Overtime Pay for Financial Services Employees: What You Need to Know

In the financial services world, your paycheck might look impressive, but that doesn’t automatically mean you’re exempt from overtime pay.

Under the Fair Labor Standards Act (FLSA), job titles don’t determine your rights. What truly matters is what you actually do every day.

Here’s where things stand:

In 2024, the Department of Labor attempted to raise the salary thresholds for exempt employees. But those updates were blocked in court. For now, we are sticking with the 2019 guidelines.

That means to be considered exempt, you must:

• Be paid at least $684 per week on a salary or fee basis, or
• Earn at least $107,432 annually as a “highly compensated employee” (HCE)

Still, meeting a salary threshold is just one piece of the puzzle. Whether you’re eligible for overtime also depends on your specific job duties, and that’s where many financial service employees may still qualify for extra pay.

The Administrative Exemption: Who Qualifies (and Who Doesn’t)

Not everyone in the financial services industry is automatically exempt from overtime pay. To qualify under the FLSA’s administrative exemption, your role must check all three of these boxes:

• You’re paid a salary (or fee basis) of at least $684 per week
• Your primary duties are non-manual and office-based, supporting the general business operations of the company
• You regularly exercise independent judgment on important matters, meaning you make decisions, not just follow instructions

Many financial services roles, such as underwriters, compliance analysts, or account managers, can meet this standard. But others fall short, especially if their work is heavily supervised, routine, or lacks discretion.

What Counts as “Administrative” Work in Financial Services

Not all office work is created equal under the FLSA. To qualify for the administrative exemption, your duties must go beyond routine tasks and involve genuine decision-making. In the financial services world, you might be exempt if your job includes things like:

• Reviewing a client’s income, assets, or credit profile
• Evaluating which financial products align with the client’s goals
• Advising clients on investment strategies or loan options
• Helping clients understand the benefits and risks of financial services
• Promoting or servicing financial products based on client needs

These types of duties typically involve independent judgment and strategic thinking. If you're helping clients navigate complex financial decisions—not just following a script—your role may fall under the administrative exemption.

When Finance Roles Don’t Qualify for the Exemption

Just because you work in the financial sector doesn’t automatically mean you’re exempt from overtime. What really matters is how you do the job, not just the title on your business card.

If your primary responsibility is selling financial products, without providing much analysis or individualized advice, you likely don’t meet the criteria for the administrative exemption under the FLSA.

For example, you probably don’t qualify if most of your time is spent:

• Promoting or “pushing” loans or credit cards
• Pitching insurance policies
• Focusing on hitting sales targets without analyzing client needs

Additionally, it doesn’t matter whether you work directly with clients or through a third-party intermediary. The key question is: Are you exercising independent judgment, or are you following a script?

Exempt vs. Nonexempt Roles in Real Life

Here’s a side-by-side comparison of roles to show how the exemption might apply:

Likely Exempt

• Financial advisors developing retirement plans
• Underwriters reviewing loan or insurance applications
• Compliance analysts monitoring for regulatory risks
• Portfolio analysts offering recommendations based on client needs

Likely Nonexempt

• Sales reps cold-calling customers to push credit cards
• Bank tellers or customer service reps handling routine transactions
• Insurance agents focused solely on sales quotas or commissions

Why Misclassification Matters—for Everyone

Getting employee classification wrong isn’t just a technicality—it can cost workers and employers alike.

If you're putting in long hours and your role doesn't meet the strict exemption criteria under the FLSA, you may be legally entitled to overtime pay—even if you're paid a salary.

For employers, misclassifying employees as exempt when they’re not can result in serious consequences:

• Back pay for unpaid overtime
• Penalties and fines
• Class-action lawsuits
• Damage to the company's reputation

That’s why it’s so important to go beyond job titles. Employers should regularly review actual job duties and compare them with FLSA guidelines, rather than relying on outdated assumptions or vague descriptions.

What to Watch for If You're in Finance

Wondering if you’ve been misclassified? Here are a few questions to ask yourself: 

• Are you doing deep financial analysis or mostly handling sales?
• Do you regularly make independent decisions that impact clients or the business?
• Are you providing tailored financial advice or just following scripts?
• Is your pay structure salary-based, or are you driven by commissions?

If most of your role leans toward sales and you’re missing out on overtime pay, you may need to take action.

Disclaimer: This information is based on fact sheets the DOL provides.

Have Questions About Your Classification?

At Morgan & Morgan, we help financial workers understand their rights and recover the full pay they deserve for their hard work. If you think your employer’s misclassified your role or you’re missing out on overtime pay you’ve rightfully earned, we’ll be happy to review your case for free.

All you have to do is fill out this case evaluation form.

If you have a valid case against your employer, our employment attorneys might be able to represent you.