Salaried employees can get overtime if they are classified as non-exempt under the Fair Labor Standards Act. Exempt employees do not qualify for overtime pay, regardless of salary. Overtime eligibility depends on job duties, salary level, and exemption status. Meeting the salary threshold alone doesn’t guarantee exemption from overtime rules.
Understanding Federal Overtime Laws
The Fair Labor Standards Act (FLSA) governs overtime pay in the United States. According to the FLSA, employees must receive time and a half for hours worked beyond 40 in a given workweek unless they qualify as exempt. Many salaried employees assume they’re automatically exempt, but that’s not always the case.
Imagine being offered a salary, only to later find out you’re entitled to more. Confusing, right? The law draws a clear line between exempt and non exempt employees. And it’s not based solely on salary. It’s about job duties, hours worked, and how you’re paid.
Entities like the Department of Labor enforce these labor laws. The fair labor standards exist to ensure compliance with wage and hour laws, especially for hourly and salaried employees. Misclassification often leads to wage disputes and unpaid overtime claims.
Defining Salaried Employees
So what does it mean to be salaried? A salaried employee is paid a fixed amount per pay period, regardless of the number of hours worked. This differs from hourly employees, who are compensated based on hours.
But here’s the catch: being salaried doesn’t mean you can work unlimited hours without extra pay. Many salaried employees still qualify for overtime, especially if they don’t meet the duties test or salary basis test.
Full time employees in salaried positions may still be non exempt. Job duties play a huge role. If your responsibilities don’t align with one of the FLSA’s exempt categories, you’re likely entitled to overtime pay.
Comparison chart summarizing key aspects of salaried employees, their overtime eligibility, and the impact of recent legal changes:
| Aspect | Details & Thresholds | Implications |
|---|---|---|
| Overtime Basics (FLSA) | Non-exempt employees (hourly or salaried) must be paid 1.5× their regular rate after 40 hours/week. (webapps.dol.gov) | Even salaried workers can earn overtime if they’re non-exempt. |
| Determining Exemption | Three-part test: salary basis + salary level + duties test. | Meeting only one criterion isn’t enough—all three must apply. |
| Current Salary Threshold | The 2019 threshold remains: $684/week ($35,568 annual). | Employees below this are automatically non-exempt, regardless of job duties. |
| 2024–25 Proposed Increase | Proposed thresholds: $844/week ($58,656) from January 1, 2025. | Would reclassify millions unless employers raise salaries or apply overtime. |
| Litigation Status | Texas federal court vacated the 2024 rule; 5th Circuit upheld DOL’s use of salary as a proxy. | Enforcement remains at the 2019 threshold; the proposed increases are legally blocked for now. |
| Highly Compensated Employees (HCE) | Current HCE threshold: $107,432; proposed: $151,164/year. | These employees are exempt only if duties test is met, despite high pay. |
| Salaried Non-Exempt | Telephone, IT, or other professionals may be paid a salary below threshold and still be non-exempt. | They earn guaranteed pay + overtime. |
| Overtime Calculation Methods | – Basic: salary ÷ agreed hours = regular rate × 1.5× OT hours – Fluctuating workweek: fixed salary + 0.5× regular rate for OT hours (eddy.com) | Employers must clearly define salary coverage hours to compute accurately. |
| Scope of Duties Test | Job duties must match FLSA categories (EAP, computer, outside sales); salary alone doesn’t qualify. | Being paid a salary doesn’t guarantee exemption—you must pass the duties test too. |
The Overtime Eligibility Tests
Three main tests determine whether salaried workers qualify for overtime:
- Salary Basis Test: Are you paid a consistent salary each pay period?
- Salary Level Test: Do you earn at least $684 per week ($35,568 per year)?
- Duties Test: Do your job duties fall under the categories of executive, administrative, professional, computer, or outside sales roles?
If you fail any of these, you’re classified as non exempt. That means you’re eligible for overtime pay.
Let’s say Emma is a salaried marketing coordinator earning $40,000 per year. She doesn’t manage anyone and spends most of her time executing assigned tasks. Despite her salary, she doesn’t pass the duties test and is therefore entitled to overtime.
Common Misconceptions
You might think, “I’m salaried, so I don’t get overtime.” Wrong. That’s one of the most widespread myths in the workplace.
The phrase “salaried employees get paid the same amount regardless of hours worked” creates confusion. While true for exempt employees, it doesn’t apply to non exempt workers—even if they’re salaried. Non exempt salaried workers must be paid overtime for hours beyond 40 in a week.
Don’t assume your salary protects your employer from overtime obligations. That misconception has led to numerous lawsuits, back pay orders, and penalty fines under federal overtime law.
