Do salaried employees get overtime pay?

Yes — many salaried employees are legally entitled to overtime pay, and the determining factor is not whether you receive a salary but whether you are classified as exempt or non-exempt under the Fair Labor Standards Act. The FLSA creates two categories. Non-exempt salaried employees: entitled to 1.5× overtime for all hours worked beyond 40 in a workweek. This category includes any salaried worker who either earns below the federal salary threshold ($684/week / $35,568/year) OR whose actual job duties do not satisfy one of the five white-collar exemption tests — regardless of how their employer has labeled their position. Exempt salaried employees: not entitled to FLSA overtime. This requires satisfying both a salary threshold test and a qualifying duties test simultaneously. If either prong fails, the employee is non-exempt. The most common misconception: job title does not determine exempt status. A worker titled 'Manager' who earns $32,000/year and does not direct two employees fails both prongs and is fully non-exempt.

What is the FLSA salary threshold for overtime exemption in 2026?

The federal FLSA salary threshold for overtime exemption under 29 CFR Part 541 is $684 per week ($35,568 per year) on a salary basis. Employees earning below this threshold are automatically non-exempt and entitled to overtime pay regardless of their job duties or title — the duties test is irrelevant for sub-threshold earners. The salary must be paid on a salary basis: a fixed predetermined amount that is not reduced because of variations in the quality or quantity of work performed. Employers who dock salary for partial-day absences, send workers home early and reduce their pay, or make deductions based on the number of hours worked risk destroying the salary basis and converting the employee to non-exempt status for the affected pay period. A separate Highly Compensated Employee (HCE) threshold applies at $107,432/year — workers above this level need only customarily and regularly perform at least one exempt duty to qualify, rather than satisfying the full duties test. California applies a significantly higher exempt threshold: $70,304/year ($1,352/week) as of 2026 — a salaried employee earning $60,000/year is exempt under federal law (if duties qualify) but non-exempt under California law.

How is overtime calculated for a salaried non-exempt employee?

Standard method (most common): Step 1 — convert annual salary to an hourly equivalent. Hourly Rate = Annual Salary / 52 weeks / 40 hours per week. Step 2 — compute overtime rate: Hourly Rate × 1.5. Step 3 — compute overtime pay: Overtime Rate × Overtime Hours. Step 4 — compute total weekly pay: (Hourly Rate × 40) + Overtime Pay. Worked example — David earns $52,000/year and works 48 hours in a week. Hourly rate = $52,000 / 52 / 40 = $25.00/hr. Regular pay = $25 × 40 = $1,000. Overtime rate = $25 × 1.5 = $37.50/hr. Overtime pay = $37.50 × 8 overtime hours = $300. Total weekly pay = $1,300. Salary conversion reference: $31,200/year = $15/hr ($22.50 OT); $41,600/year = $20/hr ($30 OT); $52,000/year = $25/hr ($37.50 OT); $58,656/year = $28.20/hr ($42.30 OT). The key input is always the derived hourly rate — the salary itself is never multiplied directly by 1.5.

What is the fluctuating workweek method and how does it differ from the standard method?

The fluctuating workweek (FWW) method is an alternative FLSA-compliant overtime calculation that produces a lower overtime premium than the standard method, available only when specific conditions are met. Under FWW: the employer and employee must have a clear mutual understanding, documented in writing, that the fixed weekly salary compensates for all hours worked regardless of the number. The weekly salary pays the 1.0× base for all hours — both regular and overtime. The employer then owes only an additional 0.5× premium for overtime hours (not the full 1.5×, because the 1.0× base is already covered by the salary). Formula: Regular Rate = Weekly Salary / Total Hours Worked That Week. Additional OT Premium = Regular Rate × 0.5 × Overtime Hours. Example — employee earns $800/week salary, works 50 hours. Regular rate = $800 / 50 = $16.00/hr. OT premium = $16 × 0.5 × 10 = $80. Total pay = $800 + $80 = $880. Same employee under the standard method: $800/40 = $20/hr rate. OT = $20 × 1.5 × 10 = $300. Total = $1,100. The FWW produces $880 vs $1,100 standard — a $220 difference. Key FWW requirements: hours must genuinely fluctuate week to week; the method cannot be applied if hours are constant every week; the salary must be paid in full for any week in which work is performed regardless of hours; and employees must actually work fewer hours some weeks than others.

What are the five FLSA white-collar exemption categories for salaried workers?

