Does paying overtime to a salaried exempt employee convert that employee to a non-exempt status?

Posted 10-06-2010

Ann Kiernan replies:

No. Many companies pay something extra to exempt employees who work weekends, nights, or have “on-call” responsibilities, in recognition of the extra burden the schedule imposes. What would convert that employee to non-exempt would be to dock her salary because she worked fewer than 40 hours per week. You may want to consult the federal Labor Department’s Wage and Hour Division’s fact sheet on salary and overtime exemptions for more information.


Information here is correct at the time it is posted. Case decisions cited here may be reversed. Please do not rely on this information without consulting an attorney first.


About the Author:

Ann Kiernan has litigated claims of wrongful discharge and discrimination before state and federal courts and administrative matters before the New Jersey Division on Civil Rights, the National Labor Relations Board and the Equal Opportunity Employment Commission, representing both employers and employees. Ms. Kiernan co-hosted The Employee Rights Forum, a weekly radio call-in show reaching up to a half-million listeners in the New York metropolitan area, and her articles on employment law have been published in many books and magazines. Both as a firm partner and as a director, Ms. Kiernan gained solid experience in management and human resources compliance. She has worked with Fair Measures since 1997.