Should salaried managers receive compensation for time worked over 40 hours?

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Should salaried managers receive compensation for time worked over 40 hours?

Is it legal to make a salaried manager work more than 40 hours a week with no compensation for the extra time? Even if their paycheck clearly sates 40 hours and the employee has never been shown in writing that these hours were required?

Asked on March 30, 2012 under Employment Labor Law, Alabama

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The key issue is not actually whether the manager is salaried or not, but whether the manager is exempt from overtime. Not all salaried staff are exempt; not even all people called "manager" are exempt. To be exempt from overtime, a manager must be paid on a salary (not hourly) basis, and he or she must also meet the test for either the "executive" exemption (which should be called the "managerial exemption"--it does not apply only to executives) or the administrative exemption. You can find these tests on the U.S. Department of Labor's website, under "wages and hours," and apply them to the job at issue.

If the manager in question meets the exemptions, then as a salaried exempt employee, he or she can be made to work any number of hours without additional compensation. However, if the manager does not meet one or another test for exemption, such as due to having insufficient authority or duties that don't meet the criteria, then he or she would be due additional compensation (overtime) when working more than 40 hours in a week.

It can be complicated to compute overtime for non-exempt salaried staff; if you believe a salaried manager may be due overtime, consult with an employment law attorney about the situation.


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