Wage and Hour Laws FAQ
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Do I have to pay my managers overtime?
3. Do I have to pay my managers overtime?
If they are truly management employees, probably not. Under federal law, executive employees are not entitled to overtime pay. An executive employee is one who earns a salary of at least $455 a week, routinely supervises two or more employees, has the right to hire, fire, or promote workers, and manages the business or one of its subdivisions. So, if your managers supervise a department and manage at least two employees, they are not entitled to overtime. But if you have simply tacked a glorified title onto an otherwise low-level job -- if you are in the habit of calling your janitorial staff Assistant Managers of Sanitation, for example -- you are required to pay overtime. For more on the laws governing overtime pay, see Nolo's article When Must Employers Pay Overtime?