A construction foreman earning $90,000 a year still gets overtime. So does a nurse paid a flat weekly rate, or an office coordinator whose boss docks her pay for leaving early. The right to overtime turns on classification, not how your paycheck is structured. If you are salaried but non-exempt, federal law says you get at least time and a half for every hour past 40 in a workweek. The question is whether you are non-exempt, and the answer depends on three tests the Department of Labor sets, plus the state where you perform the work.
Salaried is not the same as exempt
"Salaried" describes a payment method: a fixed amount per pay period. "Exempt" describes a legal status: excluded from the overtime protections of the Fair Labor Standards Act. The two words are not synonyms, but employers routinely treat them that way. The FLSA has drawn a line between them since 1938. Crossing it costs workers wages they never recover because they assume a salary cancels overtime. It does not.
Your pay frequency, your title, and whether you receive direct deposit tell you nothing. Only the three-part exemption test answers the question.
The three tests every exempt classification must pass
To deny you overtime legally, your employer must prove you meet all three of these tests. Fail one, and you are owed overtime, full stop.
Salary basis test
You must receive a predetermined amount each pay period that cannot be reduced because of the quality or quantity of your work. If your employer cuts your pay when the office is slow, when you arrive late, or for a minor policy violation, you are probably not on a genuine salary basis. That alone can make you non-exempt, regardless of your earnings.
Permitted deductions are narrow: full-day absences for personal reasons, unpaid disciplinary suspensions for serious infractions, or the first and last weeks of employment. Nickel-and-dime deductions are a red flag.
Salary level test
The Department of Labor sets a weekly earnings floor. As of July 2024, the federal floor is $844 per week, which annualises to $43,888. Earn below that, and you are automatically non-exempt. No duties test applies. Your employer cannot classify you as exempt, cannot ask you to waive the right, and cannot use a managerial title to dodge the obligation.
A second increase to $1,128 per week ($58,656 per year) was scheduled for January 2025. That increase faced legal challenges. Check the current threshold with the Wage and Hour Division before relying on any figure. The number can shift, and an outdated assumption is expensive.
Duties test
What you actually do matters more than what your offer letter says. To be exempt, your primary duties must fall into one of these categories:
- Executive: You regularly direct the work of at least two other staff members and have genuine input on hiring, firing, or promotion decisions.
- Administrative: You perform office or non-manual work directly related to management policies or general business operations, and you exercise independent judgment on significant matters.
- Professional: Your work requires advanced knowledge in a field of science or learning, typically gained through prolonged specialised education.
- Computer-related: You work as a systems analyst, programmer, or software engineer (or similar role) and earn at least the hourly equivalent of the salary-level floor.
- Outside sales: You regularly work away from the employer's place of business, primarily making sales or taking orders.
The test looks at your primary duties. Spend 60 percent of your week doing the same tasks as hourly coworkers and 40 percent on genuine management work, and the analysis gets fact-intensive. Courts and the Department of Labor generally expect exempt staff to spend more than half their time on exempt duties, though outcomes vary by circuit.
Federal salary thresholds over time
The floor moves when the Department of Labor issues a new rule. Here are the recent federal weekly and annual figures, tied to their effective dates:
| Effective period | Weekly salary floor | Annualised equivalent |
|---|---|---|
| 2019 | $684 | $35,568 |
| January 2020 through June 2024 | $684 | $35,568 |
| July 2024 onward | $844 | $43,888 |
Some states set a higher floor. Where state law is more protective, the higher standard applies.
How overtime works when you are salaried and non-exempt
A salaried worker who is not exempt gets 1.5 times the standard rate for every hour worked beyond 40 in a workweek. Federal law has no daily overtime trigger. Work 10 hours Monday and 8 hours Tuesday through Friday: zero overtime. Work 9 hours Monday through Thursday and 8 hours Friday: four hours of overtime.
Your employer cannot avoid paying by calling you salaried, professional, or management. The classification, not the label, controls.
Calculating overtime: convert the salary to an hourly rate
Find the standard hourly rate by dividing the weekly salary by the number of hours the salary is meant to cover, usually 40.
An example at $20 an hour, which matches a $800 weekly salary for a 40-hour expectation:
40 hours: 40 straight-time hours ($800.00) plus 0 overtime hours at $30.00 ($0.00) equals $800.00. 45 hours: 40 straight-time hours ($800.00) plus 5 overtime hours at $30.00 ($150.00) equals $950.00. 50 hours: 40 straight-time hours ($800.00) plus 10 overtime hours at $30.00 ($300.00) equals $1,100.00. 60 hours: 40 straight-time hours ($800.00) plus 20 overtime hours at $30.00 ($600.00) equals $1,400.00.
