Myth 3: Salaried Employees Cannot Earn 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 3: Salaried Employees Cannot Earn Overtime Pay
Reality:
Contrary to what many employers believe, how an employee is paid does not automatically exempt that person from the right to overtime pay. So, a salaried employee may still be eligible for overtime pay.
The differences between a salaried and an exempt employee often causes confusion. Managers will sometimes use these terms interchangeably, which causes confusion. Employers have the option of paying non-exempt employees on a salary basis. However, if an employee receives a salary, they are not automatically exempt from overtime pay.
Therefore, employees must meet very specific criteria to be classified as exempt. Exemption status is determined by a worker’s job duties, but it is not impacted by the way they are paid or their professional title. These exemptions are narrowly defined and are based on an established set of criteria relating to the employee’s salary and duties.
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.
