Am I Exempt From Overtime?

When payday rolls around, most workers expect to be compensated for every hour they’ve worked—including time spent working beyond the standard 40-hour workweek. But for millions of employees across the U.S., the answer to whether they’re entitled to overtime pay isn’t so simple. 

The Fair Labor Standards Act (FLSA) sets the rules for who does and doesn’t qualify for overtime, and understanding whether you fall into an exempt or non-exempt category can make a significant difference in your take-home pay.

At Morgan & Morgan, we believe every worker deserves to be paid fairly. If your employer has misclassified your position as "exempt" when it shouldn't be—or if you’ve been denied overtime you rightfully earned—you may be entitled to compensation. 

Contact us today for a free, fast, and easy case evaluation to learn more about your legal options.

What Does “Exempt” From Overtime Mean?

The term “exempt” refers to employees who are not entitled to overtime pay under the Fair Labor Standards Act. This means that if you work more than 40 hours in a single workweek, your employer is not legally required to pay you 1.5 times your regular hourly wage. That is, if you’re correctly classified as exempt.

On the flip side, non-exempt employees are protected by federal overtime laws. If you are non-exempt, and you work more than 40 hours in a week, your employer must pay you overtime, no matter your job title or salary.

Who Is Exempt From Overtime?

The FLSA outlines several job classifications that are typically considered exempt. These include:

Executive Exemption

To qualify for this exemption, your primary duty must be managing the business or a department/subdivision of the business. You must regularly direct the work of at least two full-time employees and have the authority to hire or fire employees (or have significant influence in those decisions).

Administrative Exemption

Your primary duties must involve office or non-manual work directly related to the management or general business operations of the employer. You must also have the ability to use discretion and independent judgment on significant matters.

Professional Exemption

This includes “learned professionals” such as doctors, lawyers, engineers, and accountants who perform work requiring advanced knowledge, typically acquired through prolonged education. It also includes “creative professionals,” such as writers, musicians, and actors whose work involves invention, imagination, or talent.

Computer Employee Exemption

Applies to workers employed as systems analysts, software engineers, or similar roles. These employees must be paid at least $684 per week on a salary basis or $27.63 per hour if hourly.

Outside Sales Exemption

If your primary duty is making sales or obtaining orders/contracts for services, and you regularly work away from your employer’s place of business, you may fall under this exemption.

Salary Threshold: It’s Not Just About Job Duties

In addition to meeting job duty requirements, most exempt employees must also meet a minimum salary threshold. As of 2024, the U.S. Department of Labor requires that most exempt workers earn at least $684 per week, or $35,568 annually.

That said, there are exceptions. For instance, outside sales employees do not need to meet the salary threshold to be exempt, and certain highly compensated employees (HCEs) earning more than $107,432 annually may qualify for exemption under a relaxed set of criteria.

What to Watch Out For: Common Misclassifications by Employers

Unfortunately, some employers misclassify employees as exempt from overtime pay—either accidentally or intentionally—to avoid paying overtime. Here are a few ways that can happen:

Job Titles Without Duties to Match

Having “Manager” in your title doesn’t automatically make you exempt. The actual duties you perform are what determine your exemption status—not your job title.

Paying a Salary Instead of Hourly

Being on a salary does not mean you're automatically exempt. You must meet both the salary basis and job duties test to qualify.

Misuse of the Independent Contractor Label

Some employers wrongly classify workers as independent contractors when they function like regular employees. Independent contractors are not entitled to overtime, but if your work is controlled by the company, you may be misclassified. Independent contractor misclassification is one of the most frequently used tactics to cheat workers out of legally-deserved wages.

Automatic Deductions for Breaks

Employers may automatically deduct breaks from your hours, even if you work through them. This could push your actual hours worked beyond 40, entitling you to overtime.

If any of these situations sound familiar, it may be time to speak to an employment attorney.

How Do I Know if I’m Exempt or Non-Exempt?

