I’m salaried. Do I get overtime pay?

If you earn less than $684/week or don’t meet the FLSA duties tests for executive, administrative, or professional exemption: yes, you are 'salaried non-exempt' and entitled to overtime. Your overtime is calculated by dividing your weekly salary by 40 hours to get your regular rate, then paying 1.5× that rate for hours over 40.

What is the difference between salaried exempt and salaried non-exempt?

Both are paid a salary. Exempt employees meet both the salary threshold ($684/week) and the duties test — they receive no overtime. Non-exempt employees either earn less than $684/week OR don’t meet the duties test — they are entitled to overtime even though they receive a salary. Misclassifying non-exempt employees as exempt to avoid overtime is one of the most common FLSA violations.

What is the fluctuating workweek (FWW) method?

Under FWW, the employee and employer agree the salary covers all hours in any workweek (not just 40). Because the salary already covers straight-time for all hours, only the 0.5× premium is owed for overtime hours. This produces lower overtime pay than the standard method. FWW requires a genuine agreement, salary paid in full regardless of hours, and compliance with minimum wage for every week.

Can my employer convert me to FWW without my agreement?

No — FWW requires genuine agreement between employer and employee before the work is performed. A unilateral employer declaration that FWW applies is not sufficient. The agreement should be in writing, clearly explain that the salary is meant to cover all hours worked, and the employee should sign acknowledging understanding of the arrangement.

If I’m salaried non-exempt, must my employer track my hours?

Yes — FLSA requires employers to maintain accurate records of hours worked for all non-exempt employees, including salaried non-exempt. If the employer doesn’t track your hours, you may submit your own records of hours worked. An employer cannot simply say 'you’re salaried, we don’t track hours' for non-exempt employees — if you work overtime and it’s not tracked, the employer may be unable to defend against overtime claims.

Salaried Non-Exempt Employees: How Overtime Works When You’re Paid a Salary

One of the most widespread misconceptions in employment law: salaried employees automatically don’t get overtime. This is false. Salaried employees earning under $684/week, or who don’t meet the FLSA duties tests regardless of salary, are 'salaried non-exempt' and entitled to overtime. Their overtime is calculated differently from hourly workers — but they still receive time-and-a-half for overtime hours.

Salaried Non-Exempt: Who Is This?

A salaried non-exempt employee is paid a fixed salary but is not exempt from overtime because they either: (1) earn less than $684/week ($35,568/year), or (2) don’t meet the duties test despite earning above the salary threshold. Examples: hourly-equivalent administrative staff on salary, inside sales employees, non-managerial supervisors, anyone on salary who doesn’t exercise independent judgment on significant matters.

Two Methods for Calculating Salaried Non-Exempt Overtime

Method 1 (Hourly Equivalent): Convert salary to hourly rate, then apply standard overtime. Weekly salary ÷ 40 hours = regular hourly rate. Overtime = 1.5× hourly rate × OT hours. Method 2 (Fixed Salary for Variable Hours / Half-Time Method): When the employer and employee agree salary covers all straight-time hours worked: regular rate = weekly salary ÷ actual hours worked. Overtime premium = 0.5× regular rate × OT hours.

Salaried non-exempt overtime: hourly equivalent vs. half-time method comparison

Method	Salary	Actual Hours	Regular Rate	OT Hours	OT Pay	Total Gross
Hourly equivalent	$800/week	50 hours	$800/40 = $20/hr	10 hrs	$20 × 1.5 × 10 = $300	$1,100
Half-time method	$800/week	50 hours	$800/50 = $16/hr	10 hrs	$16 × 0.5 × 10 = $80	$880

⚠️Employers Often Use the Wrong Method

The half-time method is often presented as employer-favorable (lower total pay). However, it requires: a specific written agreement that the salary covers all straight-time hours including overtime hours, genuine agreement between employer and employee, and application to variable-hour workweeks. Without a proper agreement, employers must use the hourly equivalent method — which often produces higher overtime pay.

The Fluctuating Workweek (FWW) Agreement

The Fluctuating Workweek (FWW) arrangement is the specific agreement structure that allows the half-time method. Requirements: (1) Written agreement that salary is intended to cover all hours in any workweek; (2) Salary is paid regardless of whether hours are more or fewer than 40; (3) Overtime hours earn only the 0.5× premium; (4) The salary must cover at least federal minimum wage for any given week’s hours. Without FWW agreement: hourly equivalent method applies.

Calculate Salaried Non-Exempt Overtime

Enter your weekly salary and total hours worked to find your correct overtime pay under either method.

Open Overtime Pay Calculator →

Salaried Non-Exempt Employees: How Overtime Works When You’re Paid a Salary

Salaried Non-Exempt: Who Is This?

Two Methods for Calculating Salaried Non-Exempt Overtime

The Fluctuating Workweek (FWW) Agreement

Frequently Asked Questions

Frequently Asked Questions

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