The part that trips people up most is this: being paid a salary does not automatically mean a worker is exempt from overtime. An overtime exemption is a legal rule that lets an employer avoid paying time-and-a-half for hours worked over the usual overtime limit, but only if the job fits specific tests set by law. Those tests usually look at what the employee actually does, how much control they have on the job, and in some cases how they are paid. Common exemptions include certain executive, administrative, professional, outside sales, and some transportation-related roles.

This matters because employers often label workers "exempt" when the work does not qualify. If the exemption is wrong, the worker may be owed unpaid wages, overtime pay, interest, and sometimes additional damages. Job title alone is not enough. A "manager" who mainly stocks shelves, runs errands, or does routine manual work may still be entitled to overtime.

In New Mexico, overtime rules can come up under both the federal Fair Labor Standards Act and the New Mexico Minimum Wage Act. Federal salary-threshold rules changed in 2024 through a U.S. Department of Labor final rule, though litigation has affected enforcement in some places, so the exact standard can be disputed. Workers with a misclassification claim may file a wage complaint with the New Mexico Department of Workforce Solutions or bring a legal claim for unpaid overtime.