Do you think Salaried Employees should be paid Overtime?

Question

Hourly employees are paid by the hour, and get time and a half for hours worked over 8 per day.

When I was a salaried employee I was working up to 60 hours per week, sometimes travelling on company business for a 3 week stretch, and yet I never received a cent over my monthly 'salary'. Occassionally some paltry bonus, but it was entirely discretionary.

I believe that this law needs to be reviewed. There is nothing to stop a Company, and I worked for a few, to turn a salaried employee into basically a slave. In my company you were required to put in 8 hours, with special projects the hours could go late into the evening, the weekend, etc. It was ridiculous.

I believe that Corporate America knows they have a 'good thing'. But this form of compensation should stop. Every individual should be paid for every hour he or she works. Salaried employees have a life too.

Answer 1

It depends on the state. One reference:

In accordance with the FLSA, and except as hereinafter otherwise provided, no employer shall employ any employee longer than forty (40) hours in a workweek consisting of seven (7) consecutive twenty-four (24) hour periods unless such employee receives compensation for the employment in excess of forty (40) hours at a rate not less than one and one-half (1-1/2) times the employee's regular rate of pay.

Workweek: A workweek is a period of 168 hours during seven (7) consecutive 24-hour periods. It may begin on any day of the week and any hour of the day established by the employer. For the purpose of overtime payment, each workweek stands alone; there can be no averaging of two (2) or more workweeks.

Answer 2

Actually, some salaried employees do get paid overtime. I think you may be confusing exempt and non-exempt employees though. As an exempt employee you know that your work hours are not tied to your wage directly, and that you can be reasonably expected to work more than the standard 40 per week when you start the job. Still, if you think your employer is abusing your status consider speaking with you HR department, determine whether or not your position is classified correctly, and discuss bonus compensation options. Otherwise, you may want to consider a new employer.

Answer 3

I work for the State, and if you're below a certain salary, you receive overtime for pre-authorized work over 40 hours. If you're above that salary, you accumulate comp time, which is paid time off, on an hour-by-hour basis. There should be some rules about this. I don't think it should apply to the CEO who's making $250,000... but if someone's earning a $40,000 salary, I don't think an employer could argue that any degree of regular overtime is built into that salary.

Answer 4

Nope -- don't agree. Paying overtime will just encourage people to work more slowly to get extra money. I believe that the market will pay what people are worth.

You agreed to a salary. No one is forcing you to work at that company. If they feel that you are worth more, they will give you a raise. For example, when I worked on Wall Street, I put in crazy hours. That year, I was rewarded with a raise equal to half my salary and a bonus equal to 4/5 of my salary.

If your company is not rewarding your hard work -- move to another company that will -- or look to your own performance to see why you are not being rewarded.

Answer 5

The law states that a salaried employee who works more than their agreed upon time for that salary is due overtime pay. If your salary is based on 40 hrs/wk, you are due overtime over 40. If your salary is based on 60 hrs/wk, then you get paid overtime over 60. Also, your salary must equal out to be at least minimum wage/hour agreed upon. If your salary was based on 40 and you worked 60, you can file a greivance with the labor board. But you have to be able to prove the hours worked.

Answer 6

Exempt employees are not paid overtime. While most salaried employees are exempt employees, not all are. A non-exempt salaried employee would be paid overtime. Exempt employees are generally highly paid professionals like attorneys, physicians, engineers and middle and upper level business managers.

Answer 7

There is nothing wrong with suggesting a bonus on time or compensatory time. They won't think of it unless it is brought up.
For instance...for every 110 hours every two weeks worked...they bonus you $100 dollars ( or whatever they deem to be fair for the job you are doing). If anything...it is also an incentive for folks to put in the hours on salary instead of scooting out every possible chance they get.

Answer 8

I believe that Abercrombie and Fitch employees sued over this issue. I think the court ruled that it depands on how much your salarly is. If your only on a 40-50K yearly income then yes you should be compensated, but if your salarly is 250k+ no. That will give a research starting point anyway.

Answer 9

While I agree with you that everyone needs to be paid for every hour they work, are you willing to make less money than you do now. There is no way the big boss is going to give up more money, it is all about his bottom line, not yours.

Answer 10

Yes unfortunately some jobs sound great but then they become your life. Imagine working as a politician on salary...your work never ends! Yuk. I'll take way less cash and way more life thank you!