Don’t Let the ‘Salary’ Myth Fool You—Know Your Rights!

Just because you’re on a salary doesn’t mean you’re automatically exempt from wage and hour laws, including your right to overtime pay. Far too many workers have been led to believe that getting a salary means you’re not entitled to extra compensation when you work those long, hard hours. But don’t let anyone pull the wool over your eyes—this isn’t always true. Let’s break it down.

Salary vs. Exempt Status—The Real Deal

Getting a salary is just one piece of the puzzle when it comes to figuring out whether you’re exempt from overtime pay. The U.S. Department of Labor (DOL) has laid down the law with specific criteria that must be met to classify someone as exempt. Spoiler alert: It’s not as simple as just receiving a paycheck every two weeks.

Salary Basis Test—It’s Not All About the Money

Sure, to be considered exempt, you generally need to be pulling in a salary of at least $684 a week. But guess what? Just meeting this threshold doesn’t mean you’re off the hook for overtime pay. There’s more to the story.

Duties Test—Your Job Description Matters

On top of that salary requirement, you also have to be doing a specific type of work to be truly exempt. We’re talking about roles that fall into categories like executive, administrative, or professional. So, just because your job title sounds fancy doesn’t mean you’re automatically exempt.

Salaried but Non-Exempt—Yes, It’s a Thing

Here’s where it gets interesting: You can be earning a salary and still be classified as non-exempt. That means you’re entitled to overtime pay for every hour you grind out over 40 in a workweek. Don’t let anyone tell you otherwise!

Overtime Calculation for Salaried Non-Exempt Workers

For you salaried, non-exempt warriors out there, overtime is your right. It’s calculated by turning your salary into an hourly rate and then applying the time-and-a-half rule for those extra hours you put in. Simple as that.

Common Misconceptions—Don’t Get Duped

Let’s set the record straight: Just because your boss is cutting you a salary check doesn’t automatically make you exempt. This kind of misunderstanding leads to employers breaking wage and hour laws—don’t let it happen to you.

Why Proper Classification Matters—Watch Out, Employers

Employers, listen up: Misclassifying your workers as exempt when they don’t meet all the criteria can land you in serious legal and financial hot water. It’s not worth the risk.

What’s New—Changes Are Coming

Heads up—rules about exempt status aren’t set in stone. As of April 2024, the DOL has raised the bar. The new minimum salary for exempt status will jump to $844 a week ($43,888 annually) on July 1, 2024, and then again to $1,128 a week ($58,656 annually) on January 1, 2025. Stay informed, so you don’t get left behind.

Bottom Line—Know Your Rights

Being on a salary doesn’t automatically strip you of your right to overtime pay. Both employers and employees need to be crystal clear about the specific criteria for exempt status, including that salary threshold and the duties test. When in doubt, don’t hesitate to reach out to HR pros or legal experts to make sure you’re on the right side of the law.

Stay informed, stay empowered, and make sure you’re getting what you’ve earned!

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