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Change Exempt Status To Non-Exempt Status Without Violating The FLSA

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Given the Department of Labor's (DOL) increased focus on enforcing wage and hour laws (the agency announced in November that it has increased its staff by more than one third by hiring 250 new wage and hour investigators), and the high price of losing a wage and hour lawsuit (in one case, a company agreed to pay $517,000 to 60 misclassified workers), auditing employees' exempt classifications is a smart move.


But what happens if you discover that an employee has been misclassified? What steps should you take to correct their status without sparking a Fair Labor Standards Act (FLSA) claim? (Note: State laws may vary.) For answers, we went to Morris Jennings, a consultant in Austin, TX (, who is a former DOL Wage and Hour Division investigator. He warned that "the resolution of possible misclassification issues is complicated, and employers should not attempt this without expert guidance. It is n...(register to read more)

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Liz Hopkins August 6, 2013 at 10:43 am



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