Salaried employees receive a fixed, regular annual sum, the amount of which is determined by the employer. This income remains the same regardless of the number of hours worked per week. While many salaried employees are not eligible for overtime pay, some who remain non-exempt may be eligible to receive overtime; overtime is defined by the U.S. Department of Labor as “pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay.” Employees and employers alike must be aware of local and federal laws regarding overtime pay to understand their respective rights and obligations, and to identify and avoid costly mistakes and potential claims.
Exempt or Non-Exempt?
The Fair Labor Standards Act (“FLSA”) is a federal law that determines which employees have a right to receive overtime pay. As of July 1st, 2024, the wage threshold for overtime eligibility is $884 per week, or $43,888 per year; these thresholds are continuously reevaluated with another threshold increase slated for January 1st, 2025.
Employers must understand these everchanging laws to ensure compliance, and employees should know what to do if their employer fails to follow the FLSA and pay them the overtime pay they have earned. If you have questions about overtime laws, contact us at 301-441-1400 to schedule a consultation with one of our experienced employment law attorneys.
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