Being salaried does NOT automatically make you exempt from overtime. What matters is your job duties and whether your salary clears the threshold (currently $684/week federally — some states set higher bars). If you're non-exempt and salaried, overtime is calculated from your regular hourly rate: roughly your weekly salary divided by 40.
Salary ≠ exempt: the two tests
To be legally exempt from overtime, your employer must clear both:
- The salary threshold: currently $684/week (about $35,568/year) federally. Below that, you're non-exempt — full stop, regardless of title. Several states (California, New York, Washington, and others) set higher minimums.
- The duties test: your actual day-to-day work must fit an exempt category — executive, administrative, professional, computer, or outside sales. A fancy title with non-exempt duties doesn't count.
Misclassification is one of the most common wage violations in the country. 'Manager' on your badge while you spend 90% of your time on the register? That's the classic case.
How salaried overtime is calculated
If you're salaried and non-exempt, first find your regular hourly rate: weekly salary ÷ 40 is the standard shortcut.
Example: $800/week salary → $20/hour regular rate → overtime at $30/hour.
One wrinkle: the FLSA technically divides salary by total hours worked that week, which can push the hourly rate down in heavy weeks. And some employers use the 'fluctuating workweek' method, where salaried overtime pays only the half-time premium. If your paycheck math looks odd, that's the first place to look.
Tip: Track your actual hours even if you're salaried. If a misclassification claim ever arises, your own records are the evidence that matters.
Red flags you're misclassified
- You're called a manager but have no real authority to hire, fire, or direct others.
- Your salary is below $684/week (or your state's higher threshold).
- You do essentially the same work as hourly employees who get overtime.
- You were switched from hourly to salary and your hours 'mysteriously' grew.
If several of these fit, the Department of Labor's Wage and Hour Division takes complaints for free — and retaliation for filing is illegal.
Calculate what you're owed
Enter your salary and overtime hours — see the number.
Open the overtime calculator → Can they refuse to pay? →Quick answers
Do salaried employees get overtime?
Sometimes — it depends on exemption status, not the word 'salary.' Non-exempt salaried employees are entitled to overtime just like hourly workers.
What is the salary threshold for exempt employees?
Currently $684/week under federal law. States can and do set higher thresholds, so check your state's number.
What is the fluctuating workweek method?
A legal pay method where a salaried non-exempt employee's fixed salary covers all hours worked, so overtime hours earn only the extra half-time premium. It requires a clear mutual understanding and can't be imposed retroactively.
General information only, not legal advice. Exemption rules are fact-specific — check federal and your state's current thresholds.