Can i pay overtime to an exempt employee

The U. Department of Labor has issued new regulations for pay for exempt employees that will make more employees eligible for overtime. The terms "exempt" and "non-exempt" refer to job classifications of employees and the exemption of certain job classifications from overtime pay and minimum wage requirements.

Department of Labor, requires that all U. Employees who have certain types of jobs and who are paid a certain minimum salary are considered exempt from receiving overtime. The Fair Labor Standards Act FLSA states that employees employed as "bona fide executive, administrative, professional and outside sales employees" and "certain computer employees" may be considered exempt from both minimum wage and overtime pay.

These are sometimes called "white collar" exemptions. Being exempt from overtime includes:. The DOL also has specific types of employees who are considered to be exempt from both minimum wage requirements and overtime requirements and other types of employees who are exempt from overtime requirements only. Exempt employees must be paid for any week in which they do any work; they don't have to be paid for a week in which they didn't work.

Employers don't have to pay overtime to employees who are considered "Highly Compensated. In other words, mployees whose annual pay is less than this amount must receive overtime.

Employers can use commissions, nondiscretionary bonuses and other nondiscretionary compensation to make up the HCE designation. Many employers give exempt employees "comp time" or compensatory time off, in lieu of pay for extra time worked or travel time, For example, if an exempt employee must work a trade show over the weekend, the employer would give time off instead of paying overtime.

Non-exempt employees can't receive comp time because, under FLSA regulations, they must be paid at least minimum wage for all hours worked. Some state and local government employees may be eligible for comp time under certain conditions. You might also check with your state's labor department to see if they have different comp time regulations. You can use non-discretionary bonuses and incentive payments including commissions to satisfy up to 10 percent of the standard salary requirement.

To qualify as non-discretionary, the bonuses must be tied to some measures like productivity or sales or profitability. The bonuses must also be paid at least quarterly, not just at the end of the year. You can also make catch-up payments toward the previous quarter's salary. Compensating exempt employees as non-exempt by paying customary time-and-a-half pay can lead to a termination of the exemption and legal action against the employer. BTLG business lawyers provide legal services to a diverse array of businesses from small business and entrepreneurs, to local litigation counsel for public companies, in a variety of areas including: litigation, trial, corporate defense, administrative hearings, arbitration, mediation, contracts, collections, labor and employment law, intellectual property, software, computers, technology development transactions, government contracts, real estate, corporate law, business start-up and formation, and more.

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Skip Navigation. Enter Search Phrase. Talk to a lawyer Bold labels are required. The FLSA does not require extra pay for weekend or night work or double time pay. The overtime site contains helpful guidance materials, fact sheets, and e-tools and presentations that address overtime pay requirements.

Fact Sheets Consult these fact sheets for specific information about overtime pay for certain exempt employees and in your occupation. FAQ Contact Us.