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Overtime Exempt vs. Nonexempt: Why Salary Alone Is Not Enough

Being paid a salary does not automatically remove overtime rights. Learn the salary, duties, and classification issues that affect unpaid overtime claims.

March 26, 20266 min read

Salary Does Not Automatically Mean Exempt

Many workers assume a salary means no overtime. That is often wrong. Under the FLSA, exemption usually depends on pay structure, salary level, and job duties. If the duties test is not met, a salaried worker may still be owed overtime.

The Duties Test Matters

Executive, administrative, professional, outside sales, and certain computer exemptions each have specific requirements. A title like manager or analyst does not decide the issue. Daily tasks, authority, judgment, and business role matter.

The Overtime Rule Landscape

The Department of Labor issued a 2024 overtime rule, but a federal court vacated that rule. Workers should evaluate claims under the current rules that apply to their work period and state, because state overtime laws may provide additional protection.

Common Misclassification Patterns

Red flags include assistant managers who mostly perform hourly tasks, coordinators without real independent judgment, salaried workers whose pay is docked improperly, and employees required to work long off-the-clock hours.

Evidence to Save

Save job descriptions, schedules, pay stubs, time records, messages assigning work, and notes showing what you actually did each week. If you routinely worked more than 40 hours, get a free consult about unpaid overtime.

Think You Have a Case?

This article is for informational purposes. For advice specific to your situation, get a free consult with an experienced employment attorney.

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