The five white-collar exemptions under FLSA 29 CFR Part 541, each requiring the $684/week salary threshold plus qualifying duties: Executive exemption: employee's primary duty must be managing a recognized department or subdivision; must customarily and regularly direct the work of at least two full-time employees (or equivalent); and must have the authority to hire, fire, or make recommendations on hiring, firing, promotion, or advancement that carry particular weight. Administrative exemption: primary duty must be office or non-manual work directly related to the management or general business operations of the employer or its customers; and must exercise discretion and independent judgment with respect to matters of significance — not just routine clerical tasks. Professional exemption: primary duty must require advanced knowledge in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction (licensed professions, CPAs, engineers, teachers, doctors). Alternatively covers creative professionals whose work requires invention, imagination, originality, or talent. Computer employee exemption: primary duty must be application of systems analysis, computer programming, software engineering, or design of computer systems — and must earn either $684/week salary or $27.63/hour. Outside sales exemption: primary duty must be making sales away from the employer's place of business — no minimum salary requirement applies. A sixth category applies to Highly Compensated Employees (HCE): $107,432/year total annual compensation including at least $684/week salary, and must customarily and regularly perform at least one of the exempt executive, administrative, or professional duties.

Can my employer label me 'exempt' just because I earn a salary?

No. Receiving a salary does not automatically grant exempt status under the FLSA. Both the salary threshold AND the duties test must be satisfied simultaneously. An employer who labels a salaried employee as exempt while that employee fails either prong is misclassifying the worker — a federal wage violation that exposes the employer to back wages, liquidated damages, and attorney fees. Common misclassification scenarios: a salaried worker earning $45,000/year (above the $35,568 federal threshold) who is titled 'Supervisor' but does not actually manage two employees and has no meaningful input into hiring or firing decisions — this worker fails the duties test and is non-exempt. A salaried worker earning $30,000/year (below the $35,568 threshold) with genuinely managerial duties — this worker fails the salary threshold test and is non-exempt regardless of actual duties. A misclassified worker can recover up to two years of back overtime wages plus an equal amount in liquidated damages (effectively doubling the recovery) by filing a complaint with the Department of Labor Wage and Hour Division at no cost. If the misclassification was willful, the lookback extends to three years.

Does the OBBBA no-tax overtime deduction apply to salaried non-exempt workers?

Yes — salaried non-exempt workers who receive FLSA-mandated overtime pay may qualify for the OBBBA federal income tax deduction on their overtime premium, subject to the same eligibility requirements that apply to hourly workers. The qualifying amount is the FLSA overtime premium: Regular Rate × 0.5 × Overtime Hours (the extra half-time above the base rate that the FLSA mandates for hours over 40). This amount — not the full overtime pay — is the potentially deductible premium. Eligibility checklist for salaried non-exempt workers: must be a W-2 employee; must be FLSA non-exempt (salary below $684/week OR duties test not satisfied); must receive overtime pay for FLSA-mandated hours over 40 in a workweek; MAGI must be below $150,000 if single or $300,000 if married filing jointly for the full deduction. Deduction caps: $12,500 single / $25,000 MFJ for tax years 2025–2028. Exempt salaried employees who receive no FLSA overtime pay do not qualify — they have no FLSA overtime premium to deduct. For salaried workers using the fluctuating workweek method, the qualifying premium is the 0.5× FWW premium amount actually earned, subject to the same cap and MAGI phase-out.

How does California's exempt salary threshold differ from the federal threshold?

California sets a significantly higher exempt salary threshold than the federal FLSA standard, creating a category of workers who are exempt federally but non-exempt under California law. Federal FLSA threshold: $684/week ($35,568/year). California 2026 threshold: $1,352/week ($70,304/year) per California Labor Code §515 — exactly twice the 2026 California statewide minimum wage of $16.90/hr at 40 hours per week. A salaried worker earning $55,000/year is above the federal threshold and may qualify as exempt federally (if duties test is met), but is automatically non-exempt under California law regardless of duties — California's threshold is nearly double the federal level. California also applies its own independent duties tests under the Industrial Welfare Commission Wage Orders, which are in some respects stricter than federal standards. For California-based salaried workers, the higher state threshold governs: if the salary is below $70,304/year, all four California overtime triggers apply (daily OT after 8 hours, double time after 12 hours, 7th-day rules) in addition to the federal 40-hour threshold.

What is the salary basis requirement and how can employers accidentally destroy it?

The salary basis requirement under FLSA 29 CFR §541.602 means the employee must receive a fixed predetermined salary each pay period that is not subject to reduction because of variations in the quality or quantity of work performed. The salary must be paid in full for any week in which the employee performs any work, regardless of the number of days or hours worked. Employers can inadvertently destroy the salary basis — and convert an employee from exempt to non-exempt — by making improper deductions. Examples of improper deductions that destroy salary basis: docking pay when an exempt employee leaves work early on a partial day; reducing salary when business is slow and hours are cut; making deductions for full-day absences for personal reasons if the employer has no bona fide leave plan; imposing safety violation fines by deducting from salary. Safe Harbor Rule: an employer who has a written policy prohibiting improper deductions and reimburses any improper deduction promptly upon complaint can use the FLSA safe harbor to preserve the salary basis for the affected period. The safe harbor does not apply if the employer willfully or repeatedly made the improper deductions. Permitted deductions that do not destroy salary basis include full-week absences for personal reasons, FMLA-qualifying leave taken in partial-day increments, and deductions for penalties imposed in good faith for infractions of major safety rules.

