Misclassified As Exempt: A Classic FLSA Overtime Mistake — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Misclassified As Exempt: A Classic FLSA Overtime Mistake

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in Office Management

Companies often make the mistake of bestowing exempt status on anyone who has management-related duties. Just because an individual is called a "manager" and has some discretion to perform their job does not necessarily mean they are truly exempt. In order to ensure your managers are correctly classified, you need to evaluate whether their management-related duties actually fit one of the exempt classification tests under the federal Fair Labor Standards Act (FLSA). Incorrectly classified managers could be entitled to big bucks in back overtime pay.

 

How Much Authority Does A Manager Need?

Example: Grocery store managers claimed they were not exempt employees because they spent almost no time performing managerial tasks; instead, their main duties revolved around customer service, cleaning, and sales. They also claimed they lacked real authority over their stores and employees, and were required to consult with t...(register to read more)

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