Are Salaried Employees Entitled to Overtime Pay?

Are salaried employees entitled to overtime pay.

There can be many benefits to being a salaried employee. But unfortunately, it’s not uncommon for unscrupulous employers to inflate job titles, take advantage of salaried employees, or misclassify workers to avoid paying overtime. Critically, there are many misconceptions when it comes to overtime pay for workers — and in many cases, overtime pay for salaried employees may be required by law.

How Does Overtime in Ohio Work?

An employer can generally require an employee to work overtime, unless the employment contract stipulates otherwise. Under the Federal Labor Standards Act (FLSA) and Ohio law, overtime pay is mandated unless an employee is exempt from these protections. Specifically, both public and private employers are required by law to pay non-exempt employees at a rate of not less than time and one half their regular rate of pay for any hours worked over 40 in a work week.

When are Salaried Employees Eligible for Overtime Pay?

Overtime pay for salaried employees may be required in certain cases where the employee worked more than 40 hours per week. As of a 2024 change to the FLSA, salaried employees who earn less than $844 a week are eligible to receive overtime pay — this threshold will increase on January 1, 2025 for employees on salary who earn less than $1,128 weekly. However, both the FLSA and Ohio law exclude some groups of employees from overtime pay eligibility, regardless of their salary.

Exemptions to Overtime Pay for Salaried Employees

It’s important to understand that there are specific exemptions to the overtime pay for salaried employees laws, depending on an employee’s job duties. Employees who meet the exemption guidelines would not be eligible to receive overtime pay, regardless of how many hours they worked, unless an employment contract specified otherwise. The following employees are considered exempt from both the FLSA and Ohio overtime laws:

  • Executive employees — An employee may meet the executive exemption if they are paid on a salary basis and their primary job duties relate to the management of the company. Such duties can include interviewing, training, setting rates of pay and hours, supervising, assigning work, handling disciplinary matters, hiring, firing, and other such managerial tasks. The employee must also customarily and regularly direct the work of at least two-full time employees.
  • Administrative employees — An employee whose work is administrative in nature is typically exempt from overtime pay. Administrative employees are those who handle the performance of office or other non-manual work that is directly related to the management of the company or business operations, including areas such as accounting, tax, financing, insurance, marketing, advertising, research, quality control, human resources, compliance, or legal. These employees are required to make decisions on behalf of the company using their “discretion and independent judgment.”
  • Learned professionals — An employee is considered a learned professional who is exempt from overtime pay if their primary work duties require advanced knowledge and the exercise of discretion and judgment. Fields that involve learned professionals can include law, medicine, accounting, engineering, and finance. Generally, these employees need to have an advanced or specialized degree in order to enter their field.
  • Creative professionals — Creative professionals who are exempt from overtime pay include those whose primary job duties involve the performance of work that require imagination, originality, talent, or invention in an artistic or creative field. These employees can include musicians, authors, artists, and actors.
  • Outside sales employees — Employees who engage in making sales, obtaining orders, or entering into contracts for services paid for by the customer are considered outside sales employees. They are customarily and regularly engaged in their work away from the employer’s place of business. Unlike with the other professional exemptions, outside sales employees are not required to be salaried.

Agricultural workers, live-in babysitters, adult caregivers, members of an employer’s immediate family, amusement park workers, newspaper delivery drivers, and taxi drivers are also exempt from overtime pay. In addition, those who work for employers bringing in less than $150,000 each year are excluded from overtime pay in Ohio.

What Happens if You Did Not Receive Your Rightful Overtime Pay?

In the event you were eligible for overtime pay for salaried employees in Ohio — and your employer violated the law — you may be entitled to file a legal claim to recover your rightful compensation. You should first give your employer the opportunity to resolve the matter. However, if discussions with your employer are unsuccessful, you may need to pursue further action. In such cases, you can file a complaint with the Ohio Department of Commerce or the U.S. Department of Labor, requesting that an investigator look into your claim.

You may also be able to commence a lawsuit in court to recover your unpaid overtime. By filing a lawsuit for your overtime pay claim, you may be able to recover a broad scope of damages, including:

  • The overtime compensation you are owed
  • Interest on your unpaid wages
  • Penalties
  • Attorney fees
  • Litigation costs

By filing your lawsuit under the federal FLSA, you might also be entitled to receive liquidated damages if you can establish that the employer’s violation was willful. Also referred to as “double damages,” these types of damages are awarded in an amount equal to the unpaid overtime. This could significantly increase the overall value of your claim.

Contact an Experienced Ohio Employment Law Attorney

If you are eligible to receive overtime pay for salaried employees, it’s essential to have a knowledgeable employment law attorney who can assess your case and assist you with recovering the compensation to which you’re entitled.

Located in Westlake and offering trusted representation to clients throughout Ohio, Lalak LLC is dedicated to fighting for the rights of employees who have been denied their rightful overtime wages. Contact Lalak LLC today to schedule a free, confidential, no-obligation consultation and learn how we can assist you.