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When a new hire comes on board, you must determine whether to classify him or her as exempt or nonexempt under the FLSA. The key consideration: Exempt workers aren’t eligible for overtime pay. Rather, they’re paid for the job they do, not the hours they keep.

In light of recent changes to the FLSA regulations, all employers should carefully review their employee classifications. The new DOL regulations have changed the definition of who’s exempt and raised the minimum salary level that qualifies a worker as exempt from overtime. Generally, two requirements must be met before you can classify someone as exempt:

  1. You pay the worker on a salary basis.
  2. The worker holds a position with certain duties designated by the DOL as appropriate for exempt status. These positions include executive, administrative, professional, computer and outside sales as well as some highly compensated workers.

Remember: An exempt work...(register to read more)

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