Overtime exemption salary threshold

Everhour helps teams plan capacity and tracked hours, but exemption status starts with federal salary and duties tests.

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Calculate regular and overtime earnings based on your hours and rate. Supports standard time-and-a-half and double-time multipliers.

Total hours including overtime

$

Typically 40h/week

Total pay this period
Regular pay$1,000.00
Overtime pay$300.00
OT hours8h

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How the threshold affects overtime calculations

What this calculation answers

The overtime exemption salary threshold tells you whether a worker can meet the salary-level part of the standard executive, administrative, or professional exemption under the federal FLSA baseline. The listed federal salary level is $684 per week. A worker paid below that amount does not meet the standard EAP salary-level requirement, even before the job-duties test is reviewed.

The calculation does not decide exemption status by job title, department, or whether a person is paid a salary. The standard EAP exemptions require both salary-basis pay of at least $684 per week and the applicable job-duties test. The computer-employee exemption can use the $684 weekly salary basis or $27.63 per hour. Outside-sales employees qualify under duties and location tests, with no salary-level requirement.

Compare salary before overtime

Start by converting the worker's pay to a weekly amount for the same fixed pay period. If a salaried employee earns $650 per week, that amount is below the $684 federal salary level for the standard EAP exemptions. That does not automatically make every hour overtime, but it means the employee cannot qualify for those standard EAP exemptions under the federal salary-level test.

Next, check whether the employee is covered and nonexempt. Under the FLSA federal baseline, covered nonexempt employees must receive overtime pay for hours worked over 40 in a fixed workweek. More protective state wage laws, policy terms, contracts, or collective bargaining agreements can give the employee a greater benefit, so the federal calculation is the floor, not always the final answer.

Use the weekly overtime formula

For a covered nonexempt employee paid hourly, calculate regular pay for the first 40 hours, then calculate overtime at not less than 1.5 times the regular rate for hours worked over 40 in that fixed FLSA workweek. The FLSA workweek is 168 hours, made of seven consecutive 24-hour periods, and each workweek stands alone.

Example: a covered nonexempt employee works 47 hours in one fixed FLSA workweek at a $31.20 regular hourly rate. Regular pay is 40 × $31.20 = $1,248. Overtime hours are 7, and the overtime rate is $31.20 × 1.5 = $46.80. Overtime pay is 7 × $46.80 = $327.60, for total gross pay of $1,575.60.

When a calculator is enough

A one-time calculator is enough when you need a quick federal baseline check: weekly salary versus $684, covered nonexempt status, hours over 40, regular rate, overtime rate, and total pay. It is also enough for reviewing a single pay period before sending a correction to payroll or explaining a paycheck line to an employee.

A managed workflow matters when salary status, capacity, scheduled time off, and actual hours need review every week. Everhour Resource Planning shows visual timelines, member and project views, weekly capacity, availability gaps, scheduled time off, and planned-vs-actual time comparisons, so overtime checks are tied to staffing decisions before the payroll handoff.

This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.

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Frequently Asked Questions

Is earning more than $684 per week enough to be exempt?

No. Under the federal FLSA baseline, the standard EAP exemptions require salary-basis pay of at least $684 per week and the applicable job-duties test. Job titles alone do not determine exempt status. A worker can be salaried and still be nonexempt if the duties test is not satisfied.

What happens if a salaried employee is below the federal threshold?

If a salaried employee is below the $684 weekly salary level, the employee does not meet the salary-level part of the standard executive, administrative, or professional exemptions. If the employee is covered and nonexempt, FLSA overtime is due for hours worked over 40 in a fixed workweek.

Does the threshold replace the 40-hour overtime rule?

No. The threshold helps determine whether certain exemptions can apply. The overtime calculation is separate: covered nonexempt employees must receive overtime pay for hours worked in excess of 40 in a workweek at not less than 1.5 times the regular rate.

Can a company average two weeks to keep someone under overtime?

No. Under the FLSA federal baseline, each fixed 168-hour workweek stands alone. Hours may not be averaged over two or more workweeks to avoid overtime. A 35-hour week followed by a 47-hour week still creates 7 overtime hours in the 47-hour week for a covered nonexempt employee.

Do weekend or holiday hours change the exemption threshold?

No. The FLSA does not require overtime pay merely because work happens on Saturdays, Sundays, holidays, or regular days of rest. The federal trigger is hours over 40 in the workweek unless another law, policy, contract, or collective bargaining agreement gives a greater benefit.

How does Everhour Resource Planning help control overtime exposure?

Everhour Resource Planning shows workload on visual timelines with member and project views, weekly capacity, availability gaps, scheduled time off, and planned-vs-actual comparisons. Managers can see overallocations before the week closes and adjust assignments before excess hours become a payroll issue.

How does Everhour support overtime review before payroll?

Everhour Overtimes lets admins set daily or weekly overtime limits and review overtime hours in Team Hours. Its Payroll dashboard calculates overtime pay and gross pay from employee hourly cost and tracked time when the Overtime app is enabled.

Plan overtime before payroll

Use Everhour Resource Planning to compare scheduled capacity with actual tracked work, spot overloads early, and keep overtime review connected to staffing decisions and payroll preparation.

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