Summary: Exempt workers are not entitled to overtime, but non-exempt workers should receive overtime pay when they exceed 40 hours per week. If your employer is trying to skirt overtime rules, you need to secure aggressive legal representation as soon as possible.
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The Fair Labor Standards Act (FLSA) establishes a wide range of protections for workers, including those concerning overtime pay. Numerous factors, including salary status, will determine whether an employee is exempt or non-exempt from overtime requirements.
If you believe you are owed unpaid overtime wages, you should consult a seasoned employment lawyer. An attorney who is well-versed in overtime laws can determine whether your employer is illegally withholding overtime pay and help you pursue all available legal options accordingly.
How Salary Status and Other Factors Impact Eligibility for Overtime
Whether or not an employee is eligible for overtime depends on whether they are classified as exempt or non-exempt under the Fair Labor Standards Act. Exempt employees are not required to be paid overtime.
To clarify how these classifications work, here are some key factors that impact eligibility for overtime:
- Exempt workers must meet specific job duties and salary level requirements
- As of July 1, 2024, the minimum salary threshold for exempt workers increased from $684 per week to $844 per week.
- This salary threshold will rise again on January 1, 2025, to $1,128 per week*
- Exempt employees are generally paid a higher, more stable salary and often work in professional, administrative, or executive roles
- Workers who are salaried and whose pay doesn’t fluctuate based on hours worked or productivity are more likely to be exempt from overtime pay
Workers who are paid hourly and exert minimal control over their daily duties or job tasks should be classified as non-exempt. This means that they must be paid overtime if they work more than 40 hours a week.
Common Examples of Exempt vs. Non-Exempt Workers
Determining whether an employer has wrongfully classified an employee as exempt from overtime can be complicated. The following individuals are likely not entitled to overtime and may be classified correctly by their employer as exempt:
- Individuals who work in so-called white-collar jobs involving management, supervision and business decision making, and who earn at least the minimum required salary
On the other hand, certain workers are almost always non-exempt and should be entitled to overtime pay. These can include:
- Workers involved in roles requiring manual labor
- Workers involved in other non-management and non-supervisory jobs
- Workers whose pay is docked if they miss any time
- Workers whose boss controls most of their daily tasks
- Workers who earn less than the minimum required salary for exemption
Individuals who fall into any of the above categories of jobs and who are not receiving overtime pay may have been misclassified by their employer. Overtime pay is equal to one-and-a-half times the regular hourly rate of pay that a non-exempt employee earns.
Common Signs of Misclassification for Overtime Purposes
There are numerous signs that can be used to determine whether an employee may have been misclassified as exempt or as an independent contractor for the purposes of overtime. Potential indications of misclassification for overtime include:
- Requiring employees to work off the clock
- Classifying an employee as a manager or supervisor without giving them these duties
- Neglecting to count all hours worked
- Paying regular wages instead of time-and-a-half
- Wrongfully classifying a worker as an independent contractor
Any of these actions could open an employer up to a wage theft claim for overtime backpay. Factors that can be used to determine whether an employee has been misclassified for overtime purposes include who makes decisions about work, who defines work hours, whether or not the worker provides a core business service, and who provides the equipment or supplies for those services.
For example, an independent contractor can typically take on work as they wish, while an employee must complete all work assigned to them. Both independent contractors as well as employees may sign contracts with a company, but the terms of these contracts will vary, such as provisions regarding exclusivity.
Independent contractors typically work for multiple clients, while employees must generally work for a single employer on an exclusive basis. Payment procedures can also be used to identify a misclassified employee. For instance, an employee should be paid regularly without the need to invoice their company, while an independent contractor will usually bill the company via invoicing.
Contact an Experienced Overtime Attorney
When employers fail to adequately compensate workers for overtime, employees can file a lawsuit seeking monetary damages, including double unpaid back overtime wages.
A lawyer can demand justice on your behalf and pursue damages you may be entitled to for an overtime violation. Start your free, confidential review today by using the chat or submitting an online form. We work on a contingency fee basis, which means you don’t owe us anything upfront, and we only get paid if we win.
*Federal Court Undoes New Salary Threshold Increases
A federal judge appointed by Donald Trump recently released a decision undoing the 2024 Department of Labor rule that increased the minimum salary threshold for exempt employees to $43,888 a year ($844 weekly) effective July 1, 2024, and to $58,656 a year ($1,128 weekly) effective January 1, 2025 (with annual increases thereafter). The court believed that the Department of Labor exceeded its authority by prioritizing salary over job duties when both salary and job duties are required to be considered. With the upcoming change in administration, an appeal is unlikely, and the 2024/2025 salary increases are now likely dead.
The decision means that the previous salary threshold from 2019 ($684 per week / $35,568 annually) will go back into effect. This decision does not, however, impact any salary threshold changes under state overtime laws (e.g., CA, NY, WA).
