Salaries and Overtime

I see this question frequently. Let me start by saying that if the Fair Labor Standards Act (“FLSA”) requires that you be paid overtime, your employer cannot escape that obligation by simply paying you a salary. Many employers believe that, however, because the FLSA does exempt certain salaried employee from the overtime requirements.

The vast majority of jobs in the United States are non-exempt, meaning that the employer must pay overtime for hours worked in excess of 40 per week.

The law does, however, creates several exemptions. Those include bona fide executive, administrative, professional and outside sales employees. These are exempt employees, and they are not entitled to overtime pay.

Speaking broadly, to become an exempt employee, the person must:

Being paid on a salary basis means an employee regularly receives a predetermined amount of compensation each pay period on a weekly, or less frequent, basis. The predetermined amount cannot be reduced because of variations in the quality or quantity of the employee’s work.

It is not possible to set out every scenario that determines whether an employee is exempt or non-exempt. But, it is important to note that something more than just a salary is necessary to create exempt status.

If you have a question about overtime pay, please give us a call.

Panter Law Firm, PLLC, 7736 Old Canton Road, Suite B, Madison, MS 39110.

601-607-3156.

www.craigpanterlaw.com

Craig Painter

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