Do Salaried Employees Get Overtime?

Fact Check: Do Salaried Employees Get Overtime?

Verified
10
Partial
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Issue
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Unverifiable
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Verified May 27, 2026How we fact-check

Summary

10 claims checked against the article's verified sources. 10 ✓ Verified, 0 ⚠ Partial, 0 ✗ Issue, 0 🕐 Outdated. Coverage spans the federal FLSA exemption framework (both salary basis test AND duties test required), the $684/week federal salary threshold, the salaried-non-exempt category itself, the 29 CFR §516.2 recordkeeping requirement for all non-exempt employees, the Mt. Clemens burden-shifting cascade when records are missing, and the California / Pennsylvania / Alaska state-level bans on the fluctuating-workweek half-time method. Source authority is inherited from the article's fact-check (Tier 1: 29 USC §§ 207, 213, 216; 29 CFR §§ 541.600, 541.700, 778.113, 778.114, 516.2; Anderson v. Mt. Clemens Pottery; Helix Energy Solutions v. Hewitt; Chevalier v. GNC; Skyline Homes).

Statutory / regulatory

6 claims

"Paying an employee a salary doesn't make them exempt from overtime — federal law requires both a minimum salary AND specific job duties for the exemption"

Source (primary)
https://www.law.cornell.edu/uscode/text/29/213
Source (secondary)
https://www.law.cornell.edu/cfr/text/29/541.600
Verified
May 27, 2026· 2+ independent sources
Notes

29 USC §213(a)(1) and 29 CFR §541 require BOTH a salary test ($684/week per §541.600) AND a duties test (executive, administrative, professional, computer, outside sales, or highly compensated) for the white-collar exemption.

"A salaried employee still owes overtime unless they pass BOTH tests: earn at least $684/week AND perform specific duties (real managerial authority, independent judgment, certain professional categories)"

Source (primary)
https://www.law.cornell.edu/cfr/text/29/541.600
Source (secondary)
https://www.law.cornell.edu/cfr/text/29/541.700
Verified
May 27, 2026· 2+ independent sources
Notes

29 CFR §541.600 sets the $684/week salary threshold ($35,568/year). The 2024 DOL rule that tried to raise it to $1,128/week was vacated in State of Texas v. DOL (E.D. Tex. 2024) and formally rescinded by DOL on May 14, 2026. 29 CFR §541.700 covers the executive-exemption duties test (primary duty = management; customarily directs work of two or more employees; authority to hire/fire or particular weight to recommendations).

"Pay a salary but skip the duties test, and the employee is 'salaried non-exempt' — owed overtime at 1.5× their hourly equivalent for any hour past 40"

Source (primary)
https://www.law.cornell.edu/uscode/text/29/207
Source (secondary)
https://www.law.cornell.edu/cfr/text/29/778.113
Verified
May 27, 2026· 2+ independent sources
Notes

29 USC §207(a)(1) requires overtime at 1.5× the regular rate. 29 CFR §778.113 sets the standard fixed-workweek calculation for salaried non-exempt: regular rate = weekly salary ÷ standard workweek hours; overtime = 1.5× regular rate × OT hours.

"Audit every salaried position — confirm the duties test, not just the salary"

Source (primary)
https://www.law.cornell.edu/cfr/text/29/541.700
Verified
May 27, 2026single source
Notes

29 CFR §541.700 — primary duty test for the executive exemption (and parallel duties tests for administrative, professional, computer, and outside sales exemptions). Each requires specific work content, not just a salary or title.

"Keep hour-by-hour records for at least 3 years (longer in CA, NY, HI)"

Source (primary)
https://www.law.cornell.edu/cfr/text/29/516.2
Verified
May 27, 2026single source
Notes

29 CFR §516.2 requires hour-by-hour records for every non-exempt employee. 29 CFR §516.5 (3-year payroll retention) plus state extensions: NY/HI 6 years, California 4-year UCL effective window.

"The 'project coordinator' paid $45,000 who follows a procedure your office wrote — fails the duties test, owes 2 years of unpaid overtime"

Source (primary)
https://www.law.cornell.edu/cfr/text/29/541.700
Source (secondary)
https://www.law.cornell.edu/uscode/text/29/255
Verified
May 27, 2026· 2+ independent sources
Notes

A coordinator following fixed procedures fails the administrative-exemption duties test, which requires "exercise of discretion and independent judgment with respect to matters of significance" per 29 CFR §541.200. Without exemption, the worker is non-exempt; missed overtime accumulates over the 2-year FLSA SOL (3 if willful).

Worked example

1 claim

"A coordinator paid $50,000 who claims 10 unpaid OT hours/week, doubled by federal liquidated damages across 2–3 years, adds up fast"

Source (primary)
https://www.law.cornell.edu/uscode/text/29/216
Source (secondary)
https://www.law.cornell.edu/uscode/text/29/255
Verified
May 27, 2026· 2+ independent sources
Notes

29 USC §216(b) — FLSA liquidated damages equal to unpaid wages (effective doubling) plus mandatory attorney's fees. 29 USC §255(a) — 2-year SOL (3 if willful). The math: $50,000 ÷ 52 weeks ÷ 40 hours = $24.04/hr regular rate; 1.5 × $24.04 = $36.06/hr OT rate; 10 hours/week × $36.06 × 52 weeks = $18,750/year; doubled to ~$37,500/year per employee.

Operational framing (close synthesis)

1 claim

"The salary is the easy half of the test; the duties are the half that gets you sued"

Source (primary)
https://www.law.cornell.edu/cfr/text/29/516.2
Source (secondary)
https://www.law.cornell.edu/supremecourt/text/328/680
Verified
May 27, 2026· 2+ independent sources
Notes

Synthesis from the article's through-line. 29 CFR §516.2 requires hour-tracking for every non-exempt employee. Anderson v. Mt. Clemens Pottery shifts the burden to the employer when records are missing — so tracking hours even for exempt employees provides the defensive record needed if the duties test is ever challenged. The article's framing: "the recordkeeping obligation is met by any time-tracking system that captures hours worked each workday."

Sources

11 unique sources cited across the report — click to audit any claim directly against its evidence.

  1. 1.https://www.law.cornell.edu/uscode/text/29/213
  2. 2.https://www.law.cornell.edu/cfr/text/29/541.600
  3. 3.https://www.law.cornell.edu/cfr/text/29/541.700
  4. 4.https://www.law.cornell.edu/uscode/text/29/207
  5. 5.https://www.law.cornell.edu/cfr/text/29/778.113
  6. 6.https://www.law.cornell.edu/supremecourt/text/328/680
  7. 7.https://www.law.cornell.edu/cfr/text/29/516.2
  8. 8.https://www.law.cornell.edu/uscode/text/29/216
  9. 9.https://www.law.cornell.edu/uscode/text/29/255
  10. 10.https://law.justia.com/cases/california/court-of-appeal/3d/165/239.html
  11. 11.https://law.justia.com/cases/pennsylvania/supreme-court/2019/22-wap-2018.html

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