CLRM Alerts
Overtime for Salaried Employees?

A management employee who draws a salary intuitively may be considered exempt from the overtime provisions of the Fair Labor Standards Act. Not necessarily, say federal courts in Colorado and Oklahoma. In two separate rulings upheld by a federal appeals court, employers were found to have violated the overtime provisions of the FLSA by not paying overtime to salaried, white collar supervisors. In each of these cases, the employer (coincidentally a public employer) had a compensation scheme that permitted the employer to dock salaried employees’ pay for partial day absences, and the court found that this feature made the employees non-exempt and entitled to overtime.

Cook, Little, Rosenblatt & Manson ALERTS are produced periodically as a service of Cook, Little, Rosenblatt & Manson, p.l.l.c. and are intended to highlight emerging legal issues affecting our clients and friends. It is, of course, no substitute for specific legal advice.