Blue-Collar Jobs and Overtime Pay: Know Your Legal Rights

Under the Fair Labor Standards Act (FLSA), a blue-collar worker is generally defined as someone who works in a physically demanding environment, such as building homes, repairing engines, or maintaining machinery. If you work in such an environment, the Fair Labor Standards Act says you’re still entitled to overtime pay. This law applies no matter how much experience you have or how much income you make.

In 2024, the U.S. Department of Labor introduced an updated rule that would increase the salary thresholds for employees who qualify as “exempt” from overtime. But in November, a federal court blocked that new rule. As a result, the DOL reverted to using the 2019 standards.

Here’s what the applicable regulation says:

Salaried employees must earn a minimum of $684 per week, which is not subject to deduction based on the amount or quality of work. Highly compensated workers should earn a minimum annual salary of $107,432. These rules apply only to white-collar jobs.

Now let’s discuss how this impacts blue-collar jobs.

White-Collar vs. Blue-Collar Jobs

The FLSA establishes wage and hour regulations for most jobs across the nation. But it does carve out some exemptions.

These are primarily for individuals in executive, administrative, professional, or sales roles, commonly referred to as white-collar jobs. These exemptions only apply if a worker passes certain job duty tests and earns the minimum salary mentioned above.

That’s where the line is drawn. If your work involves physical labor, regardless of your title or paycheck, you don’t qualify for the white-collar exemption.

White-Collar Jobs

White-collar workers are professionals who primarily perform mental or administrative work rather than physical labor. These roles typically require specialized knowledge, advanced training, or a formal education, often involving office-based or managerial responsibilities rather than hands-on work.

The work is non-manual, often analytical and/or supervisory.

Under federal labor laws, you're generally considered a white-collar worker if your primary responsibilities include:

• Managing multiple employees at your company or your company’s general business operations or a district department at your company
• Performing non-production line type work
• Making independent decisions regarding matters of significance in your job duties (note: all jobs require some independent decisions, so only ones regarding matters of significance will meet the standard)

For reference, here are some examples of common white-collar roles:

• Accountants and financial analysts
• Office managers and HR professionals
• Architects and designers
• C-level Executives, supervisors, and true administrators (as opposed to secretaries, assistants and clerks)

Many white-collar jobs may be properly classified as exempt from overtime under the Fair Labor Standards Act (FLSA), but often employers misclassify employees by using glorified job titles or because they have an office. Misclassification is common. Just because you have a salary, a title, or an office doesn’t automatically mean your employer can deny you overtime. If your job duties don’t meet the strict criteria for exemption, you may still be entitled to overtime pay and legal protections.

Blue-Collar Jobs

Blue-collar workers are individuals who utilize physical skills and energy to perform their jobs. Their training typically comes from hands-on experience, apprenticeships, or trade programs, rather than formal degrees or desk jobs.

The work is often repetitive, physically demanding, and requiring manual labor.

The FLSA considers you a blue-collar worker if your main tasks include things like:

• Building, fixing, or maintaining equipment
• Using tools and machinery
• Performing routine physical work
• Working in production, repair, or construction settings

For perspective, here are some job examples that fall under the blue-collar category:

• Carpenters and construction workers
• Electricians and plumbers
• Mechanics and HVAC techs
• Machine operators and welders
• Ironworkers and longshoremen
• Craftsmen and laborers in industrial jobs

These roles are not exempt from overtime, even if you make six figures. As long as your primary duties involve hands-on labor, you’re protected under the FLSA’s minimum wage and overtime rules.

High Earnings Don’t Cancel Out Overtime Rights

This is where confusion often arises in most workplaces. And if not handled properly, it usually leads to legal action.

Some employers might assume that a highly paid manual worker doesn’t qualify for overtime. But that’s not how it works.

The FLSA states that blue-collar employees must receive one and a half times their regular rate for any hours worked over 40 in a week. That’s regardless of their income level.

In other words, earning a bigger paycheck doesn’t mean you’ll lose your right to overtime if your work is physical.

Even if you supervise others from time to time, you won’t qualify for a white-collar exemption unless your primary duty is managing people, setting policies, or making high-level decisions, and you’re paid on a salary basis. For most tradespeople, that’s usually not the case.

Why Should You Care?

Being misclassified as exempt can mean missing out on hundreds or even thousands of dollars in overtime pay. And if that’s happening to you or your coworkers, it’s both unfair and illegal.

Employers need to classify workers correctly. If they don’t, they may face legal penalties. This includes, but is not limited to, paying back wages, interest, and additional fines.  

Worried About Your Overtime Pay? 

If you think your employer owes you overtime pay contact us for a free consultation today. Please get in touch with Morgan & Morgan today to learn how we can assist you.

This blog post is based on fact sheets from the U.S. Department of Labor and is for informational purposes only.