Being paid a salary does not automatically mean you are exempt from overtime pay. In New York City, many salaried employees are still legally entitled to overtime under federal and state law. Whether overtime is owed depends on both your salary level and the actual duties you perform — not simply your title or pay structure.

How Overtime Law Applies to Salaried Employees

Many employees assume that salary pay automatically excludes them from overtime protections. It does not. Overtime eligibility turns on whether you meet the legal requirements for an exemption under the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL). 

Employers must satisfy two independent tests before lawfully denying overtime: a salary threshold requirement and a duties test. Failing either test means the employee is entitled to overtime at one and a half times their regular rate for all hours worked beyond 40 in a workweek, regardless of whether they receive a salary.

The Three Main Overtime Exemptions

Federal and state law recognize three primary white-collar exemptions that employers use to classify salaried workers as overtime-ineligible:

  • Executive exemption–The employee’s primary duty must be managing the business or a recognized department, they must customarily direct the work of at least two other employees, and they must have genuine authority over hiring, firing, or advancement decisions. 
  • Administrative exemption–The employee’s primary duty must involve office or non-manual work directly related to the management or general business operations of the employer, and they must exercise discretion and independent judgment on matters of significance, not just follow instructions.
  • Professional exemption–The employee’s primary duty must require advanced knowledge in a field of science or learning customarily acquired through a prolonged course of specialized intellectual instruction.

Courts look past job titles and examine what employees actually do day to day. A worker called a “manager” who primarily stocks shelves, handles customer service, or follows scripted procedures may not qualify for any of these exemptions.

2026 Salary Thresholds in New York

Earning above the salary threshold is a prerequisite for exemption, but it is not sufficient on its own. The employer must still prove that the duties test is met. As of January 1, 2026, New York’s salary thresholds for the executive and administrative exemptions are:

  • New York City, Nassau, Suffolk, and Westchester counties: $1,275.00 per week ($66,300 per year)
  • Remainder of New York State: $1,199.10 per week ($62,353.20 per year)

The federal FLSA threshold remains $684 per week ($35,568 per year) — roughly half the New York City figure. Because New York law applies the standard more favorable to the employee, NYC workers benefit from the significantly higher state threshold. Importantly, New York does not impose a separate salary minimum for the professional exemption; the federal $684/week threshold governs that category.

Any salaried employee earning below the applicable threshold is non-exempt and entitled to overtime; no duties analysis is required.

Can Employers Require Unlimited Hours from Salaried Workers?

No. Employers may require overtime work, but non-exempt employees must receive overtime pay. Common problems include employers assuming exemption status without analyzing actual duties, expecting employees to answer emails after hours or work through breaks, and failing to count all compensable time worked. The law focuses on hours of compensable work performed, not the employee’s pay structure.

What Evidence Supports an Overtime Claim?

Employees who believe they are owed unpaid overtime should preserve:

  • Pay stubs and salary records
  • Work schedules, calendars, or timekeeping records
  • Emails and messages sent or received outside normal hours
  • Job descriptions and training materials
  • Testimony from coworkers who observed your actual duties

Even when an employer fails to maintain accurate records, employees may rely on reasonable estimates supported by available evidence. Courts have allowed workers to proceed based on their best recollection when employer recordkeeping is deficient.

How Far Back Can You Recover Unpaid Overtime?

The statute of limitations differs significantly between federal and state law, and the difference matters. Under the FLSA, employees generally have 2 years to file a claim, which is extended to 3 years for willful violations. Under the New York Labor Law, the lookback period is six years. Because New York applies the more favorable rule, NYC employees typically have a substantially longer window to pursue unpaid wage claims than workers in most other states.

Employees who regularly worked long hours over an extended period may have claims worth considerably more than they expect once unpaid overtime, liquidated damages (which under the NYLL can equal 100% of the unpaid wages), interest, and attorneys’ fees are factored in.

How Lipsky Lowe Can Help

Overtime classification issues require careful analysis of payroll practices, job duties, and applicable salary thresholds. At Lipsky Lowe, we represent NYC employees in wage-and-hour disputes involving overtime misclassification, unpaid wages, and salary-exemption issues. 

Our wage and hour attorneys can review whether your employer properly applied an overtime exemption, calculate potential unpaid wages, and guide you through the next steps. If you believe you were improperly denied overtime, contact us for a confidential consultation.

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