Why this matters
Every overtime rule on this site applies only to non-exempt employees. If you are exempt, the overtime protections do not apply; if you are non-exempt, they do — even if you are paid a salary. Misclassification is common, and it is one of the largest sources of unpaid overtime, so it is worth knowing the actual test rather than the myth.
The three-part test
To be exempt from overtime under the most common "white collar" exemptions, an employee generally must satisfy all three of these:
- Salary basis — paid a predetermined, fixed salary that isn't reduced based on the quantity or quality of work.
- Salary level — the salary is at or above a threshold amount. There is a federal figure, and several states set a higher one.
- Duties test — the actual job duties fall into an exempt category: executive (managing), administrative (business operations with discretion), or professional (advanced knowledge). Job title and salary are not enough; the day-to-day duties decide it.
Fail any one part and you are non-exempt — and owed overtime. A "manager" who mostly does line work, or a salaried worker below the threshold, is typically non-exempt regardless of the label.
The salary threshold is a state variable
The salary-level piece is where states diverge. Several states set an exempt-salary threshold above the federal one, frequently pegged to a multiple of the state minimum wage, so it rises as the minimum wage rises. Where the state threshold is higher, it is the one that applies. Washington, for example, sets its threshold as a multiple of the state minimum wage — the Washington exempt-salary calculator checks a salary against the current state figure.
One caution the tools are careful about: clearing the salary threshold does not make you exempt on its own. It only satisfies one of the three parts. The duties test still has to be met, which no calculator can decide for you.
If you think you're misclassified
Being paid a salary, being called a manager, or being told "we don't do overtime here" does not settle the question. If your duties don't match an exempt category, you may be owed overtime you never received. The what-to-do guide covers documenting the hours and raising it with your state agency.