Aug 01, 2024
When it comes to determining who is exempt from overtime pay and who isn't, federal law generally maintains that managers who earn above a specific amount should be exempt, while other workers who have no powers and responsibilities when it comes to the ability of hiring or firing other employees can receive overtime payments regularly.
However, it is important to note that the title of manager in itself is not enough to exempt an employee from overtime payments, and should any employees notice their duties have changed, they may be able to file a claim for being eligible to receive overtime payments.
Are Managers Always Managers?
The main discrepancy has to do with companies where managers are forced – either due to shortness of staff, or insufficiently skilled employees – to perform the same tasks as the workers they have to oversee.
In this case, managers are not "just" managers, as their duties extend beyond the role of training and overseeing other employees, and they may be eligible for overtime payments under certain circumstances.
One of the main factors that would influence whether or not a manager might be entitled to being paid up to one and a half or even two times more per hour for overtime work is the prospect of spending more than 50% of the time reserved to their normal duties performing tasks that are geared toward regular employees.
The Income Rule
Another important rule has to do with the amount of money a manager earns per year. The idea is that an employee can only be considered to have managerial status, if he/she earns more than the federal threshold.
If the amount earned is smaller, the employee may be entitled to file a claim and request overtime payments to be provided for the hours they work extra, whether their job label is "manager" or not. There may be state rules as well.
This is just a summary of some very complicated and extensive rules. Always work with a qualified financial professional before making overtime decisions.
Sep 25, 2025
The Social Security Fairness Act repeals two long-standing rules that reduced Social Security benefits for many government and public sector workers. Read through to learn more about the act and whether these changes affect you.
Sep 24, 2025
Congratulations! You've finally completed the demanding hiring process and you've made the right hire. You are now ready to welcome a new member to the team. Read through for some pro tips on best onboarding practices for the first day at work and beyond.
Sep 23, 2025
Are you curious about the idea of a streamlined payroll process? It's a great way to make sure your entire payroll department is on the same page and operating with the same standards in mind. Read through for insights into the best payroll practices.
Sep 22, 2025
When reimbursing employees for work-related expenses, are you using an accountable plan or a nonaccountable one? The difference affects how you report the payments and how your employee is taxed. Read through to learn the IRS rules and how to stay compliant.
Aug 29, 2025
Once, employees approaching retirement age could look forward to a long, relaxing post-work life. For much of the 55+ crowd, this is no longer the case, with many forestalling retirement for as long as possible. Read through for advice on employing silver workers in your organization.
Aug 28, 2025
For any company to treat their employees with respect and fairness, it needs to have a transparent pay equity policy in place that is shared with all employees. Read through to understand why creating pay equity is beneficial to your organization.
More News & Press can be found in our Archive.
