Many overtime wage claims are initiated by hourly workers. They have unpredictable incomes and are uniquely vulnerable to the misconduct of their employers. Businesses often try to manipulate hourly workers out of the overtime pay they deserve. They might alter their timeclock records, convince them to clock out before finishing certain job tasks or impose a no-overtime rule after the workers put in the hours. Hourly workers are often unsure of their rights and nervous about asserting themselves.
However, overtime pay rules do not just apply to hourly workers. There are also certain scenarios in which salaried employees are eligible for overtime pay as well. Workers paid on a salary basis can also end up denied the overtime wages they deserve.
While employers may sometimes try to claim that all salaried workers are exempt, the truth is that many workers paid on a salary basis might actually be eligible for overtime pay if they put in more than 40 hours in any given work week.
Low salaries do not exempt workers from overtime rules
Paying workers on a salary basis only leads to overtime exemption when the wages meet a certain federal standard. Companies could easily abuse the classification of salaried employees without such regulations.
There has long been a minimum salary requirement for exempt employees, and that minimum amount recently increased. The previous threshold was $35,568. As of mid-2024, workers should make at least $43,888 to be exempt from overtime pay rules. Beginning January 1st, 2025, the exempt minimum salary increases to $58,656.
Companies often try to avoid disclosing that rule to workers in the hopes that they can convince them to perform overtime work without adequate compensation. Employees who know their rights can either push back on inappropriate scheduling requests or demand their unpaid wages. They can even partner with co-workers to hold an employer accountable.
Employers who violate the rights of one worker may have tried to use the same manipulative practices with many others. Discussing wages and scheduling practices at a company with a skilled legal team can be a first step toward a successful wage and hour lawsuit brought against an employer. Workers who understand the rules that govern overtime pay can use that knowledge to identify when businesses violate their rights.