Are Salaried Employees Also Entitled to Overtime?

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If you are classified as non-exempt and work more than 40 hours in a week, you are entitled to overtime pay. Under the Fair Labor Standards Act (FLSA) and New York Labor Law, overtime pay is 1.5 times an employee’s regular hourly rate of pay. 

However, there are exceptions to these rules depending on the nature of the job or the business. Salaried employees such as managers, supervisors, directors, administrative workers, professionals, and outside sales employees are typically exempt from the overtime provisions of the FLSA

Overtime Exemptions for Salaried Employees

The U.S. Department of Labor Wage and Hour Division and the FLSA are clear about the exemptions from overtime pay for salaried employees. According to the FLSA, salaried employees are not entitled to overtime pay. A “white collar” salaried employee is someone who receives a fixed amount of income each pay period. 

To qualify for executive, administrative, and professional employee exemption, you must be compensated with a salary or fee at a rate no less than $455 per week or $23,660 per year. As an executive, you must have the authority to hire or fire other employees, customarily and regularly direct the work of at least two or more other full-time employees or their equivalent, and manage a recognized department or subdivision of the organization.  

As an administrative employee, you must perform office or non-manual work related to the management or general business operations of the employer. And as a professional, your duty involves the advanced knowledge in the field of science or learning; you must perform work which requires that advanced knowledge, typically intellectual in nature. If you are an outside sales employee, your primary duty must be making sales and regularly engaging in sales activities away from the employer’s place of business.

Have I been misclassified as exempt? 

Because of your position, you are probably involved in your company’s decision-making, training and supervising of employees, and managing operations to maintain productivity and profitability. Your work hours are also generally not tracked. 

If you hold any of the exempt job titles but do not perform any tasks as described by the FLSA, you may have been misclassified as an exempt employee. This can happen by mistake or intentionally. In either case, you are entitled to receive overtime pay and recover unpaid wages. You are also entitled to overtime pay if you earn less than $455 per week, regardless of your profession or role. 

As a salaried employee, you might not be eligible for overtime pay. However, if you’ve been misclassified as an exempt employee, either by mistake or intentionally, you should consult an overtime lawyer to discuss if you are properly classified as an “exempt” employee.Contact an attorney at Cilenti & Cooper, PLLC by sending an email to info@jcpclaw.com or calling (718) 841-7474.

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