What Every Employee and Employer Should Know
When people hear “salaried employee,” they often assume those workers are exempt from typical labor laws—no overtime, no rest breaks, and unlimited work hours. But is that really the case? Are there labor laws for salaried employees? The answer is yes—but with some important caveats.
In this article, we’ll break down how labor laws apply to salaried workers, the key differences between exempt and non-exempt employees, and what rights salaried employees are entitled to under U.S. law.
Understanding Salaried Employment
What Does “Salaried” Mean?
A salaried employee is typically paid a fixed amount each pay period, regardless of the number of hours worked. This contrasts with hourly employees, who are paid based on the hours they clock in.
However, being paid a salary doesn’t automatically mean you’re exempt from labor laws. That’s where the Fair Labor Standards Act (FLSA) comes in.
The Role of the Fair Labor Standards Act (FLSA)
The FLSA is the federal law that sets standards for minimum wage, overtime pay, recordkeeping, and youth employment. It applies to both salaried and hourly employees—but how it applies depends on your job classification.
Exempt vs. Non-Exempt: The Game-Changer
The FLSA divides employees into two categories:
- Exempt Employees: Not entitled to overtime pay.
- Non-Exempt Employees: Eligible for overtime (1.5x the regular rate) for hours worked over 40 in a week.
So, yes, salaried employees can still be non-exempt, and therefore protected by overtime rules.
How to Determine Exempt or Non-Exempt Status
Key Factors That Determine Exemption
To be exempt, a salaried employee must meet all three of these criteria:
- Be paid on a salary basis (not hourly).
- Earn at least $684 per week (as of 2024).
- Perform exempt job duties, such as executive, administrative, or professional tasks.
Failing to meet any of these can result in non-exempt status, even if you’re salaried.
Examples of Exempt Roles
- Executives: Supervises other employees and has authority over hiring/firing.
- Administrative professionals: Perform office or non-manual work related to business operations.
- Learned professionals: Require advanced knowledge in science or education (e.g., doctors, lawyers).
Common Labor Protections for Salaried Employees
Just because you’re salaried doesn’t mean you’re not entitled to certain rights. Here are a few that still apply:
1. Minimum Wage Laws
Even salaried employees must earn at least the federal or state minimum wage when broken down hourly.
2. Overtime Pay (If Non-Exempt)
Non-exempt salaried employees are entitled to overtime—yes, even if they’re paid a fixed salary.
💡 Example: If you’re salaried at $700/week and work 50 hours, your effective hourly rate is $17.50. You’d earn 1.5x that ($26.25) for the 10 overtime hours.
3. Meal and Rest Breaks
Many states have laws requiring meal and rest breaks regardless of exempt status. These vary by location but are especially common in California, Oregon, and Washington.
4. Safe Working Conditions
All employees—salaried or not—are protected by OSHA regulations for workplace safety.
Misconceptions About Salaried Employees
Myth: Salaried Workers Can Be Required to Work Unlimited Hours
Truth: Exempt employees may be expected to work more than 40 hours, but there are still boundaries. Excessive workloads can raise legal or ethical concerns, and some states regulate this more tightly.
Myth: Salaried = No Time Tracking
Truth: Employers can require salaried employees to track time, especially if they’re non-exempt.
Myth: Employers Can Deduct Pay Freely
Truth: Employers cannot deduct pay from exempt salaried employees for partial-day absences (unless under specific conditions like unpaid leave or disciplinary suspensions).
State Labor Laws: Even Stricter in Some Areas
Federal law is the baseline—but states can impose stricter labor laws. For example:
- California: Has higher salary thresholds for exempt status and strict overtime rules.
- New York: Requires even higher minimum weekly salaries for exemption.
Always check with your state labor department to understand your specific protections.
What to Do If You Think Your Rights Are Being Violated
If you’re unsure whether you’re properly classified or your rights are being ignored:
- Review your job description and actual duties.
- Track your hours to identify unpaid overtime.
- Speak with HR or management for clarification.
- Contact your state’s Department of Labor or consult an employment lawyer if needed.
Conclusion: Know Your Rights as a Salaried Employee
So, are there labor laws for salaried employees? Absolutely. Whether you’re exempt or non-exempt, federal and state laws offer critical protections—from overtime pay to safe working conditions.
Don’t let a salary label fool you. If you’re salaried, it’s worth checking whether you’re also entitled to overtime, rest breaks, and fair compensation.
Andre Cuevas provides career insights, job search strategies, and professional advice to help individuals navigate the job market and achieve their career goals.
