The image of a salaried employee often evokes a fixed paycheck—steady, predictable, and consistent. But what if that steady paycheck is stretched thin by increasing workloads, late nights, and weekend hours? Do salaried employees get overtime pay? The answer is more nuanced than many assume.
This guide breaks down the legal frameworks, common misconceptions, and actionable steps you can take to understand your rights. Whether you’re logging 50-hour weeks or simply curious about the law, knowing your classification is essential for fair compensation.
Understanding Overtime Eligibility for Salaried Employees
Many believe that a salary automatically excludes overtime pay. This is false for millions of workers. Your eligibility depends not just on how you’re paid, but how your job is classified.
Exempt vs. Non-Exempt Employees
Exempt Employees
- Not entitled to overtime under the Fair Labor Standards Act (FLSA).
- Typically in executive, professional, administrative, outside sales, or high-tech roles.
- Paid for the job, not the hours.
Non-Exempt Employees
- Covered by overtime laws.
- Must be paid time-and-a-half for every hour worked over 40 in a workweek.
Key Insight: Receiving a salary does not automatically make you exempt. Many salaried workers are legally non-exempt.
Key Factors Determining Overtime Rights
- Salary Basis Test
- Employees must earn a minimum weekly salary (federal threshold: $684/week in the U.S., though some states set higher limits).
- Duties Test
- Evaluates your actual job responsibilities, not your title.
- Does your job involve management, independent decision-making, or specialized expertise?
- Job Classification Accuracy
- Misclassification is common. An “assistant manager” doing mostly cashier work? Likely non-exempt.
For official guidance, visit: U.S. Department of Labor Overtime Rules.
Common Myths About Salaried Overtime
- Myth 1: “Salaried means no overtime.”
False. Only exempt roles lack overtime eligibility. - Myth 2: “Working over 40 hours = automatic overtime.”
Not true for exempt employees. - Myth 3: “My job title decides my status.”
Reality: Duties and salary level are what matter.
When Salaried Employees Are Entitled to Overtime
If you’re salaried but fail the FLSA exemption tests, you’re a non-exempt salaried employee.
Example Calculation
- Weekly salary: $800
- Regular hourly rate = $800 ÷ 40 = $20/hour
- 10 hours overtime = 10 × ($20 × 1.5) = $300 extra pay
When Salaried Employees Are Not Entitled to Overtime
- Executive roles managing teams with hiring/firing power.
- Highly compensated professionals (e.g., doctors, lawyers, senior engineers).
- Independent contractors (not considered employees under FLSA).
Actionable Steps to Protect Your Overtime Rights
- Audit Your Duties
- List your daily tasks and compare them with FLSA exemption criteria.
- Review Your Pay Stub & Offer Letter
- Look for “exempt” or “non-exempt” classifications.
- Ask HR or Management for Clarification
- Phrase it professionally: “Could you help me understand how my position is classified under FLSA?”
- File a Claim if Misclassified
- Contact your state labor department or the U.S. DOL.
- Document Your Hours
- Keep a record of hours worked beyond 40/week as evidence.
Expert Insight
“Misclassification is one of the most common wage violations. Employees should never assume their salary makes them exempt.”
– John Smith, Labor Attorney
Key Takeaways
- Salaried ≠ automatically exempt.
- FLSA sets strict salary and duty tests for exemption.
- Non-exempt salaried employees are entitled to time-and-a-half overtime pay.
- Always check both federal and state overtime laws—some states are more generous.
Final Word: Don’t Leave Money on the Table
Working 50+ hours a week without fair compensation? You might be owed thousands in unpaid overtime. Educate yourself, ask questions, and if needed, act. Being salaried should never mean working for free.