The Gray Areas: Tech and Admin Roles
For example, a software engineer who designs systems and earns more than $684/week may be exempt. But an IT support technician making the same salary could be non exempt if their primary duty doesn’t involve high-level systems work.
Administrative roles are also tricky. To be exempt, administrative employees must exercise discretion and independent judgment on significant matters. Answering phones or processing paperwork doesn’t count.
Ensuring Compliance: Employers and Employees
Employers must evaluate roles carefully to ensure compliance with overtime laws. Misclassifying exempt vs. non exempt status can lead to hefty fines and audits.
Employees, on the other hand, should:
- Review their job description
- Compare their salary to the minimum threshold
- Assess whether their duties meet exemption criteria
Labor attorneys and HR departments can help clarify confusion. Keeping detailed records of hours worked also strengthens your case if you suspect misclassification.
State-Level Variations
Federal law sets a baseline, but many states impose stricter rules. California, for instance, requires a minimum salary of $66,560 for exempt status.
New York and Washington also have higher thresholds. If your state has stricter labor laws, they override federal standards. Check with your state’s labor board to determine local eligibility for overtime pay.
Misclassification and Legal Remedies
What happens if you’re wrongly classified as exempt? You’re probably entitled to unpaid overtime, sometimes going back years.
You can file a wage claim with the U.S. Department of Labor or your state agency. If proven, your employer may owe back wages, penalties, and interest. The process usually involves:
- Filing a formal complaint
- Providing documentation of hours worked
- Participating in an investigation
Thousands of workers recover compensation this way each year.
Real-World Case Studies
Consider Jamie, a salaried assistant manager at a retail store. She earned $38,000 a year and worked 50–60 hours weekly. Her title sounded managerial, but her duties involved stocking shelves and running a register. She didn’t supervise anyone.
Jamie filed a complaint and won back pay for overtime, because she didn’t meet the duties test. Stories like hers are increasingly common as awareness grows.
How to Calculate Overtime as a Salaried Worker
If you’re non exempt and salaried, calculating overtime starts with your hourly rate. Divide your weekly salary by 40 hours. Multiply that rate by 1.5 to get your overtime pay.
Example:
- Weekly salary: $800
- Hourly rate: $800 ÷ 40 = $20
- Overtime pay: $20 × 1.5 = $30/hour
If you worked 50 hours, you’d earn 10 hours × $30 = $300 in overtime. That’s on top of your base salary.
Salaried Status: Perks and Tradeoffs
Being salaried isn’t all bad. Salaried positions often come with benefits like:
- Healthcare benefits
- Paid time off
- Predictable pay periods
- Stable employment
- Flexibility in work schedule
However, the risk lies in being overworked without proper compensation. Know your rights—and if in doubt, ask questions. Transparency protects both employers and employees.
Popular Questions
Below are common questions.
Can salaried employees receive overtime pay?
Yes, salaried employees can receive overtime pay if they are classified as non-exempt under the Fair Labor Standards Act. Their exemption status depends on meeting the salary basis test, salary threshold, and job duties test. If any of these are not met, even salaried workers are eligible for overtime compensation.
What determines if a salaried worker is exempt from overtime?
Exemption from overtime hinges on three factors: the salary basis test, meeting a minimum salary level, and the primary duty test. If a salaried employee fails any of these, they are considered non exempt and must be paid overtime for hours worked beyond 40 in a given workweek.
How do labor laws define overtime for salaried workers?
Federal labor laws require employers to pay non exempt employees 1.5 times their hourly rate for hours worked over 40 per week. Salaried workers are not automatically exempt. The fair labor standards act uses both pay structure and job duties to assess who is entitled to overtime pay.
Are highly compensated employees always exempt from overtime?
Not necessarily. Highly compensated employees earning over $107,432 annually must still meet part of the duties test to be exempt. Simply having a high annual salary does not automatically remove their eligibility for overtime under federal overtime law.
What if an employer misclassifies a salaried employee as exempt?
Misclassified employees may be entitled to back pay for unpaid overtime. Employees should check if their job duties match exemption criteria. If not, they can file a claim with the Department of Labor. Employers must ensure compliance with all federal and state overtime rules.
Do computer employees qualify for overtime pay?
Some computer employees are exempt, but only if their primary duties involve systems analysis, software engineering, or similar tasks, and if they earn at least $684 per week or $27.63 per hour. Others may still be non exempt and eligible for additional compensation for overtime hours.
Final Thoughts
The question “do salaried employees get overtime?” has no one-size-fits-all answer. But one thing is clear: the fair labor standards act provides robust protections for workers, regardless of how they’re paid.
Know your classification. Understand the duties test. Track your hours worked. And if you believe you’re owed unpaid overtime, don’t stay silent. Whether you’re an hourly worker or salaried professional, labor laws exist to ensure fair pay for all.
