Status Classification: Exempt vs Non-exempt Webinar
Correct employee classification is essential. Avoid lawsuits and learn how to navigate the complex rules of the Fair Labor Standards Act. Employees and their attorneys continue to pursue overtime claims based on the alleged misclassification of exempt workers at a fever pitch. Last year, over 10,800 complaints to the Department of Labor were found to have violated overtime regulations and resulted in over $171,000,000 in back wages paid out. This is nearly 25% increase from the prior year!
Many thousands of DOL complaints and thousands of lawsuits asserting violations of the Fair Labor Standards Act or parallel state laws are filed each year, and the costs of defending these claims, whether through trial or settlement, are staggering. The cases frequently involve individual and class action claims that employers have misclassified employees to cheat them out of their rightful pay.
Objectives of the Presentation
In-depth review of the Fair Labor Standards Act
Analysis of how the rule changes on overtime could impact employers
Step by step process of how to classify employees under the FLSA
Understanding the salary test
Understanding the duties test
Understanding of the exemption categories and how to apply them including:
Executive Exemption: what is management and how many employees must the executive supervise
Administrative Exemption: what is management or general business operations and what is discretion and independent judgment
Professional Exemption: who is a learned professional and who is a creative professional
Computer Employee Exemption: what makes certain of computer professionals exempt and how is their salary test different
Outside Sales Exemption: what are the requirements and how much do they have to be paid
Highly Compensated Employees: how does their salary get calculated
Other exemption rules: who is automatically covered and who is excluded by rule
The importance of a compliance review
Potential liability for non-Compliance
Why Should you Attend
Your employees will either be classified as exempt or non-exempt and this classification affects how you compensate them.
To stay in compliance with the FLSA, you will need to designate your employees as either exempt or non-exempt from the moment they are hired, and knowing how to classify employees is crucial to the well-being of your employees and your business. With all the coverage of the proposed changes in the Wage & Hour classification rules, there has never been a better time to address these issues.
The misclassification of employees has been a hot topic with the IRS and the Department of Labor for years. Efforts to identify and audit employers who classify workers as exempt from minimum wage and overtime payments have been ramped up. The IRS and the Department of Labor have ramped up their investigations over the past few years and both agencies have made their positions very clear that employers who fail to pay employees all of the wages due to them risk steep penalties.
If your business received a visit from one of these agencies tomorrow would your employee classifications pass the tests? Do you know which tests to administer? If you determine an employee has been misclassified, what will you do? This webinar will help you answer these questions and many others with confidence.
General Principles under the Fair Labor Standards Act, and Similar State Wage and Hour Laws.
Understanding and Complying with the Basic White-Collar Exemptions
The executive, administrative, professional and computer professional duties tests
Salary requirements and the highly compensated employee exemption
The salary basis test
Understanding and complying with other overtime exemptions, including the outside sales, retail sales and service, recreation and amusement, domestic worker and motor carrier act exemptions.
What can an employer do to assure classifications are accurate and to minimize the risks?
Most workers are classified as either exempt or non-exempt depending on their salary and the type of work they do. The federal Fair Labor Standards Act (FLSA) requires that in addition to paying at least the minimum wage employers also must pay overtime to employees who work more than 40 hours in a given workweek, unless they meet certain exceptions. To complicate matters further, many states have wage and hour laws that may have more requirements than the FLSA. Employers must make sure they abide by both federal and state wage and hours laws to avoid legal trouble.
Who will Benefit
Employers, HR Professionals, Payroll Leads/Supervisors/Managers, C-Level Executives, Chief Financial Officers, Operations Leads, Office Managers, Department Supervisors/Managers, Accounting Professionals, Store Managers, Personnel Schedulers