It’s not always easy to figure out your status on your own, but here are a few key questions to ask yourself:

How are you paid?

If you are paid hourly, you are most likely non-exempt and entitled to overtime pay.

If you are paid with a salary, you could be exempt or non-exempt depending on job duties and pay level.

 

What are your main job duties?

Do you manage others, make high-level decisions, or require advanced degrees or certifications to do your work?

 

Do you earn at least $684 per week on a consistent basis?

If not, you’re likely non-exempt.

 

Do you work in sales, tech, or a creative field?

These roles are more likely to be exempt, but only if the specific duties align with FLSA standards.

 

Do you have discretion and independent judgment?

Making decisions on behalf of your company (not just following a checklist) often qualifies you for exemption.

Still unsure? You’re not alone. The FLSA exemptions are complex, and even HR departments sometimes get them wrong. An employment lawyer at Morgan & Morgan can help you clarify your status and explore your legal options if you’ve been misclassified.

What Happens if I’ve Been Misclassified?

If your employer wrongly classified you as exempt and failed to pay overtime, you may be owed significant back pay—sometimes going back up to three years. You may also be entitled to liquidated damages (essentially double damages), and your employer could be on the hook for your attorney’s fees.

Morgan & Morgan has helped countless workers recover what they’re rightfully owed. Our legal team can evaluate your job description, employment contract, and time records to determine whether you’ve been shortchanged—and we don’t charge unless we win.

What Should I Do If I Think I’ve Been Wrongly Denied Overtime?

If you suspect that you were wrongly classified as exempt from overtime and have missed out on wages you are owed, take the following steps:

Review Your Job Description

Compare your listed duties to what you actually do each day. Are you truly managing people or making strategic decisions?

 

Track Your Hours

Keep a detailed log of when you start and stop working—including meal breaks, after-hours emails, and weekend shifts.

 

Ask HR or Payroll for Clarification

Your HR department should be able to tell you your exemption status and explain how it was determined.

 

Contact a Labor Attorney at Morgan & Morgan

Don’t wait. Wage and hour claims are subject to strict statutes of limitations. The sooner you speak with a lawyer, the stronger your case may be.

 

State Laws May Offer Additional Protections

While the FLSA sets the federal baseline, many states have their own overtime laws, and some offer more generous protections. For example:

• California requires overtime after 8 hours in a day, not just 40 hours per week.
• New York has a higher salary threshold for exemption, especially in New York City.
• Colorado requires certain manual laborers and service workers to be paid overtime even if they earn a salary.

If you're unsure whether your state law affects your classification, Morgan & Morgan can help you understand your rights in your specific location.

Why Employers Misclassify Workers

Some employers make honest mistakes when classifying employees, but in many cases, it's about saving money. By classifying a worker as exempt:

• They avoid paying overtime.
• They don’t have to track hours.
  They may get away with demanding more work without more pay.
   

This creates an unfair burden on workers, who are effectively working “off the clock.” That’s not just unfair—it’s illegal.

Your Rights Under the FLSA

Under the Fair Labor Standards Act, you are entitled to:

• Minimum wage
• Overtime pay (if non-exempt)
• Accurate record-keeping by your employer
• Protection from retaliation if you file a complaint or lawsuit

How Morgan & Morgan Can Help

At Morgan & Morgan, we have a dedicated team of employment law attorneys who specialize in wage and hour disputes. Whether you’re an individual worker or part of a group facing widespread misclassification, we’re here to stand up for your rights.

If you’ve been working overtime without proper compensation, it’s time to ask the big question: 

Am I truly exempt? 

Don’t rely on your job title, employer’s word, or the assumption that salaried equals exempt. The law is clear—and your rights matter.

You work hard. You deserve to be paid for every minute of it. 

If you’ve been denied rightful overtime or misclassified as an exempt employee, contact Morgan & Morgan today for a fast, free, and easy case evaluation.