Common Exemptions & Overtime Violations

Not Every “Exempt” Worker Truly Is Exempt

The word “exempt” gets thrown around in workplaces a lot. Employers tell staff they’re exempt from overtime, which makes it sound final, as if nothing can be done. But not every person labeled “exempt” is actually excluded from overtime pay. In fact, many workers discover too late that their classification was wrong, costing them thousands in wages.

Employers lean on that word because it gives them cover. Workers accept long hours without questioning the lack of overtime pay. Yet “exempt” is not a blanket category. It has strict legal definitions. If your actual job duties don’t match those definitions, you’re likely entitled to overtime. At Horn Wright, LLP, our employment law attorneys see misclassification as one of the most common forms of wage theft, and we fight to make sure employees get the pay they’ve earned.

New York Rules on Overtime Exemptions

Exemptions are defined by both federal and state law. The Fair Labor Standards Act (FLSA) outlines categories like executive, administrative, and professional exemptions. But it’s not just about job titles, it’s about duties and pay levels.

New York adds its own rules on top of the FLSA. For instance, the state sets higher salary thresholds for exempt employees than federal law. This means a worker who qualifies as exempt under federal law might still be eligible for overtime under New York standards. That dual system matters, especially for employees who fall near the borderline.

When employers misapply these rules, it often leads to misclassification and overtime pay violations. A “manager” who spends most of their time stocking shelves, or an “administrative assistant” who mostly answers phones, should not be exempt. Labels don’t determine exemption status, duties and pay do.

Misuse of Exempt Status by Employers

Employers misuse exemptions in predictable ways. They promote someone to “assistant manager,” give them a slightly higher salary, and suddenly claim overtime no longer applies. Or they pay workers just above the exemption threshold but assign them routine tasks that don’t meet the criteria.

New York’s Department of Labor frequently investigates these patterns, especially in industries where abuse is rampant. Under New York Labor Law (NYLL) § 142-2.2, exemptions must meet specific tests for both salary and duties. Employers who cut corners expose themselves to liability for years of unpaid wages.

This is also where identifying overtime violations becomes key. Workers who see inconsistent explanations, confusing pay structures, or sudden changes to their classification should raise red flags. Misuse of exemptions is often the first step in larger wage theft schemes.

How to Prove You Were Wrongfully Classified as Exempt

Challenging an exemption classification requires evidence, but it doesn’t always mean producing thousands of pages of documents. Courts look at what you actually did day to day, not just what your job description says.

Evidence that proves misclassification often includes:

• Job duties compared to titles. If your title says “manager” but your duties are stocking shelves, cleaning, or working registers, that’s strong proof.
• Work schedules. Long hours without overtime for routine tasks show the exemption was a cover for unpaid labor.
• Employer communications. Emails or memos that treat employees as hourly staff despite exempt titles weaken the employer’s case.

Both the FLSA and NYLL back employees here. Courts routinely side with workers when actual duties don’t align with exempt classifications. This is also central to employer liability for overtime violations. Once misclassification is exposed, employers are responsible for all unpaid overtime, sometimes going back years.

New Hampshire Provides Broader Employer Discretion on Exemptions Than New York

Where a case is filed matters. New Hampshire law gives employers broader discretion in classifying workers as exempt. Courts there often defer to employers unless employees can present overwhelming evidence to the contrary. That means many borderline cases in New Hampshire lean in favor of the employer.

New York, on the other hand, provides stronger protections. With higher salary thresholds and stricter duties tests, employees have more opportunities to challenge false exemptions. Workers in New York can argue that even if they meet the federal minimum for exemption, state law still entitles them to overtime. This difference gives New York employees more leverage to claim unpaid wages and damages.

Common Industries Where Exemptions Are Abused

Some industries stand out for abusing exemptions because the structure of the work makes it easy to blur lines.

• Retail. “Assistant managers” often spend more time on the floor than managing, yet they’re treated as exempt.
• Hospitality. Hotel supervisors are pushed into long shifts under the guise of exemption, despite performing hourly-level duties.
• Healthcare. Certain staff are mislabeled exempt even though their work is routine and heavily supervised.
• Corporate offices. Administrative staff are often categorized as exempt without meeting the independent decision-making standard.

These industries are fertile ground for misclassification claims. Workers in them should be especially vigilant about whether their duties match their classification. This is often where attorneys uncover patterns of abuse that affect entire groups of employees.

Identifying abuses in these industries also plays a role in filing an overtime pay claim. Group claims, or class actions, are common in these settings, because when one employee is misclassified, many others usually are too.

Remedies When Misclassification Costs You Overtime Pay

When workers prove they were wrongly classified, the remedies are significant.

• Back pay for overtime. Courts can award unpaid overtime going back several years under both FLSA and NYLL.
• Liquidated damages. Employees may receive an additional equal amount as a penalty, doubling the recovery.
• Attorneys’ fees. Employers often have to pay the legal costs, ensuring workers don’t go into debt to fight wage theft.

These remedies reflect the serious consequences of misclassification. Employers can’t simply change a job title or stretch a job description to avoid paying overtime. Once proven, misclassification triggers full liability. This is also where calculating unpaid overtime damages becomes crucial. Attorneys reconstruct schedules, duties, and payroll records to determine exactly how much compensation is owed.

Horn Wright, LLP, Challenges False Exemptions

False exemptions rob workers of time and money. They create the illusion of prestige, a new title, a modest salary bump, while taking away the right to overtime. At Horn Wright, LLP, we see through those tactics.

Our employment law attorneys dig into the real duties, the schedules, and the pay structures to expose misclassification. We’ve helped workers across industries reclaim wages they were told didn’t exist. And we don’t stop at back pay — we pursue penalties and fees that make employers think twice before abusing exemptions again.

If you’re ready to work with a nationally recognized firm that knows how to dismantle false exemptions, Horn Wright, LLP, will fight for the overtime pay you’ve been denied.