The formula stays the same at any base rate. At $25 an hour, which matches a $1,000 weekly salary:
40 hours: 40 straight-time hours ($1,000.00) plus 0 overtime hours at $37.50 ($0.00) equals $1,000.00. 45 hours: 40 straight-time hours ($1,000.00) plus 5 overtime hours at $37.50 ($187.50) equals $1,187.50. 50 hours: 40 straight-time hours ($1,000.00) plus 10 overtime hours at $37.50 ($375.00) equals $1,375.00. 60 hours: 40 straight-time hours ($1,000.00) plus 20 overtime hours at $37.50 ($750.00) equals $1,750.00.
At $35 an hour, matching a $1,400 weekly salary:
40 hours: 40 straight-time hours ($1,400.00) plus 0 overtime hours at $52.50 ($0.00) equals $1,400.00. 45 hours: 40 straight-time hours ($1,400.00) plus 5 overtime hours at $52.50 ($262.50) equals $1,662.50. 50 hours: 40 straight-time hours ($1,400.00) plus 10 overtime hours at $52.50 ($525.00) equals $1,925.00. 60 hours: 40 straight-time hours ($1,400.00) plus 20 overtime hours at $52.50 ($1,050.00) equals $2,450.00.
The fluctuating workweek method: half-time, not time and a half
For salaried staff who are not exempt and whose hours genuinely swing up and down each week, a different calculation exists. The salary is treated as covering all hours worked, whether 30 or 50. The standard rate therefore changes week to week. Overtime is paid at half that rate, not 1.5 times.
At $25 an hour base, which corresponds to a $1,000 weekly salary, a 50-hour week under this method works like this: the standard rate becomes $20.00 ($1,000 divided by 50). Overtime is half that, $10.00 per hour, for 10 hours, adding $100.00. Total pay: $1,100.00.
The method is legal only when four conditions hold:
- Hours actually fluctuate, both up and down, from week to week.
- The salary is fixed and does not shrink when hours drop.
- The salary covers at least minimum wage for every hour worked.
- Employer and worker have a clear, mutual understanding that the salary covers all hours.
Courts have upheld the method, but it is frequently misapplied. A steady 50-hour schedule every week is not fluctuating. If your employer uses this method, check whether your hours really vary.
Highly compensated employees: a narrower exemption than it looks
A separate exemption exists for highly compensated workers. For 2024, the total annual compensation threshold sits at $132,964, a figure set by the Department of Labor. To use this exemption, an employer must show all of the following:
- Total annual compensation meets or exceeds that 2024 threshold, including base salary plus bonuses and commissions.
- At least $844 per week is paid on a salary basis.
- Primary duties include office or non-manual work related to the business.
- The worker customarily and regularly performs at least one exempt duty of an executive, administrative, or professional nature.
This exemption does not cover someone who spends all day on non-exempt tasks. A highly paid worker who does no exempt duties remains entitled to overtime.
Blue-collar workers are always owed overtime
Manual labourers, skilled tradespeople, and first responders are always non-exempt under federal law. Salary size does not matter. Title does not matter. The FLSA exemptions do not reach them.
This covers construction workers, electricians, plumbers, mechanics, police officers, firefighters, paramedics, EMTs, production workers, plant operators, maintenance staff, and anyone who performs work involving repetitive physical operations.
A highly paid electrician earning above the highly compensated figure still gets overtime. The only path to exempt status for these workers is a genuine supervisory role where more than half the time is spent on exempt duties, including real authority over hiring, firing, and job assignments. Overseeing a crew without that authority is not enough.
State rules that override the federal baseline
Federal law is the floor. Several states have built a higher ceiling.
California adds daily overtime: 1.5 times the standard rate after 8 hours in a day, double time after 12 hours. A seventh consecutive day worked triggers 1.5 times for the first 8 hours and double time thereafter. Alternative workweek schedules, like four 10-hour days, are permitted only after an employee vote.
Alaska requires 1.5 times after 8 hours in a day and after 40 hours in a week.
Nevada requires daily overtime after 8 hours for staff earning below a threshold tied to the minimum wage; the 2024 ballot included a measure affecting daily overtime for certain personnel. Check the current Nevada Labor Commissioner guidance for the applicable wage band and status.
Colorado mandates 1.5 times after 12 hours in a day and after 40 hours in a week.
Oregon requires 1.5 times after 40 hours in a week. Manufacturing establishments also owe daily overtime after 10 hours.
New York requires 1.5 times after 40 hours in a week. Hospitality employees may also qualify for "spread of hours" pay, an extra hour at the minimum wage when the workday spans more than 10 hours.
Where you physically perform the work generally determines which state law applies, even if your employer is based elsewhere.
What to do when the numbers do not add up
If you earn below the federal salary floor, you are non-exempt. If your duties do not fit the exemption categories, you are non-exempt. If you are a blue-collar worker, you are non-exempt. In all three cases, overtime is a legal obligation, not a favour.
Check your pay. The statute of limitations for FLSA claims is two years, or three years for wilful violations. Every week you wait is a week you may not recover.