Yes. In professional settings that means with that degree you can expect a certain salary, and the position pays considerably less.

Colloquially it's also used for: You'll be bored with a task. Or waste your potential.

That’s what it is at my work. I had a req opened for an early/mid career position (say a BS plus 6 to 10 years of experience). I had a number of applicants who had 30+ years of experience. They’d qualify for two or three job codes higher than the position I had, with significantly higher salary. It just doesn’t make sense to hire like that.