Compensating an Exempt Employee Who Works Extra Hours

Guide
Wage & Hour
Compensation Planning
Exempt Classification

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There is no legal requirement under state or federal law to pay exempt salaried employees overtime to compensate them for extra hours worked. Many employers have specific expectations about the number of hours in a standard workweek an exempt employee should regularly work and this is communicated as an expectation for the salary the employee will receive. In most organizations, exempt employees are expected to work as long as it takes to get their work done and to work extra hours when necessary.

Nevertheless, MRA occasionally receives calls from employers who wish to reward exempt employees for efforts above and beyond the call of duty. Sometimes extra pay is proposed.

There are some drawbacks to compensating exempt employees for all hours worked:

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