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Q&A: We recently promoted an employee and switched her to salaried exempt. Do I need to pay her the overtime that she worked before I gave her the promotion and raise?

Question:

We recently promoted an employee and switched her to salaried exempt. Do I need to pay her the overtime that she worked before I gave her the promotion and raise?

Answer from Rachel, SHRM-CP:

Yes, the employee is still eligible for the overtime she worked prior to when the exemption from overtime went into effect and should be paid for any overtime hours worked during that period. You do not need to pay her for overtime worked after the exemption went into effect. If the exemption took effect mid-workweek, we’d recommend paying her overtime for hours over 40 during that week, even though some of them may have been worked while she was an exempt employee.

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Rachel joins the HR Support Center with three years of HR Generalist experience. After completing a B.A. in Psychology, she began her HR background in employee relations, staffing, and payroll. During her free time, Rachel is an avid kayaker and plans to visit every National Park during her lifetime.

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