How do non-discretionary bonuses affect overtime pay for salaried non-exempt workers?

Non-discretionary bonuses — bonuses promised in advance, tied to production, attendance, efficiency, or any other metric where the employee has a reasonable expectation of payment — must be included in the regular rate of pay before overtime is calculated for salaried non-exempt workers. Formula: Regular Rate = (Weekly Salary + Non-Discretionary Bonus) / Total Hours Worked. Overtime Pay = Regular Rate × 1.5 × Overtime Hours. Example: salaried non-exempt worker earning $800/week salary works 48 hours and receives a $120 attendance bonus. Total weekly compensation = $800 + $120 = $920. Regular rate = $920 / 48 = $19.17/hr. Overtime pay = $19.17 × 1.5 × 8 = $230. Total pay = $920 + $230 = $1,150. If the employer had calculated overtime using only the $800 salary ($800/40 = $20/hr → $20 × 1.5 × 8 = $240 OT), they would have paid $1,040 total — underpaying by $110. Discretionary bonuses — holiday gifts, purely discretionary management awards, or bonuses for which the employer retains complete discretion over whether to pay and in what amount until near the end of the period — are excluded from the regular rate calculation and do not increase the OT base.

HomeFinanceSalaried Overtime Calculator

Last updated: March 22, 2026

Salaried Overtime Calculator

Name: Salaried Overtime Calculator
Rating: 4.9 (318 reviews)
Author: Sohail Sultan

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Sohail Sultan
Finance Analyst

Being paid a salary does not automatically mean you are exempt from overtime. Millions of salaried workers qualify for overtime pay under federal law — and many are owed back pay they never claimed. For hourly and total pay breakdowns, use our overtime pay calculator.

Do Salaried Employees Get Overtime? (Quick Answer)

Yes — if they are non-exempt. The FLSA does not care whether you are paid hourly or on salary. What matters is whether you pass a three-part exemption test. If you fail any one of the three parts — salary basis, salary level, or duties test — your employer is legally required to pay you overtime at 1.5x your regular rate for every hour worked beyond 40 in a workweek. Salaried status alone is not a free pass.

Most salaried workers incorrectly assume their compensation structure exempts them. It does not. The FLSA’s overtime protections extend to any employee who does not meet all three exemption criteria simultaneously.

The FLSA 3-Part Exemption Test — Salary Basis, Salary Level & Duties

The FLSA’s white-collar exemptions (29 CFR Part 541) require employers to satisfy all three components of the exemption test before classifying any salaried worker as overtime-exempt. If even one part fails, the employee is non-exempt and entitled to overtime — regardless of title, responsibilities, or how the employer classifies the role internally.

Test 1 — Salary Basis: Paid a Fixed Predetermined Amount

An employee meets the salary basis test if they regularly receive a predetermined fixed amount that constitutes all or part of their compensation and that amount is not subject to reduction based on the quality or quantity of work performed. In plain language: if your employer can dock your pay for working fewer hours in a week, you may not be on a true salary basis.

Permissible deductions from salary exist — for full-day absences for personal reasons, for violations of major safety rules, or for unpaid disciplinary suspensions — but improper deductions can destroy the salary basis status and trigger retroactive overtime liability for the employer.

Test 2 — Salary Level: Current Federal Threshold ($35,568/yr — $684/week)

The salary level test sets the minimum weekly pay an exempt employee must receive. The current 2026 federal threshold is $684 per week, or $35,568 per year. Employees earning below this amount cannot be classified as exempt under the white-collar exemptions, regardless of their duties.

Note: Up to 10% of this threshold can be satisfied by non-discretionary bonuses and incentive payments (including commissions) paid at least annually. If the employee’s annual bonus reliably reaches that level, employers may use it to partially satisfy the salary level requirement.

Test 3 — Duties Test: Executive, Administrative, or Professional Role

Even at or above the salary threshold, the employee’s primary job duties must qualify under one of the three FLSA white-collar exemption categories:

Executive exemption: Primary duty is managing the enterprise or a department, regularly directing two or more employees, and having authority to hire, fire, or make recommendations that carry significant weight.
Administrative exemption: Primary duty includes office or non-manual work directly related to management or general business operations, and the employee exercises discretion and independent judgment on matters of significance.
Professional exemption: Primary duty requires advanced knowledge in a field of science or learning customarily acquired by prolonged specialized academic study, OR work that is predominantly original and creative in a recognized artistic field.

