Enterprise Software

Are salaried employees entitled to overtime pay?

It's a common assumption that salaries workers can be asked to work overtime without being compensated extra. That assumption is not always true.

It's a common assumption that salaries workers can be asked to work overtime without being compensated extra. That assumption is not always true.

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It's not whether you're salaried but whether you meet the test for exempt status as defined by federal and state laws. An employee that is exempt from the Fair Labor Standards Act is not entitled to overtime.  An employee that is non-exempt from FLSA is entitled to overtime. The official stance is:

A salaried employee must be paid overtime unless they meet the test for exempt status as defined by federal and state laws, or unless they are specifically exempted from overtime by the provisions of one of the Industrial Welfare Commission Wage Orders regulating wages, hours and working conditions.

If you are salaried and are non-exempt, then you can calculate your overtime pay like this:

  1. Multiply the monthly remuneration by 12 (months) to get the annual salary.
  2. Divide the annual salary by 52 (weeks) to get the weekly salary.
  3. Divide the weekly salary by the number of legal maximum regular hours (40) to get the regular hourly rate.

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Toni Bowers is Managing Editor of TechRepublic and is the award-winning blogger of the Career Management blog. She has edited newsletters, books, and web sites pertaining to software, IT career, and IT management issues.

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