“I’m a salaried employee, so I don’t get overtime.” This is one of the most common statements we hear during labor law consultations. Many employers and employees mistakenly believe a simple rule: hourly workers get overtime, and salaried workers do not. However, in the realm of labor law, the method of payment is only one of several criteria, not the absolute deciding factor.
Your “Actual Duties,” Not Your “Title,” Determine Your Rights
The Fair Labor Standards Act (FLSA) includes an “Exempt” provision that excludes certain employees from overtime rules. This typically applies to executives, administrative managers, and professionals.
The problem arises when a company arbitrarily gives an employee a fancy title like “Manager” or “Director,” pays a fixed salary, but assigns them duties that are no different from regular staff (such as manual labor or repetitive tasks). This is known as “Title Inflation.”
To be legally exempt from overtime, an employee must not only meet a salary threshold but their duties must significantly impact the employer’s business, and they must exercise “Discretion and Independent Judgment.” If you wear the badge of a manager but lack the authority to hire or fire, cannot make policy decisions, and merely follow orders from above, you are a Non-exempt employee. You have the legal right to receive 1.5 times your regular rate for all overtime hours worked.
Do not let a fixed salary hide your rightful earnings. Reclaim your rights through an expert’s accurate assessment.
[Contact Us]
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KakaoTalk Channel: Song Law Firm
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Phone: 201-461-0031
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Email: mail@songlawfirm.com
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Website: www.songlawfirm.com
Disclaimer: The information in this column is for general informational purposes only and does not constitute legal advice. Legal outcomes may vary depending on the specific facts of each case. Please consult with an attorney regarding your specific situation.