Many employees whose titles sound executive — team lead, coordinator, senior specialist — fail the duties test because their actual day-to-day work is routine rather than managerial or requiring independent judgment.

Failing Any One Test = Non-Exempt = Overtime Owed

All three parts must be satisfied simultaneously. A highly paid employee at $200,000/year whose job duties are purely clerical fails the duties test and is non-exempt. A manager earning $600/week who passes both the basis and duties tests fails the salary level test and is non-exempt. The FLSA provides no partial credit — it is all or nothing.

2026 Federal Exempt Salary Threshold — What Changed?

This is where enormous confusion exists in 2026. Millions of salaried workers — and even many HR professionals — believe the current federal threshold is $58,656 per year. It is not. Here is the accurate history.

The 2024 DOL Rule Raised to $58,656 — Then Courts Vacated It

In April 2024, the Department of Labor issued a final rule that increased the exempt salary threshold in two steps: from $684/week to $844/week ($43,888/year) effective July 1, 2024, then to $1,128/week ($58,656/year) effective January 1, 2025. The DOL estimated the rule would make approximately 4 million additional workers eligible for overtime.

In November 2024, the U.S. District Court for the Eastern District of Texas vacated the 2024 DOL salary rule in its entirety. The court ruled that the DOL had exceeded its statutory authority by setting the salary threshold so high that it effectively replaced the duties test. As a result, the rule never took full effect.

Current 2026 Threshold: $35,568/Year ($684/Week) Federal

Following the court’s vacatur, the federal exempt salary threshold reverted to the pre-2024 level: $684 per week ($35,568 per year), which had been established by the 2019 DOL rule under 29 CFR §541.600. This is the operative 2026 federal floor. Any salaried employee earning less than $684/week is non-exempt and entitled to overtime, regardless of job duties.

The practical impact: If you were reclassified as overtime-eligible in mid-2024 when the DOL rule partially took effect, and your employer reversed that reclassification after November 2024, that reversal was legally appropriate under federal law — though state law may set a higher bar.

State-by-State Salary Thresholds That Exceed Federal (CA, NY, WA, CO)

Several states set exempt salary thresholds that are substantially higher than the federal $35,568 floor. Employers in these states must comply with whichever threshold is higher — always the state level. The federal minimum is simply the floor, not the ceiling.

How to Calculate Overtime for a Non-Exempt Salaried Employee

Once you have confirmed that a salaried employee is non-exempt, the overtime calculation follows a three-step process. The FLSA’s default method converts the fixed salary to an equivalent hourly rate, then applies the 1.5x multiplier to hours over 40.

Step 1 — Convert Salary to Hourly Rate (÷ 52 ÷ 40)

Divide the annual salary by 52 (weeks per year) to get the weekly salary, then divide by 40 (the standard workweek) to get the equivalent hourly rate.

Formula: Hourly rate = Annual salary ÷ 52 ÷ 40

Example: $45,000 ÷ 52 = $865.38/week. $865.38 ÷ 40 = $21.63/hour.

Step 2 — Calculate 1.5x Overtime Rate

Multiply the derived hourly rate by 1.5 to get the overtime rate. For $21.63/hr: $21.63 x 1.5 = $32.44/hr overtime rate. Use our time and a half calculator to get your exact 1.5x rate instantly.

Step 3 — Calculate Overtime Pay + Add to Regular Weekly Salary

Multiply the overtime rate by the number of overtime hours (hours beyond 40), then add the result to the employee’s regular weekly salary.

Formula: Total weekly pay = Regular weekly salary + (Overtime rate x OT hours)

Example — $45,000 Salaried Worker, 48 Hours in One Week

Annual salary: $45,000

Step 1: $45,000 ÷ 52 = $865.38 weekly salary. $865.38 ÷ 40 = $21.63/hr regular rate.
Step 2: $21.63 x 1.5 = $32.44/hr overtime rate.
Step 3: 48 hours worked. OT hours = 8. OT pay = $32.44 x 8 = $259.52.
Total weekly pay: $865.38 + $259.52 = $1,124.90.

Without overtime, this employee would have received only $865.38. The additional 8 hours of overtime add $259.52 — a 30% increase in weekly earnings. For an employee who regularly works 48 hours, that compounds to over $13,000 in additional annual pay they may be owed if their employer has been misclassifying them as exempt.

Fluctuating Workweek Method — What It Is and When It Applies

The fluctuating workweek (FWW) method — authorized under 29 CFR §778.114 — is an alternative overtime calculation approach that applies in specific circumstances. Under FWW, a salaried non-exempt employee receives a fixed salary intended to cover all hours worked in a week (however many), and overtime is then calculated at just 0.5x the regular rate (rather than 1.5x).

