Being paid a salary does not automatically exclude you from overtime. Whether you get overtime depends on being exempt or non-exempt — and that turns on your duties and salary level, not on whether your pay is called a “salary.” Millions of salaried employees are non-exempt and legally owed time and a half.
Exempt vs. non-exempt
To be exempt (not owed overtime), an employee generally must meet both tests:
- Duties test — the actual job fits an exempt category: executive, administrative, professional, certain computer roles, or outside sales.
- Salary threshold — paid on a salary basis above the federal minimum (some states, like California, set a higher floor).
Fail either test and you are non-exempt — entitled to overtime, salary or not. A common misconception is that a salary or a manager title removes overtime rights; only the duties-plus-salary test does.
Converting salary to an hourly rate
For a non-exempt salaried worker, overtime starts by finding the regular rate:
Regular rate = weekly salary ÷ hours the salary covers (usually 40)
A $52,000 salary is $1,000/week. Divided by 40, the regular rate is $25/hour, so overtime is $37.50/hour. The salary overtime calculator does this conversion and the overtime in one step.
| Annual salary | Weekly (÷52) | Hourly (÷40) | Overtime rate |
|---|---|---|---|
| $41,600 | $800 | $20.00 | $30.00 |
| $52,000 | $1,000 | $25.00 | $37.50 |
| $62,400 | $1,200 | $30.00 | $45.00 |
A worked example
A non-exempt salaried employee earns $52,000 and works 45 hours one week:
- Regular rate: $1,000 ÷ 40 = $25/hour
- Salary covers 40 hours: $1,000
- Overtime: 5 × $37.50 = $187.50
- Total for the week: $1,187.50
The salary covers the first 40 hours; the 5 overtime hours are extra.
The fluctuating workweek (FWW)
Some employers use the FWW method: a fixed salary covers all hours worked, so the regular rate falls as hours rise, and overtime is paid at only 0.5× (a half-time premium, since straight time is already in the salary). It’s legal only with a clear mutual understanding and other conditions — and it produces lower overtime than the standard method, so check which one applies to you.
If you think you’re misclassified
Misclassification (treating a non-exempt worker as exempt to avoid overtime) is common. If your duties don’t match an exempt category, you may be owed back overtime. Keep your own hours record with the time card calculator, compare against your pay, and consult your state labor agency or the DOL.