08/27/2026
One of the biggest HR misconceptions is:
“They’re salaried, so they don’t get overtime.”
❌ Not necessarily
Being paid a salary does not automatically make an employee exempt from overtime.
To qualify as exempt, an employee generally must meet specific requirements related to:
✔️ Salady basis
✔️ Salary level
✔️ Job duties
Those requirements can vary depending on applicable federal and state laws.
Why it matters: Misclassifying an employee as exempt can lead to unpaid overtime, back wages, penalties, and other costly consequences for a business.