Q.  I have an hourly billing clerk who often ends up working overtime. I can cut costs by giving her a raise and putting her on salary. Do labor laws allow this?
A. No. Granting an employee exempt (from overtime) status  by placing her on salary as opposed to paying an hourly wage is not something you can do arbitrarily. The Fair Labor Standards Act lays out requirements for classifying employees as exempt vs. nonexempt. Use this FLSA Fair Pay Exemption Questionnaire to help you determine which employees in your office are exempt and which are nonexempt.
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                                          Last Updated On
                                          
                                              August 07, 2025
                                          
                                    
 
                                 
                                
                                    
	
                                        Originally Published On
                                        
                                            March 24, 2010