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MDLaw, Attorney
Category: Business Law
Satisfied Customers: 6133
Experience:  Experience in business law, contract law and related matters.
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We have a business that is going from 1099 to w-2. we are

Customer Question

we have a business that is going from 1099 to w-2. we are trying not to get into over time. Can we go salary on the employees and set it for like 50 and then overtime startes
Submitted: 1 year ago.
Category: Business Law
Expert:  MDLaw replied 1 year ago.

Hello and thank you for using the Just Answer website. I look forward to assisting you. If an employee is non-exempt, meaning that they come under the Department of Labor's overtime rules, an employer is required to pay them overtime for any hours over 40 in a work week. There are very few exceptions (e.g. some hospital workers and police and firefighters).

Customer: replied 1 year ago.
nothing for salary employees
Expert:  MDLaw replied 1 year ago.

Overtime is applicable to non-exempt employees. Exempt employees do not get overtime. It is not broken down by whether the employee is salaried or not. It is broken down between the categories of exempt and non-exempt. For example, if you are salaried but earning 23,660 or less, you would be entitled to overtime pay automatically. If the employee's salary is higher than that, then they are entitled to overtime pay so long as they do not qualify as exempt under the EAP exception (executive, administrator, or professionals).

It is also important to be aware that there are new rules going into effect by the Department of Labor early next year. Under the new rules, all salaried workers, regardless of title or duties, are eligible for overtime if they earn $50,440 or less.