Am I Entitled To Overtime Pay When I’m Paid A Salary In New Jersey?

Contact me today


Many salaried employees in New Jersey must still receive overtime pay despite being compensated on a salary basis. Being paid a salary only partially determines whether you are eligible for overtime pay under the federal Fair Labor Standards Act (FLSA) and New Jersey state law.

It is important to note that your employer does not have the final say on where your employment classification falls. Employers often misclassify employees, both intentionally and unintentionally, thereby depriving those workers of the benefits and pay to which they are entitled under the law. 

What Is The Earning Threshold For Overtime Eligibility?

As of Jan. 1, 2020, a new rule issued by the U.S. Department of Labor states that employees who earn less than $35,568 per year are entitled to receive overtime pay, regardless of whether they are salaried or paid an hourly wage. This was an increase from the previous threshold of $23,660, which was implemented in 2004.

Is Salary The Only Factor?

No. Salary is just one of the components that the FLSA and New Jersey law consider when determining overtime eligibility. Other important factors relate to job duties and area of employment.

Generally, to be exempt from overtime pay, you must be salaried, meet the minimum salary threshold, and have high-level job duties or some creative or decision-making responsibilities. However, there are gray areas and specific requirements that can further complicate matters. 

Which Job Classifications Are Excluded From OT? 

Salaried employees earning more than $35,568 per year may be exempt from overtime if they fall into one or more exempt employment classifications based upon their job duties and responsibilities. Exempt classifications include, but are not limited to: 

  • Executive, administrative, and professional roles
  • Outside salespeople
  • Computer employees such as systems analysts and software engineers
  • Some farm and hotel workers 
  • Certain religious positions

These categories are strictly defined, and a salaried employee must satisfy specific tests in order to fall into one or more of these classifications. However, some salaried employees who earn significantly more money than the typical worker may be exempt from overtime if their take-home pay even if they only partially satisfy the tests of one of the aforementioned exempt employment classifications.

How Do Job Titles And Duties Affect My Eligibility? 

Like salary, a job title alone does not determine exempt status. Here are two examples:

  • An administrative assistant may not be excluded from earning overtime if their responsibilities do not involve making significant business decisions
  • Similarly, a retail manager may not qualify for the executive exemption if the manager’s primary responsibilities are on-floor sales and maintenance work rather than traditional management duties

Depending on the division of labor and their specific roles, both of the above workers may be eligible to receive time-and-a-half pay for hours worked over 40 in a week. Determining exempt status can be tricky and is highly dependent on the actual work that the employee performs. Many employers are unfamiliar with the rules, while others intentionally misclassify workers to improve their bottom lines. 

How Much Should I Be Earning For Overtime?

Overtime must be paid at a rate of one and one-half times an employee’s regular hourly rate or the minimum wage rate, whichever is higher. In New Jersey, the minimum wage is currently $12 per hour, so the minimum overtime rate is $18 per hour for hours worked over 40 per week.

Can I Recover Lost Overtime Pay If My Employer Doesn’t Follow The Rules?

Yes. We help hourly and salaried employees recover unpaid overtime wages for hours worked over 40 in a week. If you feel you are owed overtime pay, an experienced employment law attorney can answer your questions and provide you with options.

Those earnings can be recouped regardless of whether the employer intentionally or unintentionally misclassified you. All unpaid wage claims are unique, so get the advice you need by contacting an experienced and skilled employment attorney for a free consultation.


The answer is intended to be for informational purposes only. It should not be relied on as legal advice, nor construed as a form of attorney-client relationship.


No aspect of this advertisement has been approved by the Supreme Court of New Jersey. Please visit the Super Lawyers Selection Process for a detailed description of the Super Lawyers selection methodology.

Other answers about Wage & Hour Laws

Kenneth J. Katz

How Do I Know If I’m Entitled To Overtime Pay In New York?

If you are a nonexempt employee covered under the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL), your employer must typically …Sponsored answer by Kenneth J. Katz

Genie Harrison

Does The California Equal Pay Act Only Apply To Women?

The California Equal Pay Act was created to address and narrow the wage gap between men and women. However, it does not apply only to women. It …Sponsored answer by Genie Harrison

Brian D. Spitz

Should I be getting overtime pay at my job in Ohio?

In most cases: yes. Ohio has laws in place that protect employee rights after they have worked over 40 hours in a week. Under the law, most companies …Sponsored answer by Brian D. Spitz

Call me:

Contact me

Required fields are marked with an asterisk (*).

To: Kenneth J. Katz Super Lawyers: Potential Client Inquiry

The information contained in this web site is intended to convey general information. It should not be construed as legal advice or opinion. It is not an offer to represent you, nor is it intended to create an attorney-client relationship. The use of the internet or this contact form for communication is not necessarily a secure environment. Contacting a lawyer or law firm email through this service will not create an attorney-client relationship, and information will not necessarily be treated as privileged or confidential.

Your IP address and location have been logged to assist in preventing abuse of this service.

Page Generated: 0.31564807891846 sec