The Ins and Outs of Overtime Pay for Salaried Executive Employees Per Massachusetts and Federal Laws

Determining Whether Salaried Executive Employees are Entitled to Overtime Under Massachusetts Wage and Hour Laws

According to Massachusetts and Federal laws, Massachusetts executive and/or managerial employees are entitled to be paid overtime unless they are (1) paid a guaranteed salary of at least $455/week and (2) perform certain types of duties. That’s an “and” not an “or,” meaning that Massachusetts employers must satisfy both parts of this test (the salary part and the duties part) in order to avoid paying an employee overtime.

I am a manager, assistant manager, supervisor, team leader, or shift leader in Massachusetts that is paid a salary… should I be getting paid overtime?

Maybe. Remember, regardless of your job title, your employer is required to pay you overtime unless they can satisfy the requirements of a salary test and a duties test. Are you paid at least $455 per week? If yes, then we move on to the duties test. If no, then you should be getting paid overtime.

The ‘executive exemption’ is the most common duties exemption to overtime pay applied to managers, assistant managers, supervisors, team leaders, and shift leaders in Massachusetts. To satisfy the duties test for executive employees, an employer must prove the following:

  • an employee’s primary duty must be managing the enterprise, or a customarily recognized department or subdivision of the enterprise;

  • the employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent; and

  • the employee must have the authority to hire or fire other employees, or the employee’s suggestions and recommendations as to the hiring, firing, advancement, promotion or other change in status of other employees must be given significant weight.

All three of the duties test requirements and the salary test requirement must be satisfied in order for an employee to be disqualified from overtime pay under the executive employee exemption. If an employer cannot prove each of these elements as it relates to your duties, than you should be paid overtime.

Are you an employee living or working in Massachusetts?  Are you paid a salary and consistently working over 40 hours a week? You may be entitled to overtime pay. Contact us today for your free consultation.