Well, you guys who think you are going to get away with working some guy 50 hours and paying only 40 becuae he is on "salary" are in for a shocker. First you should know that you can be liable for 3 or up to five years of back wages if your employee complains and you do not rectify. YOU will be in the wrong. Your state or federal labor investigator will assume you are guilty of violating wage and hour laws unless you have substaintial documentation to prove otherwise. For an employee to be considered "exempt" from overtime, among other things, he must 1) supervise two or more people 2) perform work substantially different than those he supervises 3) have the ability to hire and FIRE those who report to him, 4) he must be allowed time off without docking him for time off for personal needs, and much more. If you claim that you didn't know he was working more than 40 hours, the dep't of labor has an expression called "knew or should have known" which will hang you. Let's say you have an employee who sits at his desk and will answer the phones during their lunch hour. Guess what guys, that is compensable time because you "suffered or permitted your employee to work." There are many more reasons why you do not want to play this game, ask your CPA or attorney, or go to a labor law seminar for an eye opener !!!!