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Your pay is only part of the reason you are eligible or ineligible for overtime. In fact, many employees who are paid a “salary” still are entitled to additional pay for long hours. The reason for this is that the “salary basis test” is only one of a multiple part condition that would make you eligible or ineligible for overtime pay.
The salary portion of an employee’s pay satisfies only one of the requirements under which a company can refuse to pay overtime to an employee. In addition to being paid a salary, the employee must have certain job duties to make them exempt. For example, manual laborers who are paid on a salary typically are eligible for overtime, regardless of their pay.
Paying an employee on salary is tricky. For example, if the employer makes partial day deductions from the salary, those deductions may have the effect of not paying the employee on a salary. Moreover, there are special rules and regulations for paying employees on a salary that an employer must follow to satisfy the first part of an exemption. The salary portion of the exemption only is one small part. Without satisfying the second part, a company still may need to pay its employees overtime in addition to their salary.
The salaried exemptions only apply to a very limited type of employees. Employees may be paid on a salary basis and exempt if they: 1) directly supervise 3 or more employees; 2) have a significant amount of independent discretion and judgment as to matters of significance, to the business administration; and/or 3) have a professional degree, such as engineering, accounting, computer programming law, medicine, etc…, and actually use your degree for your job.