Do Salaried Employees Get Paid Overtime

Most people know that hourly workers get overtime, but do salaried employees get paid overtime as well? Because a salaried employee's pay is set per a fixed number of hours, it may seem that the fixed salary should cover any extra hours. However, salaried employees are entitled to getting additional pay for additional hours.

The Definition Of Overtime
When an employee works more hours than what is agreed upon by the employer and employee, it is called overtime. Federal and state laws make employers compensate employees for working hours that are outside of normal. The Fair Labor Standards Act, or FLSA, has determined that 40 hours per week is the set standard work week. Any time logged in on a job per week that exceeds 40 hours is considered overtime.

Hours Worked Per Week
An employee's salary is set on a fixed number of hours of expected work per week, usually 40. When an employer expects that employee to work more than the predetermined number of hours in a week, that salaried employee is eligible for overtime pay.

Overtime Rate
The employer must figure the hours of overtime as 1 ½ times the regular pay as it breaks down to an hourly rate. For example, if an employee works 40 hours per week with a weekly salary of $1,000, that would break down to $25 per hour. The employer would have to pay $37.5 per hour for any hours that exceed 40 per week.

Exemptions to Overtime
There are certain exemptions as to when salaried employees receive overtime. An exemption can occur for certain executive employees. First, the employee must be receiving a salary and it must be no less than $455 per month. Her job duties must also be proven to be those of an executive. There are other conditions that apply to computer and outside sales employees as well. If both of these requirements are met, the employer does not need to pay overtime. When the primary job duties go hand in hand with major business operations, the employee may be considered exempt.

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