This is not a loophole — it is a specific FLSA provision with strict requirements:

The employee must work genuinely fluctuating hours from week to week — not a consistent schedule.
The employee must receive a fixed salary that does not vary based on the number of hours worked.
The fixed salary must be sufficient to ensure at least minimum wage for all hours worked in the highest-hour week.
The employer and employee must have a clear mutual understanding that the salary covers all hours worked.

Under FWW, as hours increase, the effective hourly rate decreases because the same fixed salary is divided across more hours. The employer then pays only a 0.5x half-time premium for overtime hours rather than the standard 1.5x.

Example: An employee receives a $700/week fixed salary and works 50 hours. Regular rate = $700 ÷ 50 = $14.00/hr. OT premium = $14.00 x 0.5 x 10 hours = $70. Total pay = $700 + $70 = $770. Under the standard method, the same employee would earn $700 + ($17.50 x 1.5 x 10) = $962.50.

The FWW method significantly benefits employers in high-overtime situations. Courts have upheld its use, but any deviation from the strict requirements — such as docking the salary for slow weeks — invalidates the FWW agreement and triggers standard OT liability.

Does the OBBBA No-Tax Deduction Apply to Salaried Workers?

The One Big Beautiful Budget Act (P.L. 119-21) created a federal income tax deduction for overtime premium pay starting in 2025. Whether it applies to you as a salaried worker depends entirely on your exemption status.

Exempt Employees — No FLSA Overtime, No OBBBA Deduction

If you are a properly classified exempt salaried employee, you do not receive FLSA overtime pay. You may work 50 or 60 hours per week, but your employer has no legal obligation to pay a premium for those hours. Because you receive no FLSA overtime premium, there is no overtime premium to deduct under the OBBBA. The deduction simply does not apply to exempt employees.

Non-Exempt Salaried Employees — Yes, OBBBA Applies to the Overtime Premium

If you are a salaried non-exempt employee who earns overtime under the FLSA, the OBBBA deduction applies to your overtime premium — the extra 0.5x portion of your 1.5x overtime rate. This is the same premium that would be deductible for an hourly worker. The base hourly equivalent of your salary is not deductible — only the overtime premium on top of regular pay qualifies. If you qualify, calculate your exact deduction with our no tax on overtime calculator.

Under the FWW method, the overtime premium is calculated at 0.5x — the OBBBA deduction would apply only to that reduced 0.5x premium, not a full 1.5x equivalent. Employees using the standard overtime method receive a larger deductible premium than those on FWW agreements.

State Salary Thresholds 2026 — Where State Law Exceeds Federal

Federal law sets the floor. State law can — and in several major states does — set significantly higher exempt salary thresholds. Employers must comply with whichever is higher. Here are the key state thresholds for 2026:

State	2026 Weekly Threshold	2026 Annual Threshold	Notes
Federal	$684/week	$35,568/year	Post-vacatur floor
California	$1,352/week	$70,304/year	2x state minimum wage
New York (NYC)	$1,200/week	$62,400/year	Higher for NYC area
Washington	$1,302/week	$67,724/year	Updates annually
Colorado	$1,112/week	$57,805/year	COMPS Order applies

A California employer, for example, must use the $70,304/year threshold — not the $35,568 federal floor. An employee in California earning $50,000/year is non-exempt under California law even if they would be exempt under federal standards. They are entitled to California overtime (daily and weekly), calculated from their salary-derived regular rate.

Related Overtime Calculators

Depending on your pay structure and state, these tools can help you calculate your exact overtime earnings:

Overtime Pay Calculator — Federal overtime for hourly and salaried workers. Covers FLSA weekly thresholds and take-home pay.
Time and a Half Calculator — Instantly calculates your 1.5x overtime rate from any base hourly or derived salary rate.
California Overtime Calculator — Covers all four California overtime triggers including daily OT, double time, and 7th-day rules.
No Tax on Overtime Calculator — Calculates your OBBBA deduction for qualifying FLSA overtime premiums.
Double Time Pay Calculator — Computes 2x earnings for California double time and other premium pay situations.

Frequently Asked Questions — Salaried Overtime 2026

Do salaried employees qualify for overtime pay in 2026?

Yes — if they are non-exempt under the FLSA. Salary status alone does not determine overtime eligibility. An employee must pass all three parts of the FLSA exemption test (salary basis, salary level, and duties test) to be exempt. Failing any one part means the employer owes overtime for hours worked beyond 40 in any workweek.

What is the FLSA exempt salary threshold in 2026?

The current 2026 federal exempt salary threshold is $684 per week ($35,568 per year). The DOL’s 2024 rule that would have raised it to $1,128/week ($58,656/year) was vacated by a federal court in November 2024. The pre-2024 threshold remains the operative federal standard. Some states, including California, New York, and Washington, set higher thresholds.

How do I calculate overtime pay if I am a salaried non-exempt employee?

