Overtime Exempt Employees
A common question among employers is whether they must pay overtime rates to all of their employees, and if not, which employees are exempt?
While there are exceptions, the general rule is that employees whose primary duties relate to management of the general business operations of the employer and include the exercise of discretion and independent judgment are exempt from the payment of overtime.
A common myth is that an employer does not have to pay overtime if his employee is on salary, or if the employee’s job title includes the word “manager”. In fact, it is the employee’s duties that determine whether he is exempt from overtime pay, not his job title or whether he receives a regular salary.
The United States Department of Labor Wage and Hour Division website offers helpful guidance to determine when an employee should receive overtime pay, and which employees are exempt from the overtime pay law.
Misclassification of employees can result in costly litigation, so employers should conduct an internal audit at least annually to review employee classifications, particularly in situations where employees’ duties have changed.
Classification of employees in compliance with current wage and hour law is one of the areas where the attorneys at Scolieri-Beam Law Group, P.C. can help. Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can help you navigate regulations affecting your business. Contact us today at (412)765-0546 or info@scolierilaw.com.