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Salaried Exempt in Wisconsin

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Are salaried managers entitled to overtime under federal law in Wisconsin?

Some salaried managers are. Some are not. However, merely labeling a salaried employee a “manager” is not enough to exempt him or her from being entitled to overtime pay.

The subject of overtime pay for salaried employees is a complicated one, following detailed federal guidelines regarding who is and who is not entitled to overtime pay. It also depends to some extent on which state the business operates in. Some states have passed their own overtime laws that supersede the federal guidelines. State law may cover employees who are not entitled to overtime under federal law. Employers are frequently surprised to discover that any salaried employees may be entitled to receive pay for overtime work.

The law overseeing the issue of overtime is the federal FLSA (or Fair Labor Standards Act). Under the FLSA, employers must pay workers “time-and-a-half” for overtime, or 1.5 times their regular hourly rate after 40 hours a week.

The FLSA, however, does specify two categories of salaried employees. One is the salaried exempt employee, who is not entitled to overtime. The other is the salaried non-exempt, who is entitled to receive overtime pay.

There are many factors determining which salaried employees are exempt (not entitled). Some guidelines exist, however.

Pay matters. A salaried employee earning more than $455 a week is an exempt employee. So is a highly compensated employee, one who receives $100,000 or more a year for specifically non-manual labor.

Job duties matter also. Among those exempted by federal law are professionals with advanced degrees, executives, computer employees, administrative employees, and outside sales people.

Exempt computer positions would be programmers, system analysts, software engineers, and the like. Professionals with advanced knowledge would include emergency room doctors and pharmacists, for example. Executives are those managing 2 or more people. Administrative employees are exempt if they make independent judgment calls that are important to a business. A purchasing agent who chooses vendors would be exempt. The administrative assistant who phones in the orders to the vendors would not be entitled to overtime. Creative professionals, such as sculptors and artists, are exempt. JH