Salaried is not the same as exempt.
The classification controls whether you earn overtime. Two tests, several exemption categories, and a lot of common misconceptions.
Entitled to overtime
1.5× pay for hours over 40 / week
Typically hourly (but can be salaried)
Hours must be tracked
Most U.S. employees fall here
No overtime required
Not entitled to overtime pay
Must be paid on salary basis
Must meet salary AND duties tests
Typically management or professional roles
The salary threshold (2026)
To qualify as exempt, an employee must be paid on a salary basis at or above the federal minimum.
$844
$43,888
Some states set higher thresholds. California, for example, requires at least 2× the state minimum wage.
The duties tests
Salary alone is not enough. The employee's actual duties must qualify under one of three exemption categories.
01
Executive
Primary duty is management of the enterprise or a department
Customarily directs the work of two or more other employees
Has authority to hire / fire, or input on personnel decisions
02
Administrative
Primary duty is office or non-manual work related to management or business operations
Exercises discretion and independent judgment on significant matters
03
Professional
Primary duty requires advanced knowledge in a field of science or learning
Knowledge customarily acquired through prolonged specialized instruction
Includes doctors, lawyers, engineers, teachers, accountants
Computer employee exemption
Special rules apply to qualifying computer professionals.
$27.63 / hr
$844 / wk
Qualifying duties:
Application of systems analysis techniques
Design, development, documentation, analysis of computer systems
Design, testing, modification of computer programs
Help-desk technicians, computer repair technicians, and similar roles typically do not qualify for the computer-employee exemption.
Highly compensated employees
A simplified test applies to highly compensated employees. They must still be paid on a salary basis and perform at least one duty from the executive, administrative, or professional categories.
$132,964
Common misconceptions
| Myth | Reality |
|---|---|
| “Salaried employees don't get overtime” | Salary alone doesn't make you exempt — duties tests apply too. |
| “Job title determines status” | Actual job duties matter, not titles. A “Manager” title doesn't automatically mean exempt. |
| “Employers can choose how to classify you” | Classification must be based on FLSA criteria, not employer preference. |
| “Small businesses are exempt” | Most employees are covered even when the business is small. |
The classification follows the duties, not the title and not the paycheck.
Think you're misclassified?
If you suspect you've been incorrectly classified as exempt and should be earning overtime, here's the order of operations:
01
Review your duties
Compare your actual responsibilities against the exemption criteria above.
02
Talk to HR
Ask why you were classified the way you were. Get the answer in writing.
03
File a complaint
Contact the Department of Labor Wage and Hour Division.
04
Consult an attorney
Employment lawyers can evaluate your situation and quantify back pay.
Run the math
Apply this to a real timesheet, in seconds.
For general education only. Overtime law has exceptions. For a specific situation, contact your state labor department or an employment attorney.