Myth 2: White-Collar or Management Jobs Are Always Exempt from Overtime Pay
Welcome back to the newest post in the blog series: 11 Employee Overtime Myths. To help you navigate employee overtime classification, we broke one of our most popular whitepapers down into an easily digestible series. The regulatory environment of employee overtime is very complicated, and often confusing. The content from this series comes from the ComplianceHR whitepaper Overtime Myths.
Overtime Myth 2: White-Collar or Management Jobs Are Always Exempt from Overtime Pay
Reality:
Most people associate overtime pay with unskilled hourly labor. An example of unskilled hourly labor is working as a clerk in the retail or the food service industries. While it is true that these types of roles are eligible for overtime pay, it is also possible for white-collar or management positions to be non-exempt.
Previously, in myth one, we discussed that in order to classify a worker as an exempt employee, they must meet the federal (FLSA) and any state requirements. Therefore, even if an employee is promoted to a management or leadership position, they may still be entitled to earn overtime pay. Titles such as “manager” or “supervisor” don’t necessarily confer overtime-exempt status.
How can I read the rest of the 11 Employee Overtime Myths?
Sign up to receive the email alert when a new employee overtime myth is published. Alternatively, you can check back in to the Resources section of our website weekly, or download the Overtime Myths whitepaper.
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Disclaimer
This blog and the associated whitepaper are should serve as a starting point for educating Human Resources and Legal professionals on certain aspects of legal obligations of employers. It is not a comprehensive resource or a complete explanation of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ComplianceHR is not rendering legal or tax advice, or other professional services. The contents are for general informational purposes only. We urge you to consult your attorney concerning any particular situation and any specific legal questions you may have.
