Overtime Salary Laws in Atlanta, Georgia

Salary Basis

Employees paid on a salary basis receive compensation for their work at a fixed rate, if they're classified as exempt workers under the FLSA. There are, however, salaried workers classified as non-exempt workers and they receive overtime when they work more than 40 hours in a work-week. Receiving compensation on a salary basis simply means your earnings are calculated according to weekly, monthly or annual pay, and the minimum wages set by the FLSA for salaried workers is $23,660 annually.

Atlanta overtime laws follow Georgia state law, which adopts federal regulations under the FLSA. A salaried, non-exempt employee receives a fixed salary; however, the fixed rate is reduced to an hourly equivalent for the purposes of calculating overtime pay. The overtime rate for salaried, non-exempt employees is 1.5 times their equivalent hourly rate. For example, a paralegal who earns $1,000 per month earns the equivalent of $25 per hour. When that paralegal works 55 hours in a work-week, he earns an additional 15 hours of overtime at $37.50 per hour, as $25 multiplied by 1.5, equals $37.50. Therefore, his total overtime is 15 hours multiplied by $37.50, which is $562.50; accordingly, his total weekly earnings, including overtime would be $1,562.50.

The federal FLSA regulations, and thus, Georgia and Atlanta laws on this subject, exempt some salaried employees from the overtime pay regulations. Salaried, exempt employees aren't entitled to overtime pay. They are expected to perform their jobs duties and fulfill the responsibilities of the position for which they were hired, regardless of the time it takes. Some salaried workers put in far more than 40 hours a week, yet they do not get additional compensation for the extra time. Salaried, exempt workers are those who meet the criteria for administrative, executive and professional exemptions. In addition, some outside sales jobs also are exempt and employees in computer-related occupations are considered exempt, provided they are paid a minimum of $27.63 per hour, or $57,470 annually.

Atlanta employers who try to avoid paying overtime wages to salaried, non-exempt employees by classifying them as exempt employees can land in hot water with the U.S. government, as well as Georgia officials. The U.S. Department of Labor has jurisdiction over employers subject to the FLSA, and as such, they have the right to inspect payroll records, individual employee pay records, wage rates and hours worked to determine whether the employer is violating overtime pay regulations. Federal and state governments will work with employers who don't understand the regulations or who inadvertently overlook their obligations to pay overtime; however, intentional and willful violations carry stiff penalties and fines, as well as payment of back wages and overtime to employees due unpaid wages.