Being paid a salary does not by itself make you exempt from overtime. This is one of the most widespread and costly misunderstandings in the American workplace. Whether you are owed overtime depends on your actual job duties and your pay level under tests set by the Fair Labor Standards Act and state law. Many employees who are told they are salaried, and therefore not entitled to overtime, are in fact misclassified and owed significant back pay.
The two tests that actually decide exemption
To be exempt from overtime, an employee generally must satisfy both a salary-level test and a duties test. The salary-level test requires that the employee be paid at least a threshold amount set by regulation. The duties test requires that the employee's primary job duties fall within a recognized exemption, most commonly the executive, administrative, or professional exemptions.
A job title does not control the analysis. Calling someone a manager does not make them exempt if their real day to day work is the same as the non-exempt employees they supposedly supervise. The law looks at what you actually do, not what your business card says.
Common ways employers get it wrong
Misclassification takes a few recurring forms. Employers label workers as salaried managers while their duties are primarily routine. They classify workers as independent contractors when they control the work like employees. They require work before clocking in or after clocking out. They average hours across weeks to avoid paying overtime in a single week, which the law does not allow for non-exempt employees.
What you can recover
If you were misclassified, you may be able to recover unpaid overtime, and in many cases an equal amount in liquidated damages, plus attorney fees. The amount depends on how many hours you worked, how long the misclassification lasted, and the applicable law. Wage claims carry deadlines, so reviewing your situation promptly with an employment lawyer helps protect what you are owed.
Questions addressed
Does being paid a salary mean I am not owed overtime?
No. A salary alone does not remove your right to overtime. Whether you are exempt depends on your actual job duties and whether you meet a specific legal exemption. Many salaried workers are misclassified and are owed unpaid overtime.
How far back can I recover unpaid overtime?
Federal law generally allows recovery of unpaid overtime for two years, or three years if the violation was willful. State law can allow a longer period. Because the window is limited, it is best to act promptly.
Can my employer retaliate against me for asking about overtime?
No. The law protects you from retaliation for asserting your right to be paid correctly. If you are punished for raising a wage concern, that is a separate violation you can pursue.
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