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Law Firms: Hourly vs. Salaried Employee Payroll (2026)
Hourly versus salaried in a law firm is not a preference, it is the exemption test: a salary of at least $684 a week plus a duties test, and law firms have industry-specific exemptions on top. Paralegals and legal assistants at the national median earn $1,209 a week. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
Who in a law firm can be salaried and exempt
Employees holding a valid license to practice law who actually practice are exempt professionals, and the salary level and salary basis tests do not apply to them. Job titles alone do not determine exemption status; duties and pay must meet the regulations.
Paralegals and legal assistants generally do not qualify for the learned professional exemption because an advanced specialized degree is not a standard prerequisite for the field, so they are owed overtime after 40 hours unless another exemption applies. The exemption is available to a paralegal with an advanced degree in another field who applies it, such as an engineer hired for patent work.
The salary math for law firms
The standard salary level is $684 a week, $35,568 a year. BLS puts the May 2025 national median for paralegals and legal assistants at $62,890, which is $1,209 a week, above the floor, so for that role the duties test is the whole question. Paying a salary to a non-exempt employee is legal; it just does not remove overtime, which is then computed on the salary divided by hours actually worked each week.
What changes when a role moves between the two
Moving attorneys and paralegals from hourly to salaried changes the pay code, the timekeeping rule and the overtime treatment at once. A salaried non-exempt employee still needs hours recorded every week, and a salaried exempt one needs the exemption documented against the rule above, because in an audit the burden of proving the exemption sits with the employer.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- Employees holding a valid license to practice law who actually practice are exempt professionals, and the salary level and salary basis tests do not apply to them. Job titles alone do not determine exemption status; duties and pay must meet the regulations. [DOL Fact Sheet #17D]
- Paralegals and legal assistants generally do not qualify for the learned professional exemption because an advanced specialized degree is not a standard prerequisite for the field, so they are owed overtime after 40 hours unless another exemption applies. The exemption is available to a paralegal with an advanced degree in another field who applies it, such as an engineer hired for patent work. [29 CFR 541.301(e)(7)]
Read the full guide to FLSA overtime rules for employers, and the rest of the law firm payroll library.
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Frequently Asked Questions
Can a law firm pay attorneys a salary and skip overtime?
Only if the role meets an exemption: the $684 weekly salary floor plus the duties test, or an industry-specific exemption. Employees holding a valid license to practice law who actually practice are exempt professionals, and the salary level and salary basis tests do not apply to them.
Does the $62,890 national median for paralegals and legal assistants clear the salary test?
$1,209 a week is above the $684 floor, so salary is not the obstacle; the duties test is. BLS OEWS, May 2025.
What does managed payroll cost for a law firm?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Billable hours tracking, partner draw vs. salary and attorney bonus structures are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Law Firms. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Overtime Pay Under the FLSA
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