Wednesday, January 27, 2010

Quiz: Are Salaried Employees Entitled to Overtime?

Yes, salaried employees are often entitled to overtime! People frequently assume that overtime pay is only for hourly employees, but this is wrong. Being paid a salary is not a factor – what matters most is the kind of work you do.

A salaried employee, like an hourly employee, must be paid overtime unless he or she meets the test for exempt status as defined by federal laws. So – the easy answer to this common question is that being paid a salary is not a factor. Do not assume that you are not entitled to overtime pay just because you are paid a salary--you may be entitled to overtime pay.