassau, Suffolk, and Westchester counties, the minimum salary requirement for the executive and administrative exemptions is $1,161.65 per week in 2025.

Washington

In Washington, employers with 50 or fewer employees must pay a salary of at least $1,332.80 per week in 2025 for the employee to meet the minimum salary requirement for overtime exemption. For larger employers, the minimum salary requirement for overtime exemption is $1,499.40 per week in 2025. 

Before classifying an employee as exempt from overtime, make sure they satisfy all applicable tests.

#4: Meal periods and rest breaks

Under federal law, there is no requirement for employers to provide meal periods or rest breaks , but there are rules for employers that do offer them. For example, the FLSA generally requires rest breaks (defined as any period lasting 20 minutes or less) to be paid.

Meal periods generally must be paid unless:

• They are at least 30 minutes in duration without interruption; and
• The employee is fully relieved of all duties for the purpose of eating regular meals.

Many states, however, require employers to provide meal periods and/or rest breaks and have stricter rules on when and how they must be provided. Check your state law for additional guidance.

Also keep in mind that under federal law, employers must provide reasonable break time for employees to express breast milk for their nursing child for one year after the child's birth each time they have the need to express milk. Some states and local jurisdictions have more generous rules that must be followed.

#5: Independent contractors

Strict federal and state tests must be satisfied for an individual to be considered an independent contractor. The most commonly used federal test is the Internal Revenue Service (IRS) Common Law Test, under which various factors are considered and the unique circumstances of each case are weighed and balanced.

Some states have adopted stricter tests, such as the ABC test, which is generally a more difficult test to satisfy since all three factors must be met. Make sure an individual satisfies all applicable federal and state tests before classifying them as an independent contractor.

#6: Deductions

Under the FLSA, employers may make deductions from non-exempt employees’ pay for uniforms, tools and equipment, provided the deduction doesn't reduce their pay below the minimum wage or cut into overtime pay. By contrast, some states require employers to pay the full cost of required uniforms, tools and equipment. However, some states make exceptions for certain types of tools or equipment, such as tools and equipment customarily required by the employee's trade. Check your state law for more information.

#7: Equal employment opportunity

Federal nondiscrimination laws prohibit discrimination on the basis of sex, age (40 or older), disability, race, color, religion, genetic information, pregnancy, and national origin.

Many states and local jurisdictions have enacted their own nondiscrimination laws that offer greater protections for workers, such as protecting more characteristics and/or covering smaller employers. For example, many federal protections from discrimination apply to employers with 15 or more employees, but Colorado’s principal nondiscrimination law applies to all employers. Make sure you understand and comply with all of the nondiscrimination laws that apply to your employees.

#8: Sick leave and vacation

Federal law generally doesn't require private employers to offer paid sick leave to employees, but nearly 20 states and more than 20 local jurisdictions do.

No federal, state or local law expressly requires vacation leave specifically, but most employers offer at least some of this paid time off to employees.

Employers that do offer vacation leave may be subject to certain rules. For example, several states explicitly prohibit policies that force employees to forfeit unused vacation or paid time off (also known as use-it-or-lose-it policies). In these states, employers must generally pay employees for accrued, unused vacation at the time of separation and/or may require carryover of unused time from year to year.

In addition, a handful of states and local jurisdictions have enacted laws that entitle employees to paid time off for any reason. Eligible employees who work in these locations may use this paid leave for vacations, illnesses or any other situation they want. These states and local jurisdictions include the following.

#9: Job ads, applications and interview questions

Many jurisdictions have enacted laws that restrict employers from asking an applicant about their criminal background on application forms. Some go even further, restricting these types of questions until after the employer makes a conditional job offer. These restrictions are often referred to as "ban the box" laws.

Separately, a number of state and local jurisdictions have enacted laws that generally prohibit employers from asking about an applicant's salary history and/or basing pay decisions on pay history.

Several states and local jurisdictions require private sector employers to disclose the pay range for a position to an applicant or employee. These laws generally have one or more of the following requirements:

1. Employers must provide the salary range upon request of external/internal applicant.
2. Employers must provide salary range to applicants automatically at a certain point in the hiring process (e.g., at the time a job offer is made).
3. Employers must include salary range information in any job posting.

#10: Final pay

Under federal law, final pay is generally due by the next regular payday, but many states require final pay sooner. In some states, this timeframe differs depending on whether the employee initiates separation (voluntary termination) or the employer initiates separation (involuntary termination).

For example, for involuntary terminations in Texas, final pay is due within six days of the date of termination. When an employee quits or resigns, they must be paid in full no later than the next regularly scheduled payday after the effective date of the resignation or retirement.

Conclusion

These are just some of the areas in which state and local law can differ from federal law. Typically, where these laws conflict, the law most generous to the employee applies. Make sure you understand which laws apply to your employees, implement policies and practices accordingly, and consult legal counsel as needed.