The federal Fair Labor Standards Act (FLSA) allows employers to pay certain overtime “exempt” employees a salary without overtime. However, some salaried workers are not “exempt” and are eligible for overtime even though they are paid a salary. Payment of a salary alone does not mean that a worker is exempt from overtime.
The first step in analyzing whether a salaried worker is eligible for overtime is to determine if the worker’s duties qualify for an exemption. The most common exemptions are:
- Executive (supervises two or more full-time workers, authority to hire/fire)
- Administrative (manager exercises independent judgment and discretion on significant matters)
- Professional (has advanced knowledge in science or learning)
- Computer (programmer, systems analyst, but not a tech)
- Outside Sales (makes sales calls outside the office)
In addition to meeting the duties, the worker must be paid at least $684 per week in salary or $35,568.00 annually to qualify for the exemption ($455 per week prior to January 1, 2020).
Any employee who is paid a salary who either does not meet the requirements for the duties test for the Executive, Administrative, Professional, Computer, or Outside Sales exemption, or a worker who does meet the duties test but is not paid the minimum salary of at least $684 per week, may be eligible for overtime. For these workers, overtime is calculated by dividing the weekly salary by the number of hours worked to determine the regular rate and then multiplying one-half of the regular rate by all hours worked over 40 in that week.
Common examples of salaried jobs that may be eligible for overtime because they do not meet the duties test or weekly salary minimum are store managers, assistant managers, manager trainees, computer technicians, inside salespeople, administrative assistants, medical assistants, draftsmen, paralegals, and working foremen.
Contact our Baton Rouge, Louisiana Overtime Attorneys
Determining whether a salaried worker is eligible for overtime can be complicated. The duties test requires a detailed analysis of your job description and the actual duties that you perform. There are deadlines to file an unpaid overtime claim if you were paid salary and not paid overtime. For a free, confidential consultation to determine if you are or were a salaried worker who is eligible for overtime, contact the attorneys at Bohrer Brady, LLC. There are no legal fees or costs unless you receive a settlement.
