Do Salaried Employees Get Overtime? What the Law Actually Says

"You're salaried now, so there's no overtime." It's one of the most common things employees are told, and one of the most commonly wrong. Whether you get overtime has almost nothing to do with whether you're paid a salary or an hourly wage. It depends on a legal classification called exempt vs. non-exempt, and plenty of salaried workers fall on the side that's owed overtime.

The Short Answer

Yes, many salaried employees are entitled to overtime. Under the federal Fair Labor Standards Act (FLSA), a salary by itself does not make anyone exempt. To legally withhold overtime, an employer must show the employee meets all three exemption tests. Miss even one, and that salaried employee is non-exempt and owed 1.5× their regular rate for every hour over 40 in a workweek.

Exempt vs. Non-Exempt: The Only Distinction That Matters

The FLSA sorts every covered employee into one of two buckets:

• Non-exempt: Entitled to minimum wage and overtime. Can be hourly or salaried.
• Exempt: Not entitled to overtime, because the job meets specific salary and duties requirements.

Notice that "salaried" appears on both sides. A salaried marketing coordinator may be non-exempt and owed overtime, while a salaried operations director is exempt and isn't. The paycheck format didn't decide it, the classification did.

The Three Tests for Exemption

To be exempt under the most common "white-collar" exemptions, an employee must pass all three of the following. Failing any one makes them non-exempt:

1. Salary basis test: Paid a fixed, predetermined salary that isn't reduced based on the quality or quantity of work.
2. Salary level test: Paid at least the federal minimum threshold (see below).
3. Duties test: Primary job duties fit an exempt category (executive, administrative, professional, outside sales, or computer employee).

The Salary Level Test

The federal salary threshold is $684 per week, or $35,568 per year. An employee paid less than this is non-exempt and owed overtime regardless of their job title or duties.

This number has a turbulent recent history: a 2024 Department of Labor rule that would have raised the threshold (to $844, then $1,128 per week) was struck down by a federal court in late 2024, reverting the figure to $684. Because thresholds like this are periodically challenged and revised, always verify the current Department of Labor figure before relying on it, and check your state, which may set a higher floor.

The Duties Test

Clearing the salary bar isn't enough; the employee's primary duties must genuinely fit an exempt category. The major ones:

Exemption	Core requirement (simplified)
Executive	Manages the business or a department; directs at least two full-time employees; has hiring/firing influence.
Administrative	Office work directly related to management/operations; exercises independent judgment on significant matters.
Professional	Work requiring advanced knowledge in a field of science or learning, usually from prolonged education.
Outside sales	Makes sales away from the employer's place of business.
Computer	Systems analysis, programming, or software engineering meeting specific criteria.

A "manager" who mostly does the same work as the people they nominally oversee often fails the executive duties test, a frequent and expensive mistake.

Calculating Overtime for a Salaried Worker

When a salaried employee is non-exempt, overtime is straightforward once you convert the salary to an hourly regular rate.

Example: A non-exempt employee earns a $48,000 salary intended to cover a 40-hour week, and works 46 hours.

• Weekly salary: $48,000 ÷ 52 = $923.08
• Regular rate: $923.08 ÷ 40 = $23.08/hour
• Overtime rate: $23.08 × 1.5 = $34.62
• Overtime pay: 6 hours × $34.62 = $207.69
• Total for the week: $923.08 + $207.69 = $1,130.77

For the full method, including multiple pay rates and bonuses, see our guide on how to calculate overtime pay.

Why the Myth Persists

If the law is this clear, why does almost everyone believe salaried workers can't earn overtime? A few reasons reinforce the misunderstanding:

• It's often true at the top. Senior salaried roles usually are exempt, so people generalize from the executives they see and assume it applies to every salaried job.
• "Salaried" sounds like a status upgrade. Moving from hourly to salary is framed as a promotion, and losing overtime feels like part of the deal, even when it isn't legally the case.
• Employers benefit from the confusion. Treating a borderline role as exempt saves money, and employees rarely challenge it because they assume the rule is settled.
• The threshold keeps changing. With the salary level repeatedly proposed, raised, and rolled back, even well-meaning managers lose track of the current figure.

The result is a widely shared belief that simply isn't how the FLSA works. The format of your paycheck has never been the deciding factor, your classification is.

Common Misclassifications

Misclassifying non-exempt employees as exempt is one of the FLSA's most litigated issues. The usual traps:

• Title inflation: Calling someone a "manager" or "coordinator" without the duties to match.
• Treating salary as a shield: Assuming any salaried worker is automatically exempt.
• Ignoring the salary floor: Paying a salary below $684/week and skipping overtime.
• Improper deductions: Docking an exempt employee's pay for partial-day absences, which can destroy the exemption.

Unsure whether a role is exempt? See our breakdown of salary vs. hourly classification, and when in doubt, get an employment-law opinion, it's far cheaper than back-pay liability.

State Rules Can Be Stricter

Federal law is the floor, not the ceiling. Several states raise the bar in ways that pull more salaried workers into overtime eligibility:

State	Stricter rule (verify current figures)
California	Higher salary threshold tied to minimum wage; daily overtime over 8 hours, double time over 12.
New York	Salary thresholds above the federal level, varying by region.
Washington	Salary threshold set as a multiple of minimum wage, phased upward.
Alaska	Daily overtime over 8 hours in a workday.

When state and federal rules differ, the employer must apply whichever is more favorable to the employee. State thresholds change frequently, so confirm the current figure for your state.

What to Do If You Think You're Misclassified

If you're salaried, working well over 40 hours, and getting no overtime, it's worth checking whether you're properly classified. A practical sequence:

1. Compare your salary to the threshold. If you earn less than $684/week ($35,568/year), you're almost certainly non-exempt and owed overtime, verify the current figure first.
2. Look honestly at your duties. Do you genuinely manage people, exercise independent judgment on significant matters, or perform advanced professional work? Or do you mostly do the same tasks as hourly coworkers? Title isn't what counts.
3. Track your hours. Keep your own record of start times, end times, and work performed outside scheduled hours, including email and after-hours tasks.
4. Run the numbers. Use the overtime calculator to estimate what you'd be owed if non-exempt, it makes the stakes concrete.
5. Raise it or get advice. Many issues are honest mistakes an employer will correct once flagged. For larger or contested amounts, the U.S. Department of Labor's Wage and Hour Division and employment attorneys can help, and the FLSA prohibits retaliation for asserting these rights.

Frequently Asked Questions