Q. Our company pays overtime to salaried supervisors for hours they work over 40 in a week. I have never heard of this compensation practice. Is it legal?
A. If the supervisors are nonexempt (which they might be even if salaried), then paying overtime is not only legal, it is required.
If they are exempt, however, paying overtime is risky because it suggests that they are not truly exempt.should be paid the same salary every week regardless of how many hours they work. Paying them overtime risks losing their exempt status.
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- Supreme Court: Pharmaceutical reps exempt from FLSA OT rules
- Performing same tasks as staff won't eliminate a manager's exemption
- Make sure time records can withstand scrutiny
- Warn bosses: Wage violations could mean personal liability--and they would have to pay!