Salaried Employees Can Be Either Exempt or Not Exempt
There is a common misconception that “salaried” means “exempt” under the Fair Labor Standards Act (“FLSA”) or Ohio wage laws.  While many exempt employees are salaried, not all salaried employees are exempt. This results in underpayment for employees who are entitled to at least minimum wages for all hours worked, and overtime pay for hours worked in excess of 40 in a workweek.
Overtime for Non-Exempt Employees
Overtime pay is calculated at a rate of one and a half an employee’s “regular rate”. If a non-exempt employee is hourly, then the regular rate is usually their hourly rate. If the non-exempt employee is salaried, the regular rate is their hours worked in a workweek divided by the amount of salary attributed to that workweek. The regular rate should also be used for purposes of calculating such things as non-discretionary bonuses or safety incentive payments.
While a thorough consideration of all the facts may lead to the ultimate conclusion that your are indeed exempt, you should not automatically accept an “exempt” status simply because you are a salaried employee and/or because your employer says so.
Salaried employees whose hourly pay per week ends up being less than the required $7.25/$8.70 should call us at 800-274-5297. Additionally, employees who work more than 40 hours in a workweek but do not receive an overtime can also reach out. Remember, it is unlawful for an employer to retaliate against you for asking questions about your hours worked and wages paid, exercising your rights under the FLSA and/or Ohio wage and hour laws.
 Note that this is not the same “exemption” as used concerning your taxes. See for example Withholding Exemptions – Personal Exemptions – Form W-4
 This post was first published in 2017. The Ohio minimum wage was $8.10 at the time. Updates reflect the 2020 minimum wage in Ohio.
(This Notice is for informational purposes. It is not legal advice).