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Overtime pay for salaried employees depends on whether the employee is legally exempt or nonexempt under the Fair Labor Standards Act (FLSA) and any applicable state law. Being paid a salary does not automatically mean an employee is exempt from overtime.

Under the federal FLSA, covered nonexempt employees generally must receive overtime pay at not less than 1.5 times their regular rate of pay for hours worked over 40 in a workweek. Salaried employees can still be nonexempt and eligible for overtime if the exemption requirements are not met.

If you already know the hourly rate and overtime hours you want to test, use the RaiseDelta Overtime Pay Calculator to estimate overtime earnings and total gross pay.

Do salaried employees get overtime pay?

Some do. The key distinction is not simply salary vs hourly; it is usually exempt vs nonexempt. If you are comparing the two pay structures more broadly—including overtime, benefits, predictable income and actual hours—see Salary vs Hourly: Which Is Better?.

• Exempt salaried employee: generally not entitled to federal overtime if all requirements for a valid exemption are met.
• Nonexempt salaried employee: can be entitled to overtime even though the employee receives a salary.

This is one of the most common payroll misunderstandings. A job title such as “manager,” “supervisor,” or “administrator” does not by itself determine overtime eligibility. Federal exemption rules look at compensation and actual job duties.

Current federal salary threshold for overtime exemptions

As of 2026, the U.S. Department of Labor is applying the 2019 federal rule for the main executive, administrative and professional exemptions. The standard salary level is $684 per week, equivalent to $35,568 per year for a full-year worker.

The Department of Labor announced in May 2026 that it restored the operative 2019 regulatory text after the 2024 overtime rule was judicially vacated. The current highly compensated employee threshold is $107,432 per year, subject to additional requirements.

See the U.S. Department of Labor’s 2026 technical-amendment announcement and its overtime fact sheets for federal guidance.

Important: earning at least the federal salary threshold does not automatically make an employee exempt. The applicable duties test and other exemption requirements must also be satisfied. Some states use higher salary thresholds or broader overtime protections.

The three main tests for many white-collar exemptions

For many executive, administrative and professional exemptions, federal rules generally look at three broad requirements:

1. Salary basis test

The employee generally must receive a predetermined salary that is not reduced because of variations in the quality or quantity of work, subject to limited permitted deductions.

2. Salary level test

For most employees using the standard executive, administrative or professional exemption, the current federal threshold is $684 per week. Certain professions and exemption categories follow different rules.

3. Duties test

The employee’s actual primary duties must fit the requirements of the claimed exemption. A title alone is not enough. For example, calling someone a manager does not make that person exempt if the employee’s real duties do not satisfy the executive exemption.

Salaried exempt vs salaried nonexempt

Question	Salaried exempt	Salaried nonexempt
Paid a salary?	Yes	Yes
Federal overtime after 40 hours?	Generally no, if the exemption is valid	Generally yes, if covered by the FLSA
Do duties matter?	Yes	Yes, especially when determining whether an exemption applies
Does job title alone decide status?	No	No
Can state law provide more protection?	Yes	Yes

So a salaried employee can be paid a fixed amount each week and still qualify for overtime. The salary method of payment and overtime classification are related, but they are not the same thing.

How overtime pay can work for a salaried nonexempt employee

The exact regular-rate calculation can depend on the compensation arrangement, bonuses, commissions and other facts. For a simple illustration, assume a nonexempt employee earns a salary intended to cover 40 straight-time hours each week and receives no additional compensation that changes the regular rate.

Example salary: $52,000 per year

• Weekly salary: $52,000 ÷ 52 = $1,000
• Illustrative regular hourly rate: $1,000 ÷ 40 = $25.00
• Illustrative overtime rate at 1.5×: $25 × 1.5 = $37.50
• Five overtime hours: 5 × $37.50 = $187.50

In this simplified example, the employee would receive $1,000 in straight-time salary plus $187.50 in overtime for a total of $1,187.50 gross pay for the week.

