North Carolina Salaried Employee Appraisal Guidelines - General
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FAQ
Under federal overtime law and Texas overtime law, salaried employees must receive overtime pay for hours worked over 40 in any workweek unless two specific requirements are met: (1) the salary exceeds $455 per workweek; and (2) the employee performs duties satisfying one of the narrowly-defined FLSA overtime
Highly-compensated: Any employee who primarily performs non-manual labor and regularly performs at least one exempt administrative, executive, or professional duty, and makes $100,000 or more per year (including at least $455 per week on salary), can be exempt from overtime.
These exemptions also apply in Texas. So if you're paid an annual salary and earning more than a certain amount set by law, you are considered "exempt" and not covered by the FLSA. This means exempt employees are not entitled to overtime pay for working more than 40 hours in a week.
Maximum hours an exempt employee can be required to work The law does not provide a maximum number of hours that an exempt worker can be required to work during a week. This means that an employer could require an exempt employee to work well beyond 40 hours a week without overtime compensation.
North Carolina employees should be aware of their employment rights. Employers are not permitted to implement rules and regulations that prohibit discussions about pay. If you have been disciplined or fired for talking about your pay, contact Gibbons Law Group, PLLC to discuss whether you have a legal claim.
Federal Exemptions from Overtime: To be considered "exempt," these employees must generally satisfy three tests: Salary-level test. Effective January 1, 2020, employers must pay employees a salary of at least $684 per week. The FLSA's minimum salary requirement is set to remain the same in 2022.
After the rule went into effect on January 1, 2020, an employee will have to be making over $684 a week to be exempt from premium overtime pay. That means anyone making less will have to track their hours worked and for any hours worked over 40 per week, they will need to be paid overtime.
One of the general requirements is that the salaried-exempt employee must be paid a guaranteed salary of at least $684 a workweek (no salary test for outside sales), which would also be the promised rate of pay for the employee.
Exempt employees are not entitled to overtime pay under federal or NC labor laws. North Carolina also does not set the maximum hours that employees are allowed to work in a day. Instead, it is entirely up to the employer whether to have employees work 8-, 12- or 16-hour shifts.
Can I Be Entitled to Overtime Pay If I am a Salaried Employee in North Carolina? All nonexempt workers who fall under the rules established by the U.S. Fair Labor Standards Act (FLSA) must receive a minimum wage of not less than $7.25 per hour, as of 2017.
