What Employees Must be Paid Overtime?

Understanding who is exempt vs. non-exempt can be a challenge for employers.  To be considered exempt from overtime laws, your employees must be: (i) paid on a salary basis; (ii) earning a minimum of $684 per week, or $35,568 annually; and (iii) performing primary duties that are considered exempt under state and federal overtime laws.

Some things you need to know:

• If you have employees who are paid on something other than a salary basis (i.e., hourly, commission-based, or piece work), they are not exempt from overtime regardless of what their duties are.
• If you have employees who do not earn at least $684 per week, or $35,568 annually, they are non exempt from overtime, no matter what their duties are or whether they are paid on a salary basis or not.
• The definition of "non-exempt duties" generally involves people in a supervisory or management role, licensed professionals, and individuals performing administrative tasks with a high level of responsibility and independent judgment.  There are, however, very specific lists of other exemptions that you should talk to an employment attorney about if you have questions.

Learn more here about overtime law in Massachusetts.

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