Q: 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?
A: 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-work week, 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.
Differentiating exempt versus non-exempt status continues to be an area of concern among employers. Watch this free webinar to learn how to navigate the complexities of wage and hour relating to non-exempt employees.