Are salaried employees exempt from overtime in the US?

Many employers incorrectly assume that paying someone a salary makes them exempt from overtime. Under the FLSA, exemptions require both a salary threshold and a duties test. To be exempt as executive, administrative, or professional (EAP), an employee must earn at least $684/week ($35,568/year) on a salary or fee basis AND their primary duty must meet specific criteria for each category.

Executive employees primarily manage a department or enterprise, direct 2+ employees, and have authority over hiring/firing. Administrative employees perform office work directly related to management or business operations and exercise discretion on significant matters. Professional employees hold advanced knowledge in a learned field acquired through a degree, or are employed in a creative/artistic role. Outside sales employees are also exempt.

If you perform non-exempt duties as a significant part of your role, the exemption may not apply even if you hold a job title that sounds senior. Misclassification is common — the DOL and state agencies actively investigate. Back pay for unpaid overtime can be recovered for up to 2 years (3 for willful violations), plus an equal amount as liquidated damages.