I am salaried and called a manager: does that automatically remove overtime rights?

Salary and a manager title do not decide the answer

No. A salaried employee can still be entitled to overtime. Under the federal Fair Labor Standards Act (FLSA), a covered employee who is not exempt generally must receive at least 1.5 times the regular rate for work over 40 hours in a workweek. For the usual executive, administrative and professional exemptions, the employer must satisfy the relevant duties test and applicable salary requirements. A contract saying “exempt” does not establish that those tests are met. This article addresses the federal starting point; the state where you work may impose a higher salary threshold, stricter duties tests or additional overtime rights.

The current federal salary threshold

As checked on 5 October 2026, DOL states that it is enforcing the 2019 rule: the standard salary level is US$684 per week, equivalent to US$35,568 over 52 weeks. The 2024 rule that would have raised the level was vacated by a federal court on 15 November 2024. Do not use its US$844 or US$1,128 weekly levels as the current federal standard. Salary basis also matters: generally, the employee must receive a predetermined amount that is not reduced because of variations in the quality or quantity of work, subject to permitted deductions. Up to 10% of the standard level can be met by qualifying nondiscretionary bonuses or incentives paid annually or more often. Meeting the pay test still does not establish the duties test.

Compare the claimed exemption with your actual work

For the executive exemption, management must be your primary duty, you must customarily direct at least two full-time employees or their equivalent, and you must have hiring or firing authority or recommendations that carry particular weight. For the administrative exemption, the primary duty must be office or nonmanual work related to management or general business operations, with discretion and independent judgment on significant matters. A lead worker who mainly packs boxes is not exempt merely because they allocate tasks or have “manager” on a badge. Other exemptions differ: qualifying computer employees may meet a US$27.63 hourly alternative, and the outside-sales exemption has no salary requirement. Do not apply the US$684 test to every occupation.

Worked example: a US$150 overtime shortfall

Original hypothetical: a non-exempt warehouse lead receives US$800 each week under an agreement that expressly covers 40 straight-time hours. They work 45 compensable hours, have no bonuses or other regular-rate pay, and no special overtime arrangement applies. The regular rate is US$800 ÷ 40 = US$20. The five additional hours require 5 × US$20 × 1.5 = US$150. Total gross wages are US$950; if only the US$800 salary was paid, the shortfall is US$150. A salary above US$684 does not remove this debt if the duties test fails. This calculation is not the formula for every salary arrangement: a salary covering all fluctuating hours can require a different calculation if all legal conditions are met.

Keep a duties and pay file

Save your offer, salary agreement, payslips and the employer’s explanation of the exemption. For a representative period, record actual daily tasks and hours, who you direct, whether that is at least two full-time equivalents, and examples of hiring, discipline or business decisions you can genuinely make. Separate the written job description from what happens in practice. Note the employer’s fixed workweek; averaging a long week with a short week is generally not permitted under ordinary federal overtime rules. Keep your own lawful records without copying customer data or other employees’ private files.

A classification request you can adapt

“Please confirm the specific FLSA exemption applied to my role, the salary-basis and salary-level calculation, and the actual duties relied on. My records show [hours] hours in the workweek [dates], mainly spent on [tasks]. Please explain whether those hours require overtime and provide the calculation of any correction.” Attach a factual week-by-week comparison. This asks for the basis without claiming that every salaried worker is automatically entitled to overtime.

If the classification remains disputed

For a federal wage issue, contact DOL’s Wage and Hour Division (WHD) at 1-866-487-9243 or use its complaint intake process. Prepare the employer’s legal name and address, where you worked, duties, wage rates, dates and hours, and the amount you believe is unpaid. Ask for the complaint reference and preserve the documents submitted; WHD can investigate classification and wages. Its services are free and complaints are confidential. Federal back-wage claims generally have a two-year limitation, or three years for a willful violation; do not assume your case qualifies for three years or that an internal request extends the limit. Also check the responsible state labor agency for stronger state rights.

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