What if I am a ‘salaried’ employee? Do I Get Overtime Pay?
The manner in which an employee is paid does not determine their right to overtime pay. Rather, it is an employee’s job duties, and in most cases their salary (not less than $455 per week and $684 per week as of 1/1/20), that determine if they are exempt from the overtime rules. Even if you were told that you would be paid a certain salary regardless of how much you work, you may still be entitled to overtime pay. Your right to overtime pay cannot be bargained away, avoided or refused.
This page gives further information on the job duties required for the Executive, Administrative, and Professional overtime exemptions which are the most common salaried overtime exemptions.
What if I am a salaried employee but my pay stub shows an hourly amount, Should I Be Paid Overtime?
Often an employer will break down an employee’s salary into an hourly amount based on 40 hours to accommodate the payroll system that the employer uses. The fact that your pay stub shows an hourly amount does not necessarily mean you are being paid hourly and entitled to overtime pay.
If you are paid on a salary basis, you should receive the same amount of pay for each week that you work regardless of the numbers of days or hours you work.
For example: If your weekly salary is $500 per week (which breaks down to $12.50 per hour based on a 40 hour week) and you work 35 hours for the week, you should still receive $500 in wages if you are paid on a salary basis. In this scenario, your pay stub may still show 40 hours in order for the payroll system to generate your set salary amount. If you are paid on an hourly basis, you would only receive $437.50 (35 hours x $12.50).
What if I agreed to work for a ‘flat salary’? Does This Mean I Am Disqualified from Overtime Pay?
If an employee is covered by the FLSA, and most are, an employer cannot disregard an employee’s overtime hours even if the employee agreed to work for a fixed amount of pay, regardless of the number of hours actually worked. Unless an overtime exemption applies, salaried employees are still entitled to overtime pay. While the method of calculating the overtime due to a salaried non-exempt employee may vary, the employee is entitled to overtime pay for all hours over 40 worked during any given work week.