Employers often misclassify employees based on not having a clear understanding of the criteria established by both state and federal government, resulting in significant cost associated with unpaid overtime, penalties and fines. The criteria for determining an employee's exempt/non-exempt status are complex and often confusing, particularly because both the Federal DOL and some states have differing requirements. Misclassifications of an employee as exempt can lead to Wage and Hour claims resulting in mandatory back pay of unpaid overtime, penalties and fines for missed rest/meal breaks in applicable states and potential departmental audits. In addition. the rules surrounding when you can and cannot make deductions from an exempt employee's salary are confusing. The federal DOL has a long list of DOs and DON'Ts.
- Identify the different 'exempt' categories and understand various concepts such as 'salary test', use of 'independent judgment' and what characterizes a 'learned professional'.
- Explore in depth the differing rules regarding vacation and sick time off and the important nuance between docking an exempt employee's salary and deducting time from sick or vacation banks.
- Discuss how ordinary business-required changes in the workplace can trigger the accidental loss of exempt status and learn how to implement the correct policies and practices that will help avoid the loss of exempt status.