Aug 01, 2024

Who is Entitled to Overtime—and Who Isn't

Who is entitled to overtime, and who is expected to work extra hours as part of their salary? Read through for some insights into this thorny question.

 

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.

 ©2024


 

MORE RECENT NEWS…


Jan 15, 2026

Holidays + Vacation + Illness = Paid Time Off

Are you paying too much for paid time off? Read through to discover a way to cut PTO costs without cutting back on employee benefits.


Jan 14, 2026

IRS Gives Guidance on New Tax Benefits

The Department of the Treasury and the Internal Revenue Service are providing guidance on OBBBA-expanded Health Savings Account eligibility that allows more people to save and pay for healthcare costs. Read through for more details to help you file accurately.


Jan 13, 2026

Is This Your Situation: Sorting Out Payroll Categories

It's absolutely essential to distinguish between independent contractors and employees. The penalties for making a mistake here can be severe. Read through for a quick guide to make right.


Jan 12, 2026

IRS Announces Mileage Rate Changes

It's important and complex: the annual change notice for mileage rates for business. The rules can get confusing, and there are choices you need to make based on your situation. Read through for an overview of how the deduction rules work.


Dec 18, 2025

Bonus Depreciation Under the OBBBA

The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduced a significant change to business taxes by making it permanent for businesses to deduct 100% of the cost of certain assets in the year they are purchased. Read through for an introduction to what this means, why it matters and how it works.


Dec 17, 2025

The OBBBA: An Overview of Major Provisions

The One Big Beautiful Bill Act, recently signed into law, extends most of the Tax Cuts and Jobs Act’s provisions, adds new tax laws, and ends some tax provisions. The new rules are complex and controversial. Read through to see how they may affect you.




More News & Press can be found in our Archive.