You can run the same numbers in the Overtime Pay Calculator. For a simple explanation of the 1.5× overtime formula and common examples, read What Is Time and a Half?. For broader hourly-to-annual comparisons, use the Hourly to Salary Calculator.

Why the regular rate may be different from a simple salary conversion

Real payroll calculations can be more complicated than annual salary ÷ 52 ÷ 40. Depending on the situation, the FLSA regular rate can include certain nondiscretionary bonuses, commissions or other compensation. Different lawful compensation arrangements can also affect how overtime is calculated.

That is why the calculator and examples on RaiseDelta should be used as planning estimates, not as a substitute for a payroll determination or legal advice.

Can a salaried employee work more than 40 hours without overtime?

Yes, if the employee is properly classified as exempt under the rules that apply. A validly exempt employee can generally work more than 40 hours in a workweek without receiving FLSA overtime pay.

But if a salaried employee is actually nonexempt, federal overtime protections can apply even when the employer pays a fixed salary. Misclassifying a nonexempt worker as exempt does not automatically remove the employee’s overtime rights.

Does earning more than $35,568 automatically make you exempt?

No. The federal salary threshold is only one part of the analysis for many white-collar exemptions. An employee can earn more than $35,568 per year and still be nonexempt if the duties or other requirements of the claimed exemption are not met.

The key point is that salary alone does not determine overtime eligibility. The employee’s actual duties, salary basis, salary level and any applicable exemption rules must all be considered.

Common salaried jobs that may still qualify for overtime

Eligibility depends on the facts, not the title. Examples that can require closer review include assistant managers who spend most of their time doing ordinary frontline work, salaried clerical staff, coordinators, some supervisors with limited authority and other employees whose actual duties do not meet an exemption test.

On the other hand, many employees whose primary duties genuinely satisfy executive, administrative or professional exemption requirements may be exempt if the other conditions are also met.

Do state overtime laws change the answer?

They can. Federal law provides a baseline, but states may impose higher salary thresholds, daily overtime rules or other protections. California, for example, has overtime and exemption rules that differ significantly from the federal baseline.

If both federal and state overtime laws apply, the rule providing the greater employee protection may control. Employees and employers should check the law for the state where the work is performed rather than relying only on the federal threshold.

Overtime pay and your pay stub

For nonexempt employees, a pay stub may show regular earnings, overtime hours, overtime rate, gross pay, taxes and deductions as separate items. If you want help reading those fields, see What Is a Pay Stub? and What Is Gross Pay?.

For federal income tax withholding terminology, see What Is FIT on a Pay Stub?.

Frequently asked questions

Can salaried employees get overtime?

Yes. Salaried employees who are nonexempt can qualify for overtime. Receiving a salary by itself does not create an overtime exemption.

What is the current federal salary threshold for overtime exemption?

As of 2026, the Department of Labor is applying a standard salary level of $684 per week, equivalent to $35,568 per year, for most employees using the executive, administrative or professional exemptions. Other requirements still apply.

Is a manager automatically exempt from overtime?

No. Job titles do not determine exempt status. The employee’s compensation and actual duties must satisfy the requirements of the exemption being used.

How is overtime calculated for a salaried employee?

It depends on the pay arrangement and the employee’s regular rate under the FLSA. A simple salary-to-hourly conversion can illustrate the math, but the legal regular rate may include bonuses, commissions or other compensation and can require a different calculation.

Do salaried employees get overtime after 40 hours?

Covered nonexempt salaried employees generally can be entitled to federal overtime for hours worked over 40 in a workweek. Properly exempt salaried employees generally are not entitled to FLSA overtime.

Can state law require more overtime than federal law?

Yes. Some states have higher salary thresholds, daily overtime requirements or other protections that go beyond the federal FLSA baseline.

Check your overtime estimate

If you are a salaried nonexempt employee and know the regular hourly rate that applies to your overtime calculation, use the RaiseDelta Overtime Pay Calculator to estimate overtime pay, weekly gross pay and annual equivalents.