New York Salaried Employees Are Entitled to Overtime Pay
Many people who are paid on a salary basis believe that they are not entitled to overtime pay. We get calls all the time from workers who assume that overtime pay is not an option since they are on a salary. Salaried employees, however, are presumed to be entitled to overtime pay.
A salaried employee must be paid overtime unless they meet the test for an exempt employee under the Fair Labor Standards Act. The Fair Labor Standards Act is probably one of the most confusing and poorly drafted laws on the books. However, over the years, the courts have courts have carved out certain exemptions. The exemptions exclude certain kinds of jobs from overtime pay. The broad idea is that certain higher level positions are not entitled to overtime pay. Here are the main exemptions:
1. Executive - a person who is employed as an executive is exempt from overtime pay. An executive is generally any person who manages the business or part of the business and who also manages two or more employees, has the power to hire and fire employees and who regularly exercises independent judgment.
2. Administrative - a person who is employed in a higher level administrative position is exempt from overtime pay. This is one of the more challenging exemptions as the definition is vague and tends to change over time. In any event, an administrator is someone who helps run the operation of a business such as an accountant or a human resources director. They have to help keep the business running and they also have to regularly exercise independent judgment and not operate under close supervision or engage in clearly defined tasks or work.
3. Professionals - highly educated types with fancy degrees are exempt from overtime pay. This includes doctors, lawyers, scientists, researchers and the like. They are not entitled to overtime pay.
4. Outside Sales - Salespeople who spend the majority of their time outside of the office visiting clients are exempt from overtime pay.
5. Union Employees - employees who are covered by a valid collective bargaining agreement are exempt from overtime pay.
These are the more common exemptions from overtime pay. Many people who are paid on a salary do not fall into any of the above exemptions and are therefore entitled to overtime pay. If you think that you are entitled to overtime pay, you should call an experienced employment law firm. We would be happy to help. We answer these kinds of questions for free as do many other firms.
