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Are salary employees compensated for overtime?

Are salary employees compensated for overtime?

Salaried employees can receive overtime payment just like employees who work and are paid hourly. Salaried employees may be exempt from overtime if they make a certain amount or perform specific duties that are not recognized as eligible for overtime pay.

When does an employer not have to pay overtime?

Employers don’t have to pay overtime to employees who are considered “Highly Compensated.” A highly compensated employee (HCE) is considered exempt by the Department of Labor if: The employee customarily and regularly performs at least one of the exempt duties or responsibilities of an exempt executive, administrative, or professional employee.”

Who is exempt from the new overtime rule?

The threshold change could make many previously exempt employees newly nonexempt. You likely know by now that exempt employees are not eligible for overtime. The new rule and more employees becoming nonexempt means one thing: more employees will be eligible for overtime pay. As a reminder, an employee is exempt if they meet all of the following:

How much money do you have to make to qualify for overtime?

Under the new overtime rules, if you have employees whose annual salary is less than $47,476, ($913 per week), those employees will be eligible for overtime pay. How does overtime work?

How is overtime calculated for a salaried employee?

Overtime is paid at 1½ times the regular rate (i.e. “time and a half”) for each hour over and above 44 hours per week. If the employee is salaried, as opposed to hourly, the overtime rate is calculated by dividing their weekly salary by 44 to arrive at their hourly rate of pay.

Should you be paying your salaried employees overtime?

Yes, many salaried employees are entitled to overtime pay under the protections of the Fair Labor Standards Act (FLSA). But the amount of money you make is only one part of the overtime equation. The Labor Department puts a greater emphasis on what kind of work you do.

Can employers refuse to pay their employees for overtime?

By law, no employer can knowingly accept the benefits of your overtime work without appropriately paying you for the overtime hours. Even if the employer has a rule against you working more than 40 hours, and you do so anyway, they still must pay you appropriate overtime compensation.

Do you owe your salaried employees overtime?

Although this may be true in some circumstances, it is not true in all of them. Instead, employers must pay salaried employees overtime unless the employees fall within a specified exemption under federal and state wage and hour laws.

Are salaried employees exempt from overtime pay?

One common misconception under the FLSA is that salaried employees are exempt from the overtime pay requirements simply because they are paid a salary rather than on an hourly basis. In many cases a salaried employee is an exempt employee under the FLSA.