Employers Top Five Wage And Hour Violations

May 23, 2010 by wgarnett  
Filed under Wes' Blog

Misclassifying employees as exempt when they are actually non-exempt and subject to overtime pay. Employers often think that just by paying someone a salary, you can make that person exempt from overtime and avoid paying for hours worked beyond 40 a week. Paying a salary, according to the FLSA and the clarifying Fair Pay Overtime Rules of 2004, however, is just one part of the equation in granting an employee an overtime exemption. First, the employee must be paid a minimum salary a week, which currently stands at $455. Then, the employee must pass a “duties” test in prescribed executive, administrative, professional, and outside sales classifications. Someone who just answers a phone or files paperwork is not going to survive the duties test.

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Human Capital Management
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