From the HR Support Center: Do We Have to Pay Overtime to an Employee Recently Switched to Exempt?

From the HR Support Center: Do We Have to Pay Overtime to an Employee Recently Switched to Exempt?

We recently promoted an employee and switched her to salaried exempt. Do I need to pay her the overtime that she worked before I gave her the promotion and raise?

 
Yes, the employee is still eligible for the overtime she worked prior to when the exemption from overtime went into effect and should be paid for any overtime hours worked during that period. You do not need to pay her for overtime worked after the exemption went into effect. If the exemption took effect mid-workweek, we’d recommend paying her overtime for hours over 40 during that week, even though some of them may have been worked while she was an exempt employee.

The HR Support Center is a service offered to Payroll Partners clients, and provides access to exclusive, industry-leading HR tools and resources, for just a few dollars a month. From employee handbooks, job descriptions and other commonly used HR documents, to up-to-the-minute law alerts, easy-to-understand state and federal law libraries, and unique training videos, the HR Support Center will help you effectively manage your HR compliance and employee relations needs.

Legal Disclaimer: Payroll Partners and/or the HR Support Center are not engaged in the practice of law. The content in this email should not be construed as legal advice, and does not create an attorney-client relationship. If you have legal questions concerning your situation or the information you have obtained, you should consult with a licensed attorney. Payroll Partners and/or the HR Support Center cannot be held legally accountable for actions related to this article.