06/30/2021
Are your employees classified correctly? For an employee to be exempt from overtime, you must meet the DOL's exemption criteria. Here is what is not always understood... you must meet ALL of the criteria, not just one. Kathleen and I have more conversations with confused clients regarding exempt vs. non-exempt than any other topic.
Big penalty close to home... I don't know all of the facts in this (expensive) decision by the DOL, but I see that a manager was changed from hourly non-exempt to salary exempt but must not have met the DOL's criteria for exempt and according to them, is owed overtime. Now, typically managers fit under the executive exemption. Are they just titled as a manager and their job functions don’t meet the standard? Do they get paid below the threshold of $684 a week? I don’t know, but this got our attention….
If you find this topic confusing, give us a call. We can help.
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