Divide your annual salary by 52 weeks, then by 40 hours to get your regular hourly rate. Multiply that rate by 1.5 to get your overtime rate. Multiply the overtime rate by the number of hours worked beyond 40. Add that overtime pay to your regular weekly salary. Example: $45,000 salary, 48 hours worked = $21.63/hr regular, $32.44/hr OT, total weekly pay of $1,124.90.

My salary is $45,000 — am I entitled to overtime?

Possibly. At $45,000/year ($865.38/week), you are above the federal exempt threshold of $35,568, but that alone does not make you exempt. You must also pass the salary basis test and the duties test. If your job duties are routine rather than genuinely executive, administrative, or professional, you may still be non-exempt and entitled to overtime regardless of your salary level.

What is the fluctuating workweek method for salaried overtime?

The fluctuating workweek (FWW) method allows employers to pay non-exempt salaried employees overtime at only 0.5x (instead of 1.5x) when hours genuinely fluctuate week to week and both parties agree the salary covers all hours. It requires a fixed salary regardless of hours worked, must clear minimum wage in all weeks, and strict compliance with 29 CFR §778.114. It significantly reduces overtime costs for employers.

Does the OBBBA no-tax overtime deduction apply to salaried workers?

Only for non-exempt salaried employees who receive FLSA overtime pay. Exempt salaried employees receive no FLSA overtime premium, so there is nothing to deduct under the OBBBA (P.L. 119-21). Non-exempt salaried workers who earn weekly overtime can deduct the premium portion (the extra 0.5x of their 1.5x rate) from federal income tax, subject to the OBBBA’s income phase-out limits.

What is the duties test for FLSA overtime exemption?

The duties test requires that the employee’s primary job function falls under executive, administrative, or professional categories. Executive: manages a department and directs two or more employees. Administrative: performs office work with discretion on matters of significance. Professional: requires advanced knowledge from specialized academic study or involves original creative work. Job title is irrelevant — actual daily duties control the analysis.

Can my employer avoid paying overtime by making me salaried?

No. Reclassifying an hourly worker as salaried does not eliminate overtime obligations if the employee does not meet all three FLSA exemption tests. Misclassification is one of the most litigated wage and hour violations under the FLSA. Employers found to have willfully misclassified employees can owe up to three years of back overtime pay plus liquidated damages and attorneys’ fees.

About This Calculator

The IntelCalculator Salaried Overtime Calculator is based on the Fair Labor Standards Act (FLSA, 29 U.S.C. §207 and §213), DOL Wage and Hour Division regulations (29 CFR Part 541), and current 2026 federal and state salary thresholds. The current federal exempt salary threshold is $35,568/year ($684/week) following the November 2024 vacatur of the DOL’s 2024 salary rule by the U.S. District Court for the Eastern District of Texas.

State thresholds vary: California $70,304/year, New York $62,400/year (NYC), Washington $67,724/year, Colorado $57,805/year. The OBBBA no-tax overtime deduction (P.L. 119-21) applies only to FLSA-eligible non-exempt employees — exempt salaried employees do not qualify. This tool is for informational purposes only and does not constitute legal or tax advice.

Sources: DOL.gov, 29 CFR §541, IRS.gov (Notice 2025-69), P.L. 119-21

Core Salaried Overtime Calculator

Convert salary to an effective hourly rate and calculate FLSA overtime pay

Annual Salary ($)

Pay Period

Standard Hours/Week

OT Calculation Method

Overtime Hours This Period

Non-Discretionary Bonus ($) Included in regular rate calculation

Shift Differential ($/hr)

Total Hours Worked This Period

FLSA Exemption Status Checker

Determine if your salaried position qualifies for overtime or is exempt under 2026 FLSA rules

Annual Salary ($)

Pay Basis

Primary Job Duties

Manages 2+ Full-Time Employees?

Exercises Independent Judgment?

State

Regular Rate of Pay Calculator

Calculate the FLSA "regular rate" including bonuses, differentials, and all included compensation

Weekly Salary ($)

Total Hours Worked This Week

Non-Discretionary Bonus ($) Production, attendance, performance bonuses

Commission Earned ($)

Shift Differential Pay ($)

On-Call Pay ($)

Piece-Rate Earnings ($)

Exclude: Overtime Premium Already Paid ($) Subtract OT premium already included in above

Fluctuating Workweek Calculator

Calculate OT under the FWW method — salary covers all hours, OT premium is 0.5x the regular rate

Fixed Weekly Salary ($)

Week 1 Hours Worked

Week 2 Hours Worked

Week 3 Hours Worked

Week 4 Hours Worked

Non-Disc. Bonus This Period ($)

Annual OT Earnings Projection

Project full-year total compensation including overtime premium earnings

Annual Salary ($)

Std Hours/Week

Average OT Hrs/Week

OT Weeks Per Year

Federal Tax (%)

