Certain workers already know that they have a right to request overtime pay. Hourly employees benefit from state and federal statutes enshrining their protection to receive extra pay when they have to work more than 40 hours. Frequently, companies refer to workers paid on a salary basis as exempt employees.
The idea is that the company is exempt from overtime pay laws because of the security and more generous pay that usually comes with a salary employment arrangement. Contrary to what people often presume, some workers with salary pay arrangements are actually eligible for overtime wages. They may have the right to receive 150% of their typical hourly wage for extra work because their current salaries don’t actually make them exempt from overtime pay rules.
When are salary workers able to request overtime pay for the extra time they work?
When they receive a low salary
Many companies try to get the maximum amount of labor possible for the lowest amount of pay. Promoting some workers to managerial or shift lead positions is a common strategy for reducing operating expenses.
Managers, assistant managers and others paid on a salary basis may face regular requests for overtime. They may have to cover shifts when other workers call in sick and could put in well more than 40 hours per week. If the company doesn’t provide an adequate salary, then the worker may still be eligible for overtime pay.
Many organizations specifically provide the lowest possible salary they can to exempt an employee. Until recently, the minimum salary requirement was $35,568. However, the federal government increased salary requirements as of July 1st, 2024. Workers now deserve overtime pay if their salary is less than $43,888.
Minimum salary requirements increase again as of January 1st, 2025. After that point, any workers paid less than $58,656 may be eligible for overtime wages. Many assistant managers may receive a salary that falls below that threshold.
Unless the company increases their pay or decreases their scheduled hours, they may have the right to request overtime pay for the excess time they worked. Businesses may still try to manipulate workers into uncompensated overtime. Employees may need to take legal action if employers do not change their practices to align with new salary requirements.
Pursuing a wage claim against an employer can potentially compensate workers for previously unpaid overtime. Employees should not have to work long hours without extra compensation when their salaries are relatively low.