Often times, salaried employees have misconceptions when it comes to overtime, and if they are qualified or not to receive overtime pay. While most salaried employees are exempt from overtime, salaried employees may also be eligible for overtime, but only in the following situations.
For salaried employees who are qualified and entitled to overtime pay, their overtime pay rates are dependent on certain factors. Things such as the number of hours that they work or are scheduled to work, as well as the number of hours they are anticipated to work, if they vary, will all help to determine the rate of overtime pay qualified employees are entitled to.
Salaried employees fall into two different categories, according to their hours in order to determine their overtime rate:
Salaried employees, whose hours are based on a fixed number of work hours each week, will have their regular rate of pay calculated by taking their salary, and dividing them by the fixed number of hours they work. In the event that these salaried employees are required to work more than their fixed number of hours, then they must be paid time and a half.
Salaried employees, whose hours fluctuate, or vary, each week, are only entitled to receive overtime pay, or half of their regular time, in the event that they work more than 40 hours in a week. The Department of Labor, however, has rules for this to be an effective method of paying overtime. An employer and employee must have an agreement in regards to the “fluctuating workweek” and the employee must fully understand what this entails in regards to their regular and overtime pay. Some states have made the “fluctuating workweek” illegal, requiring that the salaried employees be paid the typical time and a half rate.