Overtime Exemption – More Than Just A Salary Level

By now, many people have heard that the new overtime rule has been halted. The new overtime rule was set to increase the yearly salary threshold from $23,660 to $47,476. In other words, if you do not make at least $47,476 under the new law you would have been entitled to overtime pay. However, the new overtime law was halted and thus, the old $23,660 salary threshold still applies.

The proposed change and subsequent halt in the change of the law has brought another aspect of the law to light. The salary threshold is only one of several requirements that must be met in order for an employee to be exempt form overtime (i.e. not entitled to overtime). In other words, an employee may make more than the $23,660 salary threshold, but not meet the “duties test” and therefore the employee would still be entitled to overtime. Many employees mistakenly believe that they are “exempt” because their employer told them they were.

Admittedly, whether an employee meets the duties test is highly fact specific and not nearly as clear as a salary cut-off. However, just because you make more than the current salary threshold of $23,660 does not mean that you are exempt from overtime.

If you have questions about your overtime exempt status, or if you have general questions about your wages, please call us to setup a consultation 817-479-9229 or visit our website. (www.paycheckcollector.com)