The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Laws For Overtime Pay
Are salaried employees entitled to overtime pay? Although it may not be the main question many salaried workers would ask, it is, however, important to know if overtime pay is available as a salaried worker.
To put it quite simply, the answer to this question is, yes, salaried employees are entitled to overtime pay. Salaried employees are entitled to this overtime pay under the Fair Labor Standards Act (FLSA). However, there are some factors that the Labor Of Department puts more emphasis on when it comes to whether or not you should be eligible for overtime pay. One of the things that are put under consideration is the work that you do and whether or not overtime is available. With this in mind, knowing whether or not overtime pay is for you as a salaried worker becomes more complicated than meeting a certain salary threshold.
Another important thing to know is whether or not an employee is exempt. If an employee is not covered by the FLSA’s overtime and minimum wage requirement, they are considered “exempt”. In general, many exempt workers will fall under the law’s “white collar exemptions”. White-collar exemptions are the ones that determine which workers are not entitled to overtime. One of the three white collar exemption criteria is receiving a salary. However, many salaried employees do not meet the other two, therefore, making them eligible for overtime pay.
To learn more about overtime on a salary, the infographic below helps you answer three questions that will let you know whether or not you are entitled to overtime pay as a salaried employee.
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Overtime on a Salary 101
Lots of employer say that workers who make a salary are eligible for overtime pay. That’s always been a lie.
Under federal law, only a portion of salaried employees are “exempt,” left out of overtime. Being “exempt” isn’t just about how you get paid or how much you make. It’s about what you do.
If you’re truly exempt from overtime, you’ll say “yes” to these three questions:
- do I make a salary? You get paid a pre-arranged amount of money every pay., no matter how many hours you have to work.
- Is my salary at least $455 per week?
- do I perform “exempt” job duties?
- manage your business, or a department within a business
- regularly direct the work of at least two or more other full-time employees
- have some real input on personnel decisions, like hiring and firing
- perform office (or other non-manual work) integral to the management or business operations of an enterprise
- regularly exercise discretion and independent judgment in matters of significance
- perform work that requires Advanced knowledge, tasks traditionally considered “intellectual”
- consistently exercise discretion and independent judgment
- usually have an advanced degree in their field of employment
- perform work that requires invention, imagination, originality, or talent
- work in “recognized” fields of artistic or creative Endeavor, like music, writing, acting, or the visual arts
These three conditions are all equally important. If you can’t say “yes” to all three questions, you probably deserve overtime pay.
Designed by wageadvocates.com
* exemptions may also exist for some computer employees, outside sales people, and workers who make it at least $100,000 per year.
About the Author
Tim Becker, Partner at Minneapolis’ Johnson // Becker PLLC, and lead sponsor of WageAdvocates.com. He is committed to providing clients effective, aggressive legal representation, and has prosecuted numerous individual FLSA violation claims.