Answer

There should be no issue in paying straight overtime to an exempt employee, as long as there is a policy in place to provide for this payment. Neither the Fair Labor Standards Act (FLSA) nor state law generally require any payment for any overtime worked by an exempt employee. The AG has stated that policies providing for overtime payment to exempt employees under a documented policy would not be gratuitous in nature but rather an earned benefit of employment. Further, the AG states that the courts have recognized that employers may be required under State Law to provide payment for overtime, if the employee is reasonably led to believe such payment will occur through oral conversations or office practice. Absent these two circumstances, payment of overtime to an exempt employee has been considered an impermissible gratuitous payment by the AG. Please find attached some relevant AG opinions on this matter. AG Op. No. 98-0114 AG Op. No. 00-0084 AG Op. No. 00-0293 AG Op. No. 01-0311 AG Op. No. 03-0004 AG Op. No. 00-0503 AG Op. No. 07-0164 AG Op. No. 09-0173 Louisiana Legislative Auditor website: 04/16/2026 03:13:02 PM