Some workers are eligible for overtime pay, while others generally are not. Employees who put in more than 40 hours per week can sometimes receive 150% of their average hourly wage for any additional time worked. Others may have to perform extra work without supplemental pay.
People often oversimplify the differences between these two groups of workers. They may claim that workers who receive hourly pay receive overtime wages while workers who receive salary wages do not. While that is often the case, that is not universally true.
Some workers paid on a salary basis are technically eligible for overtime wages. In fact, their employers may violate their rights under federal law if they schedule them to work more than 40 hours per week and do not pay them extra for those additional hours. The number of workers who have employment contracts and salary pay who are eligible for overtime wages may soon increase.
New overtime rules increase the minimum salary
Companies could theoretically abuse salary-based overtime exemptions quite easily. They could pay workers a salary that is the equivalent of minimum wage for 40 hours and then demand that they put in 60 hours. Such practices could easily undermine minimum wage rules.
Therefore, the salary necessary for a company to exempt a worker from overtime wages is somewhat higher than 40 hours of minimum wage. Since 2019, the minimum salary necessary for a worker to be exempt from overtime pay has been $35,568. That changes on July 1st, 2024, when the minimum salary increases to $43,888.
Companies have a bit of time to react, and then a second increase takes effect. On January 1st, 2025, workers must make $58,656 or more to be exempt from overtime requirements. Thousands of workers who currently make low salaries may soon receive raises that push them above that exemption threshold. Otherwise, they may no longer have to work extra shifts on the weekend because their company does not want to pay them overtime wages.
In cases where companies do not adjust their practices but continue demanding overtime work without compensation, workers may need to consider pursuing wage claims. Those familiar with employment laws are in the best position possible to assert themselves when dealing with potentially inappropriate employer practices.
