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Misclassified As Exempt: A Classic FLSA Overtime Mistake

by on
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.

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