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California daily overtime and double time: what goes in code TT

Last reviewed October 6, 2026, against FS-2026-13 (August 2026) and the 2026 W-2/W-3 instructions.

California and a few other states require overtime after 8 hours in a day and double time after 12. Code TT only includes the overtime the federal FLSA requires: hours over 40 in the workweek, at half the regular rate.

General information, not tax or legal advice. The employer remains responsible for its Forms W-2. IRS FAQs are not binding law. Check your facts with a CPA or your payroll provider. Halfmark is not affiliated with the IRS.

The rule

Overtime pay required by state law but not by 29 U.S.C. 207 is not qualified overtime. If the employer pays more than the FLSA requires, “only the amount minimally necessary to satisfy 29 USC § 207 is qualified overtime compensation” (FS-2026-13, Q16). Daily overtime premiums are excluded from the regular rate and can be credited toward FLSA overtime (29 U.S.C. 207(e)(5), 207(h); 29 CFR 778.202).

Example 1: four 12-hour days

$20 an hour, 4 days × 12 hours = 48 hours. California daily overtime: 4 hours a day over 8 = 16 hours at 1.5×. Premium paid: 16 × $10 = $160.

FLSA hours over 408
Regular rate$20 (daily overtime premiums are excluded)
Code TT8 × ½ × $20 = $80.00
Premium paid beyond the FLSA minimum$160 − $80 = $80 (not code TT)

Example 2: a double-time day

One 14-hour day and four 8-hour days = 46 hours at $20. The long day has 4 hours of daily overtime (hours 9–12) and 2 hours of double time (after 12). Premium paid: 4 × $10 + 2 × $20 = $80.

FLSA hours over 406
Code TT6 × ½ × $20 = $60.00
Not code TT$20 (the part of the premium above the FLSA minimum)

Weeks under 40 hours

A week of four 10-hour days has 8 hours of California daily overtime but only 40 FLSA hours: code TT is $0 for that week, even though overtime was paid.

Weekend, holiday and sixth/seventh-day premiums

These are true overtime premiums only if paid at no less than one and one-half times the rate for like work on other days (29 CFR 778.203). A lower premium (for example $2 more per hour on Sundays) is a regular-rate item like a shift differential (29 CFR 778.207): it raises the regular rate and is not creditable. Halfmark lets you set the multiplier for “other premium hours”; below 1.5 it treats the extra as includable pay.

What to compare

Check that the provider separates FLSA weekly overtime from state daily overtime when it fills in code TT. A shortcut of “all overtime pay ÷ 3” would give $160 in Example 1 ($480 of daily overtime pay ÷ 3) instead of $80, and $80 in a 40-hour week of four 10-hour days ($240 ÷ 3) where the correct code TT is $0. Halfmark shows the premium paid, the FLSA amount, and the non-FLSA part per employee and per pay date.

Separate state overtime from FLSA overtime: import registers and hours, recompute code TT per workweek, and compare with your provider. Runs in your browser; payroll data is not uploaded.

Open the worksheet

Sources