Salaried Doesn’t Mean Exempt: Common Misclassification in Washington’s White-Collar Workforce

Justice Law Corporation

The good news for people who work in Washington is that state law makes many more people eligible for overtime pay than federal law does. That includes many workers who are paid on a salary basis, as well as hourly employees.

Unfortunately, not all employers comply with the law. Many claim that wide groups of workers are exempt from overtime pay, simply because they are paid salaries or have job titles that include “manager” or “supervisor.”

The truth is that just because you are paid on a salary basis, that does not mean that you are ineligible for overtime. What matters is how much you are paid and what kind of primary job tasks you perform.

At Justice Law Corporation, our Washington wage and hour attorneys help working people fight back when they are ripped off or shortchanged on the job. We are seasoned attorneys who have dedicated our professional lives to these cases and have a significant track record of success. 

Here is what you need to know about overtime pay and eligibility.

Time and a Half Pay for Overtime

State law in Washington generally requires employers to pay employees “time and a half,” or 1.5x their normal hourly rate, for all hours worked beyond 40 in a given workweek. 

Take, for instance, an employee who is paid $30 per hour at an office job in Bellingham. If she works 45 hours in a workweek, she must be paid $30 per hour for the first 40 hours and $45 per hour for the other five hours. 

Overtime pay is not automatically required for weekend and holiday work. Instead, it depends on the total number of hours worked in the workweek. Employers can define a workweek as any seven consecutive days that begin on the same day and time every week. The calendar week (Sunday to Saturday) is the default for employers who do not otherwise define the workweek. 

The White-Collar Exemption for Overtime Pay

Federal and state wage and hour laws exempt wide ranges of “white-collar” employees from the requirement to be paid at higher rates for overtime work.

To be exempt under either law, an employee must:

  • Be paid a salary of at least a minimum amount (which varies by state and federal law); and 
  • Perform primary duties that are “executive, administrative, or professional”

The salary threshold for the federal law exemption is $684 per week ($35,568 per year). Anyone who makes more than that amount and primarily performs  “executive, administrative, or professional” work does not have to be paid time and a half for overtime hours. 

Washington makes many employees eligible for overtime pay, even if they do not qualify under the federal law. That is because it is harder to qualify for the state’s “white-collar” exemption. Workers in the state must make significantly higher salaries (and perform “executive, administrative, or professional”) to be exempt.  

The salary threshold for 2025 varies by employer size.

  • Small (one to 50 employees): $1,332.80 per week ($69,305.60 annually)
  • Large (51 or more employees): $1,499.40 per week ($77,968.80 annually)

The salary threshold for small and large employers is set to rise to $1,541.70 per week ($80,168.40 annually) in 2026. The standard will rise again in the following years, varying by employer size.

Paid on a Salary Basis? You May Still be Eligible for Overtime

It is a common misconception that being paid a salary automatically makes you exempt from overtime. That is not true. 

What matters instead is how much you are paid and what kind of work you do. Only workers who are paid above the salary threshold and primarily perform exempt duties are ineligible for overtime pay.

The exemption is meant to cover people in certain professional positions, as well as those who truly work as managers or supervisors. 

  • Executive: managing a department and supervising at least two full-time employees.
  • Administrative: exercising independent judgment on significant matters.
  • Professional: performing learned professional work requiring advanced knowledge.

An employee who is paid a salary but spends most of his or her time on tasks that do not meet these requirements is not exempt and must be paid at the higher overtime rate. An employee who satisfies the duties test but is paid a salary below the threshold amount is also not exempt.

Your Job Title Does Not Matter

Another misconception: Anyone with a job title that includes “manager” or “supervisor” is not entitled to overtime pay.

The title of your position has nothing to do with whether you have the right to be paid overtime for extra hours. Rather, you must be paid at the higher overtime rate unless you are a salaried employee who makes more than the threshold amount and primarily performs executive, administrative, or professional duties.

For people who are classified as “managers,” you must primarily focus on duties that involve exercising discretion and independent judgment. If you spend most of your time on tasks that are similar to those being performed by non-managers, you are not exempt from overtime pay requirements.

What to Do if You Are Owed Overtime Pay

Anyone who has been denied overtime pay has the right to take legal action to get the money they are owed. 

Workers in Washington can file claims with state and federal agencies, requesting investigations. Employees can also file lawsuits against their employers for unpaid overtime, seeking back pay, interest, and other remedies.

Groups of workers can also join together to take action when their employers violate overtime and other wage and hour laws. Employment class actions help workers level the playing field with large corporations by allowing them to pursue claims in a single case. 

Our Washington Wage and Hour Attorneys Can Help

If you believe that your employer is violating your rights on the job, whether it is by being underpaid for overtime or in other terms and conditions, you do not need to go it alone. A Washington wage and hour attorney at Justice Law Corporation can help you evaluate your claim and understand your rights and options.