Counterintuitive? Salary Plus Overtime Pay?
As a general rule, all employees are required to receive overtime pay at a rate of one and one-half their regular rate of pay for hours worked over 40 in a week. I get a lot of inquires from employees who think that they are not entitled to overtime because “my employer pays me a salary or a flat rate”. Payment of wages on a salary basis does not determine whether you are entitled to overtime pay. An employer must properly classify you as “exempt” in order to avoid paying you overtime, even if your employer is paying you a salary.
The main exemptions from overtime are employees who are managers, directing the work of two or more employees with the power to hire and fire employees. Keep in mind that your job “title” is not important, what’s important is your primary job “duty.” In other words, your employer cannot call you a manager, even though your primary duties are not related to managerial tasks. An employee in this situation would be entitled to time and a half for overtime pay if there primary duty is not managing.
The natural follow up inquiry is, “my employer didn’t keep track of my hours, because I was paid salary, so how do I know how many overtime hours I worked?” Well that is a very common scenario, and in that scenario the employee makes a good-faith estimate of the hours worked per week.
Keep in mind that there are several exemptions from overtime and you should consult with an attorney to decipher whether you are entitled to overtime pay.
Call Herrmann Law, PLLC to discuss: 817-479-9229.
*This article is not legal advice. The information contained in this article is informational and you should not rely on it instead of legal advice specific to your situation. Drew N. Herrmann is licensed to practice law in Texas. The law in your state may be different than what is discussed in this article. Further, the state law in your state may change the analysis or outcome of the facts or law described in this article.
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