Exempt Employees May Receive Overtime Pay

January 5, 2004

Margellius Anunobi worked as a salaried pharmacist for Eckerd and was classified as an exempt professional employee under the Fair Labor Standard Act's (FLSA) white collar exemption. Anunobi challenged his exempt status and sued Eckerd to recover unpaid overtime compensation.

One of the key facts relied on by Anunobi was Eckerd's practice of paying premium pay to exempt employees; specifically, Eckerd paid $5.00 per hour for each hour worked in excess of 40 in a given workweek. Anunobi contended this extra hourly-based payment was inconsistent with salary-basis compensation and defeated his exempt status under the FLSA. The trial court disagreed and held that an employer's payment of "premium pay" for overtime hours does not negate an employee's salary status. Accordingly, employers should now feel free to reward their salaried employees with additional hourly-based compensation without fear that those payments will defeat the white collar exemption.

Firm Highlights


The COVID-19 Vaccine Part 1


The Importance of Strategic Transitions

Transitions versus change, what’s the destination and why is this important for a business?  Kevin talks with Gwen Gierke from Gierke Jungbauer on how they help to manage transitions. Transition happens in three stages: the ending, the neutral zone, and...


U.S. Supreme Court Settles Issue of Title VII Protections for LGBTQ+ Employees

Headshot of Stephanie Rojo

COVID-19 Response Team - Resources and Updates



Individual Coverage HRA. What is it? What are the benefits and drawbacks? What companies are a good fit for ICHRAs versus group health plans? Kevin talks with Matt Hollister, President and CEO of Business...


The 2020 HR Recap

We’ve made it to the recap episode! The good, the bad, the ugly, and everything in between. Join Kevin and Elaine (Lainey) Luthens as they discuss it all including FFCRA legislation, OSHA, what they...


The Tale of OCS and the Coronavirus

How has Opportunity Community Services survived during this pandemic and Phase 1? Rose Kukwa of Opportunity Community Services and Dennis Van Norman with Van Norman & Associates share their experience.  Rose and her team...

News Item

Thompson Coe Welcomes Partners Kenya Bodden and Patrick Kelly


Supreme Court Reaffirms and Clarifies Ministerial Exception to Employment Discrimination Laws Under First Amendment’s Religion Clause


Thompson Coe Saves Client $100Ks in Damages After 3-Day Trial