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The $101K Lesson: A Salary Alone Doesn’t Buy You an Exemption

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sp; Paying employees a flat weekly salary doesn’t make them exempt from overtime. One employer just learned that lesson the expensive way—after misclassifying dozens

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f workers. TL;DR: A Houston plumbing contractor paid 31 service technicians and apprentice helpers a salary and didn’t pay them overtime. But those workers didn’t qualify as exempt under the Fair Labor Standards Act. The Department of Labor recovered over $100K in back wages and damages. A salary alone doesn’t make someone exempt—even highly compensated employees

must meet the duties test. Salaried Workers, But No Overtime—an

d Now a Six-Figure Settlement According to a Department of Labor

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