State Tax (%)

401k (%)

Annual Bonus ($)

Weeks Worked/Year

OT Calculation Method Comparison

Compare Standard, Fluctuating Workweek, and Half-Time methods side by side

Weekly Salary ($)

Total Hours Worked

Non-Disc. Bonus ($)

Standard Hours/Week

Misclassification / Back Pay Audit

Estimate unpaid overtime if you were wrongly classified as exempt — calculate potential back pay

Annual Salary ($)

Avg Hours Worked Per Week

Years Misclassified FLSA statute of limitations: 2 yrs (3 if willful)

Weeks Worked Per Year

Standard Hours/Week

OT Multiplier

Salary Raise vs OT Cost Optimizer

Find the salary raise threshold that makes exemption more cost-effective than paying OT

Current Annual Salary ($)

Standard Hours/Week

Avg OT Hours/Week

Weeks with OT Per Year

Weeks Worked Per Year

Employer Payroll Tax Rate (%) FICA employer match + state UI

Multi-Period OT Pay Tracker

Track overtime across 4 pay periods and generate a comprehensive cumulative summary

Weekly Salary ($)

OT Method

PeriodHours WorkedBonus ($)Differential ($)

State-Specific Salary OT Rules 2026

See how your state's rules differ from federal FLSA for salaried employees in 2026

Annual Salary ($)

Select State

Hours Worked Today

Total Hours This Week

Salaried OT Reference Guide 2026

FLSA rules, exemption tests, calculation methods, and compliance for 2026

Weekly Salary Threshold: $1,128 (est.) HCE: $151,164/yr CA Exempt: 2x state min wage Liquidated Damages: 100% FWW: 0.5x premium only

It depends on whether the employee is "exempt" or "non-exempt." Salaried non-exempt employees ARE entitled to overtime pay at 1.5x their regular rate for hours over 40 per workweek under FLSA. The common misconception is that all salaried workers are exempt — this is incorrect. Exemption requires meeting both a salary level test (at least $1,128/week estimated for 2026) AND a duties test (executive, administrative, or professional roles). If either test fails, the employee is non-exempt and must receive overtime.

The 2024 DOL rule raised the standard salary threshold to $844/week ($43,888/year) effective July 2024, increasing to $1,128/week ($58,656/year) on January 1, 2025, with further adjustments indexed to wage data every 3 years. For 2026, the threshold is estimated at approximately $1,128/week pending final DOL rulemaking. Highly compensated employees (HCEs) earning $151,164 or more annually have a relaxed duties test. Note: Some courts have blocked portions of the 2024 rule — verify current status with DOL.gov.

Step 1: Calculate the Regular Rate of Pay = Total straight-time compensation (salary + non-discretionary bonuses + commissions + differentials) / Total hours worked. Step 2: Calculate the OT premium = Regular Rate x 0.5 x OT hours (since the straight-time portion is already included in the salary). Step 3: Total pay = Salary + OT premium. The employee already receives straight-time pay for all hours via salary, so only the extra "half" premium is owed per overtime hour.

Under the FWW method (29 CFR 778.114), a salaried employee agrees to receive a fixed salary covering all hours worked regardless of quantity. For overtime hours, the employer need only pay the additional 0.5x "half-time" premium (not the full 1.5x) because the salary already covers 1x for all hours. Requirements: (1) Hours genuinely fluctuate week to week, (2) salary is fixed and not reduced when few hours worked, (3) salary satisfies minimum wage for all hours, (4) clear mutual understanding exists. California does not recognize the FWW method.

Excluded from regular rate: (1) Discretionary bonuses (decided at employer's sole discretion, not promised in advance), (2) Gifts and payments not tied to hours/work, (3) Vacation, holiday, and sick pay, (4) Reimbursed expenses, (5) Overtime premium payments themselves, (6) Benefit plan contributions, (7) Profit-sharing or thrift plan contributions. Included: Non-discretionary bonuses (attendance, production, safety), commissions, shift differentials, on-call pay, piece-rate earnings, and most forms of regular remuneration.

California applies stricter rules than federal FLSA: (1) Exempt salary threshold = 2x the state minimum wage x 2080 hours/year. In 2026, with min wage at $16.50: threshold = $16.50 x 2 x 52 weeks = $68,640/year (vs ~$58,656 federal). (2) CA applies daily OT rules — over 8 hours in a day at 1.5x, over 12 hours at 2x, even for salaried employees. (3) FWW method is NOT recognized in California. (4) Computer software employees have a special hourly/salary test. Always use the rule most beneficial to the employee.

