Many employers incorrectly assume that if an employee is salaried (paid a flat amount rather than an hourly wage and not subject to partial-day or partial-week deductions), that employee is exempt from overtime. Unfortunately, and perhaps not surprisingly, this is not always the case.
Generally speaking, being paid on a “salary basis” is a prerequisite for exemption from overtime, but a salary alone does not mean an employee is automatically exempt from overtime. In addition to receiving a salary, the employee must also fall within one of several exemptions based on their “primary” job duty. A few common exemptions involve the “white collar exemptions” from overtime, including executive, administrative, learned professional, creative professional, outside salesperson, and computer professional exemptions.Details