Q. Do salaried employees in New Hampshire qualify for overtime?
A: By federal law, employees in New Hampshire are entitled to
overtime unless they fall within a specific exception or are
considered exempt under the law.
The federal Fair Labor Standards Act, ("FLSA"), sets the
standards for the federal minimum wage, overtime pay, record
keeping, and other requirements that affect full time and part time
employees. With minor exceptions, the FLSA applies to companies
that engage in or produce goods for interstate commerce, or handle,
sell, or work on goods or materials that have been moved in or
produced for interstate commerce.
Under the FLSA, workers are entitled to a federal minimum wage and
overtime pay protections unless the workers fall within an
exception or are considered exempt employees. Nonexempt employees
are entitled to overtime pay of not less than 1.5 times their
regular rate of pay after 40 hours of work in a workweek.
Simply because an employer pays an employee on a salary basis does
not make the employee exempt. The FLSA exempts employees from the
minimum wage and overtime requirements who are paid a salary of not
less than $455 per week, or $23,660 per year, and who are employed
in a bona fide executive, administrative, professional, certain
computer professions or creative professions, or outside sales
capacity as defined under the law. For each category, an employee
must meet both the salary test and specific job duties or criteria
listed.
Employers should carefully analyze the job duties for each position
considered for exemption to determine if the job qualifies for
exemption. Certain other exemptions also apply for business owners,
highly compensated employees making more than $100,000 year, and
other jobs specifically considered exempt under the FLSA. For
information on exemptions and job categories exempt from overtime,
visit www.dol.gov.
NH has enacted minimum wage and overtime pay laws. When federal law
differs from New Hampshire law, employers must comply with the more
protective law. Currently, New Hampshire does not have provisions
relating to exempt employees and New Hampshire has the same minimum
wage as federal law.
Overtime disputes are on the rise. If incorrectly classified,
an employer will be liable to the employee for all wages owed, as a
nonexempt employee. These minimum standards cannot be waived or
reduced. Companies should carefully review job descriptions to
confirm the actual job duties performed and to assess proper
classification of employees as exempt or nonexempt.
Published in the Manchester Union Leader - June 2013
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.