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Do Salaried Employees Get Overtime?

Last updated: June 2026

The short answer: it depends on how much you earn and what your job duties are. Being paid a salary does not automatically exempt you from overtime. Millions of salaried workers in the U.S. are legally entitled to overtime pay — many just don't know it.

The Fair Labor Standards Act (FLSA) sets the rules, and they hinge on two tests: a salary threshold and a duties test. Here's how they work.

The FLSA Salary Threshold

As of 2024, the FLSA white-collar exemption salary threshold is:

• $684 per week
• $35,568 per year

Any salaried employee earning less than $684/week is non-exempt and must receive overtime pay (1.5× their regular rate) for all hours worked over 40 in a workweek — regardless of their job title or duties. Calling someone a "manager" on paper doesn't override this rule.

Employees earning at or above $684/week may be exempt — but only if they also pass the relevant duties test (see below).

Exempt vs. Non-Exempt: What It Means

Non-exempt employees must receive overtime (at least 1.5× their regular rate) for all hours over 40 per workweek. This applies to both hourly and salaried workers who don't meet exemption criteria.

Exempt employees are not entitled to overtime pay under the FLSA. Exemption is not a benefit to the employee — it's a legal classification that removes their right to overtime. To be properly classified as exempt, an employee must meet all of the following:

1. Be paid on a salary basis (not docked for partial-day absences)
2. Earn at least $684/week
3. Pass the applicable duties test

The Duties Test: Three Main Exemptions

Meeting the salary threshold alone isn't enough. The employee must also satisfy one of these duties tests:

1. Executive Exemption

• Primary duty is managing a department or the enterprise
• Regularly directs the work of at least two full-time employees
• Has genuine authority to hire, fire, or promote (or whose recommendations carry significant weight)

2. Administrative Exemption

• Primary duty is office or non-manual work directly related to management or general business operations
• Must include the exercise of discretion and independent judgment on matters of significance
• This is the most litigated exemption — job titles like "coordinator" or "analyst" do not automatically qualify

3. Professional Exemption (Learned or Creative)

• Learned professional: Primary duty requires advanced knowledge in a field of science or learning (law, medicine, accounting, engineering) — typically requiring a college degree or equivalent training
• Creative professional: Primary duty requires invention, imagination, or originality in a recognized artistic field

Highly Compensated Employee (HCE) Exemption

Employees earning $107,432 or more per year (with at least $684/week paid as a guaranteed salary) qualify for the HCE exemption if they perform at least one duty of an executive, administrative, or professional employee. This is a lighter duties test — simply performing one qualifying duty is enough.

State Laws That Are Stricter Than Federal

Several states set higher overtime exemption thresholds than the FLSA, meaning their workers get more protection. When state law is more favorable to employees, state law applies:

• California: $66,560/year for exemption (2024) — more than 1.8× the federal threshold
• New York: Varies by employer size and location — up to approximately $64,350/year in NYC/Long Island
• Washington: $67,724/year in 2024
• Colorado: $42,058.40/year in 2024
• Alaska: No salary threshold — exempt employees only if they manage 2+ people

Always check your state's Department of Labor website for the current year's thresholds.

What to Do If You Think You're Misclassified

Misclassification is a real problem. The DOL estimates millions of workers are incorrectly classified as exempt. If you suspect misclassification:

1. Document your actual duties — title doesn't control, actual job duties do
2. Check your salary — are you earning under $684/week? If so, you're non-exempt regardless of title
3. File a complaint with the DOL Wage and Hour Division — investigations are free and your employer cannot legally retaliate
4. Consult an employment attorney — many work on contingency for wage theft cases
5. Know the statute of limitations — 2 years for regular violations, 3 years for willful violations

Workers who successfully claim misclassification can recover back pay (unpaid overtime wages) plus an equal amount in liquidated damages, meaning the employer can owe double. Use our Time-and-a-Half Calculator to estimate what you may be owed.

Key Facts at a Glance

• FLSA salary threshold (2024): $684/week or $35,568/year
• Below this threshold: overtime required regardless of salary or title
• Above threshold: must also pass an executive, administrative, or professional duties test
• Highly compensated employee threshold: $107,432/year
• Several states (CA, WA, NY, CO) set higher thresholds than federal law
• California's 2024 exempt salary minimum: $66,560/year
• FLSA back pay statute of limitations: 2 years (3 for willful violations)

Frequently Asked Questions