Salaried Employees and Overtime Pay

Understanding your rights as an employee is crucial. By knowing what you are entitled to, you can assert your rights effectively and prevent exploitation. Understanding your legal rights enables you to take proactive steps to address any issues or disputes that may arise. Among the many rights you need to understand are your rights to overtime pay. In Ohio, one common question is whether salaried employees are entitled to overtime pay. As a salaried employee, it is vital that you understand your rights regarding overtime pay. While many assume that being paid a salary instead of an hourly wage automatically means an employee is exempt from overtime pay, this is not always the case. In Ohio, a salaried employee may be entitled to overtime pay. Read on to learn more.

Exempt vs. Non-Exempt Status

Under labor laws, employees are classified as exempt or non-exempt. Only non-exempt employees are entitled to overtime pay for hours worked beyond 40 in a workweek. According to the law, overtime pay must be at least one and a half times the employee’s regular rate of pay for all hours worked beyond 40 in a week.

There is a common misconception that all salaried employees (employees who receive a predetermined fixed amount of compensation regularly) are exempt from overtime pay. This is not true. While most exempt employees are salaried, some salaried employees are not considered exempt employees, thus meaning they are eligible to receive overtime pay for hours worked over 40 in a workweek.

Overtime Laws for Salaried Employees

In Ohio, for a salaried employee to be considered exempt from overtime pay, they must meet a specific salary threshold. On July 1, 2024, the Department of Labor updated the standard salary level. The Department raised the salary level from $684 to $844 per week, which equals $43,888 annually. This means a salaried employee must earn at least $844/week or 43,888/year to be considered exempt from overtime pay. If you are a salaried employee making less than that, you are entitled to time and a half for all hours worked over 40 in a workweek.

Even if a salaried employee earns at least the stipulated amount, they must also perform exempt job duties as defined by the FLSA for them to be exempted from overtime pay. The main exemptions under the FLSA are executive, administrative, professional, and outside sales tasks. The FLSA outlines the specific duties associated with each exemption. For example, for an employee to be eligible for the administrative exemption, their main work must entail office or non-manual tasks directly linked to managing or overseeing the general business operations of the employer or their clients. Their work must also involve exercising discretion and making independent decisions.

Misclassification of Employees

Some employers intentionally misclassify non-exempt salaried employees as exempt to avoid paying overtime. It is vital to seek clarification about your classification. You may have an overtime claim if you are misclassified as an exempt employee. An experienced wage-and-hour attorney can help you with your claim.

Legal Help Is Available

If an employer has violated your right to overtime pay as a salaried or non-salaried employee, contact our experienced Columbus wage & hour attorneys at the law firm of Brian G. Miller, CO., L.P.A. for legal help.

Source:

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