You’re Salaried, Does That Mean You Are Not Entitled to Overtime? Maybe

The distinction between salaried and hourly employees is based on the type of work done and status as exempt or not exempt from overtime. In general, if except an employee’s salary is at least $100,000 annually, salaried employees may be eligible for overtime if their average weekly pay is less than the minimum set by the NY Department of Labor (for NYC in 2017 $787.50/week, 2018 $900.00/week and 2019 $1,012.50/week). If the salaried employee’s pay is under the minimum, they must be paid 1 1/2 times their hourly calculated rate, for any hours worked over 40 in a week.

In addition, employees designated as salaried must meet all the requirements to be exempt from overtime.  That means:

• Paying them at least a high enough amount annually (see above), and
• Making sure their job description fits the other definitions for being exempt.

There are two exemptions that typically apply to your situation (the others are professional, outside sales and computer employees):

Executive Employee

Even though your job title was “manager, ” if your duties do not meet certain requirements, you could be subject to minimum wage and overtime rules:

• Does your job mostly consist of managing the company or a department?
• Do you supervise at least two full-time employees?
• Can you hire or fire workers, or, at least, contribute to the decision to do so?

If your answer is “no” to any one of these questions, under the executive exemption, you are required to be paid the minimum wage and overtime.

Administrative Employee

Ask yourself these two questions which determine whether you are properly classified as an administrative employee:

• Do you primarily perform office work that directly relates to the business operations of your employer or its customers?
• Do you use judgment (independent discretion) when making decisions about important matters?

If you do not do either of these things, you can have rights as a non-exempt employee.