Salaries

There is a common misconception that all employees who are paid a salary are not entitled to overtime. This is false. While certain salaried employees may be exempt from the overtime laws, simply paying an employee a salary does not cut it. To be exempt from the overtime laws, an employee must be a salary of at least $455 per week and also meet the relevant criteria in one of the following categories:
Executive Employees
Employees, such as senior level management, who are executives are exempt from the overtime laws if all of the following conditions are met:
  • The employee must manage the business or manage a distinct department or division of the business,
  • The employee must direct the work of at least two other full-time employees,
  • The employee must have the authority to hire and fire other workers or at least have his input taken seriously in matters of hiring and firing.
Administrative Employees
Employees who are administrators are exempt from the overtime laws if all of the following conditions are met:
  • The employee's work must primarily involve office work (ie no manual labor) and this office work must be related to the management or general business operations of the employer,
  • The employee's work must involve the use of discretion and independent judgment in significant matters.
Professional Employees
Employees, such as doctors or lawyers, who are professionals are exempt from the overtime laws if all of the following conditions are met:
  • The employee is primarily responsible for work requiring advanced knowledge,
  • The advanced knowledge required for the employee's work must be in a scientific field or other field of advanced learning,
  • The advanced knowledge must normally be acquired by a prolonged course of education and studies.
Remember - it is up to the employer to prove that a salaried employee falls into one of these categories and that all of the factors are met. If you don't perfectly fit into one of these exceptions, you are entitled to overtime for each hour beyond 40 that you work in a workweek, regardless of whether you're paid with a salary.