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Assistant Manager Salary and Overtime Rights

An assistant manager salary doesn’t automatically eliminate overtime rights. Whether you qualify depends on the law that covers your work, the exemption your employer claims, your actual duties, and how you’re paid. A management title or annual salary figure alone can’t answer those questions.

Can a Salaried Assistant Manager Receive Overtime?

Yes. Under the Fair Labor Standards Act, covered employees who aren’t exempt generally receive at least one-and-a-half times their regular rate for hours worked beyond 40 in a workweek. An employer can pay a nonexempt employee a salary and still owe overtime.

Covered means a wage law applies to your employment. Exempt means a specific legal exception removes an otherwise applicable overtime requirement. Nonexempt means that exception doesn’t apply. State laws can provide additional protections.

What Salary Requirements Apply in 2026 and 2027?

As of October 2026, the standard federal executive exemption generally requires at least $684 per week on a salary basis, equivalent to $35,568 over 52 weeks. The administrative exemption generally uses the same amount, with salary or qualifying fee-basis pay. Employees must also meet requirements related to their day-to-day duties.

For New York executive and administrative exemptions under the applicable wage orders, the 2026 weekly salary thresholds are higher. The annual equivalents below assume 52 weeks and don’t replace the weekly requirements.

Applicable rule or work location Weekly amount 52-week equivalent
Federal standard salary level $684.00 $35,568.00
New York City and Nassau Suffolk and Westchester counties $1,275.00 $66,300.00
Rest of New York State $1,199.10 $62,353.20

These figures address exemption requirements, not typical assistant manager earnings. Confirm the wage order, work location, and employment dates that apply to your role. Other states can have different salary levels or duties tests. Under current rules, these salary thresholds continue into January 2027. Requirements may change later, so check the rules that apply to your work location and employment dates. Meeting the salary threshold alone doesn’t establish an overtime exemption.

Why Meeting the Salary Threshold Isn’t Enough

The standard federal executive exemption also requires that management is your primary duty, including regularly directing at least two full-time employees or their equivalent and hiring or firing authority or personnel recommendations that carry particular weight. A higher-level manager can make the final decision.

The administrative exemption has its own duties requirements involving qualifying work related to management or general business operations and discretion on significant matters. A supervisory title doesn’t establish that exemption either.

What Counts as Salary Basis Pay?

Under federal rules, salary-basis pay generally means you receive a predetermined amount each pay period that doesn’t shrink because the quality or quantity of your work changes. The rules generally require the full salary for a week in which you perform work, subject to specified exceptions. Some full-day absences, unpaid FMLA leave, and the first or last week of employment can permit deductions.

Review the reason for any reduction in your paycheck, rather than assuming every deduction is unlawful. State law may impose additional requirements. Also, an employer can sometimes pay extra compensation without losing an exemption.

How Overtime Can Work with a Salary

For a nonexempt employee, the overtime calculation depends on what hours the salary covers and what other pay belongs in the regular rate. The employer can’t simply call a salary “all inclusive” to avoid legally required overtime.

For example, assume a nonexempt assistant manager receives $1,000 for a 40-hour workweek but works 50 hours and has no other compensation affecting the regular rate. The regular rate calculates to $25 per hour, so the 10 overtime hours should accrue at $37.50 per hour. That would add $375, making total pay $1,375 for that week.

This is an illustration, not a formula for every salary arrangement or a promise of recovery. Bonuses, commissions, the hours the salary covers, and applicable law can change the calculation. A lawyer can review the actual pay agreement and records.

What to Keep for a Pay Review

Keep pay stubs, offer letters, salary-change notices, bonus policies, and your own record of hours worked. Note any work before opening, after closing, or outside scheduled shifts, along with deductions and changes in your responsibilities. Use records you can lawfully access; don’t take confidential employer or customer information.

Your salary may change during employment, and an exemption analysis may change with it. A review should consider each relevant period, rather than applying today’s pay or duties to your entire employment history.

This page provides general information, not legal advice. Contacting the firm doesn’t create an attorney-client relationship. Don’t send confidential or time-sensitive information through the website form.

FREQUENTLY ASKED QUESTIONS


Can the exempt salary threshold be prorated for a part-time assistant manager?

Generally, no. Under the standard federal executive and administrative exemptions, working fewer scheduled hours doesn’t let an employer reduce the required weekly amount proportionately and still satisfy the ordinary salary-level test. A part-time employee can instead be nonexempt. State requirements and specific exceptions may also apply.

Can a bonus count toward the federal salary threshold?

Sometimes. Federal rules allow certain nondiscretionary bonuses, incentives, and commissions to satisfy up to 10% of the standard salary level, subject to timing and other conditions. A discretionary bonus isn’t interchangeable with that pay. Don’t assume this federal allowance satisfies New York’s separate salary requirement.

If I earn more than $100,000, do I automatically lose overtime rights?

No. There’s no automatic $100,000 cutoff. The current federal highly compensated employee exemption uses at least $107,432 in total annual compensation, requires at least $684 per week on a salary or fee basis, and has additional conditions related to assigned tasks. It applies only when the primary duty includes office or nonmanual work. Separate state protections still need review.

Can my employer reduce my exempt salary when the store closes early?

Generally, federal salary-basis rules don’t permit a reduction simply because the employer has less work available when you’re ready and able to work. The result can differ for a week in which you perform no work or another permitted exception. Keep the pay stub and details of the closure so counsel can review the reason and applicable rules.

Can an exempt assistant manager receive extra pay for extra shifts?

Yes, in some arrangements. Federal rules can allow additional pay above a qualifying guaranteed salary without automatically defeating the exemption. Receiving extra shift pay also doesn’t establish that the exemption is valid; the required salary basis, salary level, and duties still matter. A day-rate or hourly guarantee requires closer review under its own rules.

Can my employer average a busy week and a quiet week to avoid overtime?

No, under the ordinary federal weekly overtime rule. For example, 50 hours one week and 30 the next don’t cancel out the first week’s overtime for a covered nonexempt assistant manager. A two-week pay period doesn’t change that rule. Paid time off generally isn’t counted as hours worked for this federal calculation.

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