When Salaried Workers Are Nonexempt Employees

Many employers consider their salaried employees to be exempt from the Fair Labor Standards Act requirement to pay overtime for hours worked in excess of 40 in a week. However, not all salaried positions are exempt from the overtime requirement.

At Key Harrington Barnes PC, our attorneys represent employers in class action lawsuits concerning nonpayment of overtime and other violations of wage and hour laws. However, we would rather help your company avoid litigation by classifying your employees correctly as exempt or nonexempt. Based in Dallas, we advise employers throughout Texas.

When Do I Have To Pay Salaried Workers Overtime?

To be considered exempt from the overtime requirement, salaried workers must be paid at least $23,600 a year and perform exempt job duties. The salary is a guaranteed minimum amount that is paid in a fixed amount each pay period. While you can pay the employee more than the guaranteed minimum amount but not less. The worker's salary cannot be docked for:

  • The quality or quantity of work performed
  • Partial day absences
  • Sick time (although it is permissible to charge absences to leave accruals)
  • Times when the employee performs no work (such as a plant closing or slow period)

Employers can dock exempt employees' pay for disciplinary suspensions, personal leave and absences covered by a sick leave plan.

The cost of mistakes when classifying salaried positions can be extremely high. Affected employees could file a class action lawsuit for nonpayment of overtime against your company. The cost of seeking timely legal advice is small compared to the cost of litigation.

For Help In Classifying Salaried Workers

To avoid costly civil penalties and litigation, call our Dallas lawyers at 214-615-7925 or send us an email using our contact form.