You Might Be Owed Overtime Pay Even If You're on Salary

Many salaried workers in Arizona assume they aren’t entitled to overtime pay. Employers often reinforce this belief, suggesting that “salary” automatically means “exempt” from overtime. In reality, being on salary does not automatically disqualify you from overtime protections under federal law. Misclassification is widespread, and it could be costing you thousands of dollars you are legally owed.

Knowing your rights, recognizing the red flags of misclassification, and acting quickly can protect your income and ensure you receive the pay you deserve.

The Myth of “No Overtime If You’re Salaried”

Under the Fair Labor Standards Act (FLSA), most employees are entitled to overtime pay at 1.5 times their regular rate for all hours worked over 40 in a workweek. Simply being paid a salary does not automatically exempt you from overtime requirements.

Whether you are exempt depends on your actual job duties and how you are paid, not your job title or the fact that you receive a salary. Employers often misunderstand, or sometimes intentionally misrepresent, the law to avoid paying overtime to employees who are entitled to it.

For example, if you are paid a flat salary but regularly work 50 or 60 hours per week, you may be owed overtime unless your job duties clearly meet specific exemption criteria. Even if you agreed to a salary when you were hired, your employer cannot waive your right to overtime pay if you are non-exempt under the law.

Understanding FLSA Exemptions and Misclassification

To qualify for an exemption from overtime under the FLSA, your position generally must meet three requirements:

1. You are paid on a salary basis, meaning you receive a guaranteed minimum amount each week regardless of the quality or quantity of your work.

2. Your salary meets the minimum salary threshold, which is updated periodically by federal law.

3. Your primary job duties fall under certain exempt categories, such as executive, administrative, or professional roles.

   
   

Misclassification occurs when an employer labels an employee as exempt without meeting all these requirements. It is a violation of federal law and can entitle you to back pay and damages.

Common red flags of misclassification include:

• You are given a “manager” title but have no authority to hire, fire, or supervise employees.

• You perform routine, manual, or clerical work without making significant decisions.

• Your job involves primarily non-exempt tasks, like customer service, stocking, or repetitive data entry.

• You are told you are “on salary, so no overtime,” even as you consistently work well beyond 40 hours a week.

  
  

If these signs apply to your situation, it is worth reviewing your classification with an employment attorney.

Industries Where Misclassification Happens Often

Certain industries are notorious for misclassifying employees to avoid paying overtime. These include:

• Technology and Startups: Employees labeled as “project managers” or “software developers” may be working long hours without qualifying for exemptions.

• Healthcare: Nurses, medical technicians, and support staff often work extended shifts but may still be eligible for overtime pay despite being salaried.

• Restaurants and Hospitality: Assistant managers and shift leads are often salaried to avoid overtime pay while performing the same work as hourly employees.

• Retail: “Salaried” retail supervisors may still qualify for overtime if they primarily engage in customer service or stocking rather than managing the business.

• Construction and Field Services: Workers are sometimes misclassified as independent contractors or exempt employees, despite having schedules and duties that entitle them to overtime.

  
  

Employers in these industries often expect employees to work long hours, creating significant wage liabilities when misclassification is uncovered.

Real-Life Example: How Misclassification Hurts Workers

Consider a restaurant assistant manager who is paid a salary of $950 per week and regularly works 60 hours per week. The employer claims the employee is “exempt,” but in reality, the employee spends nearly all their time performing the same tasks as hourly staff, such as taking orders, cleaning, and cooking.

Under the FLSA, this employee is likely non-exempt and entitled to 20 hours of overtime each week. Over one year, this could result in thousands of dollars in unpaid wages, plus liquidated damages, interest, and attorney’s fees.

How to Get Back Pay

If you have been misclassified, you may be entitled to recover unpaid overtime wages for up to two years (or three years if your employer’s violation was willful), plus an equal amount in liquidated damages. This effectively doubles your recovery. Additionally, if your claim is successful, your employer may be required to pay your attorney’s fees and court costs.

For example, if you worked 10 hours of unpaid overtime weekly for two years at an effective hourly rate of $25, you would be owed $25 x 1.5 x 10 x 104 weeks = $39,000, which may double to $78,000 with liquidated damages, not including attorney’s fees and interest.

To prepare your case, it is important to document your work hours and the nature of your duties. Even if you do not have exact record, courts often rely on reasonable testimony and estimates if an employer fails to keep accurate records, as is required under the law.

When to Contact a Lawyer

Misclassification and unpaid overtime cases are time-sensitive, as your ability to recover wages may decrease each week you wait. Many employees fear retaliation or think they cannot win against a large employer, but the law protects you from retaliation for asserting your wage rights.

Speaking with an employment lawyer can help you:

• Determine whether your classification is lawful under the FLSA

• Calculate your potential back pay and damages.

• Prepare evidence and documentation to support your claim.

• Navigate negotiations with your employer or file a formal claim if needed.

  
  

Consulting an attorney can also help you understand whether other wage violations occurred, such as off-the-clock work, meal break violations, or improper deductions, which may further increase your recovery.

Think You’re Being Underpaid? Let’s Find Out.

If you suspect you have been misclassified and denied overtime pay, you may be owed thousands of dollars in unpaid wages. You work hard for your paycheck, and you deserve to be paid fairly under the law.

At Robinson Law Offices, we help Arizona workers hold employers accountable for wage violations. We know how to investigate misclassification, build a strong claim, and fight for the compensation you deserve.