Can "Blue Collar" Workers Be Exempt From Overtime? What Construction Employers Need To Know

Construction companies often ask whether working foremen, crew leads, or site supervisors can be overtime‑exempt under the Fair Labor Standards Act (FLSA). Many craft and trades employees are categorically non‑exempt, but true supervisors may qualify for the executive exemption if they meet strict salary and duties tests. Colorado employers must also satisfy the Colorado Overtime and Minimum Pay Standards (COMPS) Order, which imposes its own salary thresholds and guidance. Getting classifications right is critical: misclassification can trigger back‑wages, penalties, and attorneys' fees.

Why Most Construction Workers Must Get Overtime

Federal law is crystal clear on this point. Under the FLSA, “blue collar” workers who do manual labor are almost never exempt from overtime rules. This means carpenters, electricians, plumbers, mechanics, iron workers, and laborers must be paid time-and-a-half for any hours over 40 in a workweek. No exceptions, no matter how skilled they are.

When Can a Supervisor Be Exempt?

Supervisors can be exempt from overtime only if they satisfy all elements of the following “core duties:”

1. They must meet the salary threshold:
   • Colorado minimum: $1,086.25 per week ($56,485 annually)
   • Federal minimum: $684 per week ($35,568 annually)
2. Over fifty percent of their duties must be management of the enterprise or a recognized department or subdivision. In construction, this includes directing jobsite operations, planning and assigning work, setting schedules, appraising performance, handling complaints and discipline, ensuring safety compliance, managing materials and equipment, coordinating with subcontractors, and maintaining quality and productivity.
3. They must supervise at least two people.
4. They must have authority to hire or fire, or their recommendations on hiring, promotion, or discipline must carry particular weight and be regularly relied upon.

Four Common Missteps in the Construction Industry

1. Assuming that anyone titled “foreman” or “superintendent” is exempt. Titles do not control; actual duties do. If a “supervisor” primarily performs the same manual work as the crew, they likely do not qualify.
2. Paying a day or piece rate without overtime and calling it a “salary.” Without a guaranteed weekly salary at or above the threshold, the salary basis test is not satisfied.
3. Overlooking the “two or more employees” requirement when crews shrink or overstate a lead's role in hiring and discipline.
4. Colorado employers frequently miss that Colorado requires a higher salary than the FLSA.

Best Practices

Design the Role Right from the Start.  If you want a position to be exempt, structure it that way. Make management the primary responsibility. Put it in writing in the job description, then make sure it happens in practice.

Pay a True Salary.  Set compensation at or above Colorado's threshold (which is higher than federal law requires). Review it every year, because Colorado updates its requirements and may outpace federal changes. If you offer hourly or incentive pay, confirm it does not undermine the salary basis or indicate that the primary role is production work.

Monitor the Hands-On Work.  It's normal for supervisors to pitch in when deadlines loom. But keep an eye on the balance. If they're spending most of their week doing manual labor, management isn't their primary duty anymore.

Document Their Authority.  Keep records showing that your supervisor's recommendations on hiring, promotions, and discipline actually influence your decisions. Create a consistent process where you ask for and rely on their input.

Audit Regularly.  Review your classifications whenever staffing levels change or project scopes shift. Train your payroll and HR staff that a fancy title and high pay don't automatically create an exemption.

When in Doubt, Pay Overtime.  If an employee doesn't clearly meet all four requirements, classify them as non-exempt and pay overtime. This conservative approach costs far less than defending a misclassification lawsuit, paying back wages, penalties, and attorneys' fees.

The Bottom Line

Overtime exemptions in construction are narrow and technical. Most workers—even those with leadership responsibilities—are entitled to overtime pay. Before you classify anyone as exempt, make absolutely sure they meet every requirement.

Getting it wrong can be expensive. Getting it right protects both your business and your employees.

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.