Salaried Exempt vs. Non-Exempt Overtime Misclassification Checker
Just because you are paid a fixed salary or given a 'Manager' title does NOT make you exempt from overtime. Test both the Salary Basis and Duties Tests.
1. Enter Your Case Details Runs in your browser
2. Your result Live Output
- Automatic Non-Exempt (Fails Salary Test): My annual fixed salary is BELOW the state minimum exempt threshold (e.g., <$68,640/yr in CA or <$64,350/yr in NYC) — If your fixed salary falls even $1 below the statutory minimum (2x state minimum wage in California), you are legally entitled to overtime regardless of job duties.
- Destroys Salary-Basis Exemption: My employer deducts pay from my salary when I work partial days or when work is slow — Impermissible partial-day docking destroys the 'salary basis' requirement under 29 C.F.R. § 541.602.
- Fails Executive Exemption Duties Test: I have 'Manager' in my title, but I do NOT supervise at least 2 full-time employees or have hiring/firing weight — A 'Manager' who does not customarily direct 2+ full-time staff fails the Executive Exemption.
- Fails California Quantitative Duties Test: I spend MORE than 50% of my time on routine production, customer service, or manual work (California Strict 50% Rule) — Unlike federal law, California requires exempt employees to spend strictly MORE than 50% of their actual work time on exempt managerial/intellectual duties.
- Fails Administrative Exemption: I follow strict scripts, SOP manuals, or ticket queues without independent authority over major business policies — The Administrative Exemption requires exercising 'discretion and independent judgment with respect to matters of significance'.
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3. How the rule works
Who this is for
Salaried employees who are told they are 'exempt' from overtime but suspect their pay or duties do not meet the legal tests.
Employers can use it as a first screen before classifying a role, but exemptions are fact-specific and a borderline role deserves a closer look.
What to have ready
- Your offer letter and job description.
- Your annual salary and any deductions from it.
- A week-by-week breakdown of how you actually spend your time.
- Names and roles of anyone you supervise.
The rule
Under the federal rules in 29 C.F.R. Part 541, an executive, administrative or professional employee is exempt from overtime only if three tests are met: they are paid on a salary basis (a fixed amount not reduced for the quality or quantity of work), the salary meets the minimum level, and their actual duties fit the exemption. After a federal court set aside the Department of Labor's 2024 increase, the federal minimum salary is $684 a week ($35,568 a year).
California is stricter. Labor Code § 515 requires an exempt employee to be 'primarily engaged' in exempt duties, meaning more than half of working time, and to earn at least twice the state minimum wage for full-time work. With a $16.90 minimum wage in 2026, that is $70,304 a year. If a salaried employee is not exempt, § 515(d) treats the regular hourly rate as one-fortieth of the weekly salary.
Read the official text:
Worked example: a $62,000 'manager' in California
Rita is paid a $62,000 salary in 2026 and spends most of her day on customer calls. She is classified as exempt.
California salary floor 2026 = 2 x $16.90 x 2,080 = $70,304 Rita's salary = $62,000 -> below the floor, not exempt Regular rate (§ 515(d)) = $62,000 / 52 / 40 = $29.81 an hour Overtime rate = $29.81 x 1.5 = $44.71 an hour 5 overtime hours a week = $223.56 owed each week
Common mistakes
- Relying on a job title. 'Manager' or 'analyst' means nothing on its own; duties decide.
- Using the federal salary level in a state with a higher one, such as California, Washington or New York.
- Ignoring pay docking. Regular deductions for partial-day absences can break the salary basis.
- Counting time on supervisory duties loosely. California looks at how time is actually spent each week.
Limits of this tool
- Salary thresholds vary by state and change each year; check your state labor agency's current figure.
- Professional exemptions for doctors, lawyers, teachers and some computer workers have special rules.
- The checklist flags red flags; it does not make a legal determination.
Sources were last checked in October 2026. Statutes are amended often; if the official text differs from this page, the official text controls.
4. Clear Next Steps & Statutory Action Plan
- Compare your salary with the current federal and state thresholds.
- Write down how your time is actually spent in a typical week, by task.
- If you appear misclassified, estimate overtime with the reconstructed hourly rate and raise it in writing.
5. Frequently Asked Statutory Questions (29 C.F.R. Part 541 (FLSA White-Collar Exemptions); Cal. Lab. Code § 515)
How is overtime calculated if I was wrongly treated as exempt?
In California, the regular rate is one-fortieth of the weekly salary under § 515(d), and overtime is paid at 1.5 times that rate for hours over 8 a day or 40 a week. Federal law uses a similar approach for salaried non-exempt workers working a fixed 40-hour schedule.
What is the federal salary threshold now?
$684 a week. The Department of Labor's 2024 rule raising it was vacated by a federal court in November 2024.
Can my employer cut my salary in a slow week?
For an exempt employee, deductions for lack of work are generally not allowed and can mean the employee is not paid on a salary basis.