Being salaried doesn’t always mean you lose overtime rights
Working long hours without extra pay can leave you wondering whether you are entitled to overtime. If you receive a salary, you might assume that your employer does not have to pay you more when your workweek stretches past 40 hours. But that assumption is not always correct. Here are the key points to understand before deciding that your salary means you are not entitled to overtime.
Salary does not automatically make you exempt
A salary is only one part of the exemption analysis, so receiving a fixed paycheck does not automatically remove your overtime protections.
If your position does not meet the requirements for an overtime exemption, working beyond 40 hours in a single workweek generally entitles you to additional compensation at a higher rate. That generally equals one and a half times your regular rate of pay for those extra hours.
Understanding the basic Fair Labor Standards Act (FLSA) overtime rules can help you recognize when your pay arrangement may not tell the whole story. Your employer cannot make you exempt simply by giving you a salaried title or changing your job title to something that sounds managerial or professional.
Your job duties help determine overtime status
Your actual work responsibilities matter when determining whether an FLSA exemption applies. The U.S. Department of Labor states that job titles do not determine exempt status and that an employee’s specific duties and compensation must satisfy the requirements for an exemption.
For example, calling you a manager does not necessarily make you exempt if your day-to-day responsibilities do not meet the requirements of an applicable exemption. The same principle applies to administrative, professional and certain other positions.
Exempt and non-exempt status affect overtime rights
The difference between exempt and non-exempt status determines whether the FLSA generally requires overtime pay. If you are non-exempt, you generally qualify for overtime when you work more than 40 hours in a workweek. If you are exempt, you generally do not receive overtime under the FLSA when your position satisfies the applicable exemption requirements.
That distinction makes your actual responsibilities important. A salary by itself does not settle the question.
Misclassification can mean unpaid back pay
If your employer incorrectly classifies you as exempt, you could have a claim for unpaid overtime. The FLSA generally allows you to recover unpaid overtime from the two years before you bring a claim, while a willful violation can extend that period to three years.
If you suspect you have been misclassified, a wage theft attorney can review your pay structure, duties and work hours to determine whether you received the overtime pay required by law.
Take a closer look at your classification
If you are working long hours without overtime, reviewing your job duties and pay records with an attorney can help determine whether your classification actually complies with the FLSA. Understanding your salaried employee overtime rights can also help you identify whether your employer’s classification matches the work you actually perform.