Effective Hourly Rate = Annual Salary / (Std Hours/Week x 52)
Regular Rate of Pay = Total Straight-Time Comp / Total Hours Worked
Standard OT Premium = Regular Rate x 0.5 x OT Hours
Standard OT Pay (1.5x method) = Regular Rate x 1.5 x OT Hours
FWW Regular Rate = Weekly Salary / Total Hours Worked
FWW OT Premium = FWW Regular Rate x 0.5 x OT Hours
Back Pay = Effective Hourly Rate x 0.5 x OT Hours x Weeks
Liquidated Damages = Back Pay x 1.0 (100% penalty under FLSA)

Disclaimer: This calculator is for informational purposes only and does not constitute financial advice. Consult a licensed financial advisor before making investment decisions.

Salaried Overtime Calculator

Do Salaried Employees Get Overtime? (Quick Answer)

The FLSA 3-Part Exemption Test — Salary Basis, Salary Level & Duties

Test 1 — Salary Basis: Paid a Fixed Predetermined Amount

Test 2 — Salary Level: Current Federal Threshold ($35,568/yr — $684/week)

Test 3 — Duties Test: Executive, Administrative, or Professional Role

Failing Any One Test = Non-Exempt = Overtime Owed

2026 Federal Exempt Salary Threshold — What Changed?

The 2024 DOL Rule Raised to $58,656 — Then Courts Vacated It

Current 2026 Threshold: $35,568/Year ($684/Week) Federal

State-by-State Salary Thresholds That Exceed Federal (CA, NY, WA, CO)

How to Calculate Overtime for a Non-Exempt Salaried Employee

Step 1 — Convert Salary to Hourly Rate (÷ 52 ÷ 40)

Step 2 — Calculate 1.5x Overtime Rate

Step 3 — Calculate Overtime Pay + Add to Regular Weekly Salary

Example — $45,000 Salaried Worker, 48 Hours in One Week

Fluctuating Workweek Method — What It Is and When It Applies

Does the OBBBA No-Tax Deduction Apply to Salaried Workers?

Exempt Employees — No FLSA Overtime, No OBBBA Deduction

Non-Exempt Salaried Employees — Yes, OBBBA Applies to the Overtime Premium

State Salary Thresholds 2026 — Where State Law Exceeds Federal

Related Overtime Calculators

Frequently Asked Questions — Salaried Overtime 2026

Do salaried employees qualify for overtime pay in 2026?

What is the FLSA exempt salary threshold in 2026?

How do I calculate overtime pay if I am a salaried non-exempt employee?

My salary is $45,000 — am I entitled to overtime?

What is the fluctuating workweek method for salaried overtime?

Does the OBBBA no-tax overtime deduction apply to salaried workers?

What is the duties test for FLSA overtime exemption?

Can my employer avoid paying overtime by making me salaried?

About This Calculator

2026 FLSA Key Thresholds

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Meet Intel

Salaried Overtime Calculator

Do Salaried Employees Get Overtime? (Quick Answer)

The FLSA 3-Part Exemption Test — Salary Basis, Salary Level & Duties

Test 1 — Salary Basis: Paid a Fixed Predetermined Amount

Test 2 — Salary Level: Current Federal Threshold ($35,568/yr — $684/week)

Test 3 — Duties Test: Executive, Administrative, or Professional Role

Failing Any One Test = Non-Exempt = Overtime Owed

2026 Federal Exempt Salary Threshold — What Changed?

The 2024 DOL Rule Raised to $58,656 — Then Courts Vacated It

Current 2026 Threshold: $35,568/Year ($684/Week) Federal

State-by-State Salary Thresholds That Exceed Federal (CA, NY, WA, CO)

How to Calculate Overtime for a Non-Exempt Salaried Employee

Step 1 — Convert Salary to Hourly Rate (÷ 52 ÷ 40)

Step 2 — Calculate 1.5x Overtime Rate

Step 3 — Calculate Overtime Pay + Add to Regular Weekly Salary

Example — $45,000 Salaried Worker, 48 Hours in One Week

Fluctuating Workweek Method — What It Is and When It Applies

Does the OBBBA No-Tax Deduction Apply to Salaried Workers?

Exempt Employees — No FLSA Overtime, No OBBBA Deduction

Non-Exempt Salaried Employees — Yes, OBBBA Applies to the Overtime Premium

State Salary Thresholds 2026 — Where State Law Exceeds Federal

Related Overtime Calculators

Frequently Asked Questions — Salaried Overtime 2026

Do salaried employees qualify for overtime pay in 2026?

What is the FLSA exempt salary threshold in 2026?

How do I calculate overtime pay if I am a salaried non-exempt employee?

My salary is $45,000 — am I entitled to overtime?

What is the fluctuating workweek method for salaried overtime?

Does the OBBBA no-tax overtime deduction apply to salaried workers?

What is the duties test for FLSA overtime exemption?

Can my employer avoid paying overtime by making me salaried?

About This Calculator

2026 FLSA Key Thresholds

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