This study aimed to develop a conceptual framework to differentiate among different levels of job satisfaction of overqualified employees, and interpret the disparity among them as a function of the interaction between different levels of leader-member exchange (LMX), and the psychological empowerment (PE) in banks working in Sharqiyah Governorate. This study accomplished its goals by testing two hypotheses using a questionnaire to collect primary data from random sample equal to 213 employees from 10 banks in Sharqiyah Governorate. Cross-tabulation technique and Kruskal-Wallis test have been employed to classify overqualified employees into three different levels of job satisfaction. Moreover, the significant difference between the different levels of job satisfaction for these individuals - as a function of the interaction between LMX and PE –has been recognized through using the Multivariate Analysis of Variance (MANOVA). Also, the Multiple Discriminant Analysis (MDA) has been used to test the hypotheses. Results showed that the proposed framework succeeded, empirically, in distinguishing between three different levels of job satisfaction among study population. Also, the study revealed that the existence of disparity among the interaction between the different levels of leader-member exchange and psychological empowerment is accompanied by variation in job satisfaction levels among overqualified employees in banks working in Sharqiyah Governorate. Moreover, PE is considered the most discriminating variable in interpreting the difference between job satisfaction's levels for overqualified employees compared to the perception of LMX. This study ended with results discussion, managerial implications, and limitations and future researches.