Overtime Myth - Employees Being Paid A Salary Are Not Entitled to Overtime

Many employees wrongly believe that if they are salaried, they don’t have the right to overtime. This is simply false! Being paid a salary is only one component of the determination of whether or not an employee is entitled to overtime pay.

Generally, under the Fair Labor Standards Act (FLSA), employees are considered “exempt” from overtime if they are paid a salary of at least $455 per week without deductions for time off AND they perform certain duties falling within one of the recognized exemptions as defined by the FLSA. There are a number of specialized exemptions but as a general rule, employees who actually perform production work (clerical, manual labor, inside sales, many assistant manager duties, factory production work, etc) are entitled to be paid overtime for all hours worked over 40 per week.

Unfortunately some employers try to take advantage of employees by telling them that they are "salaried" and therefore not entitled to overtime.