Share on LinkedInShare on LinkedIn

ARTICLE · 01 MAY 2014

Misclassification Can Lead To Big Trouble

Fox Rothschild LLP
Fox Rothschild LLP
Contributor
Explore more from Fox Rothschild LLP

We often blog about how important it is for employers to carefully evaluate their practices to ensure they are not misclassifying employees.

United StatesEmployment and HR

We often blog about how important it is for employers to carefully evaluate their practices to ensure they are not misclassifying employees who are legally non-exempt, as exempt employees, and failing to pay them overtime. 

A large national shipping company was ordered to pay $2 million dollars to settle managers over time claims after it violated the FLSA when it mislabeled line-haul service managers as exempt from overtime and failed to pay them for the time they worked beyond 40 hours a week.

The argument against classifying the employees as exempt was based on employers' common misperception of how to classify employees.  It's important for employers to know how to do it... The FLSA advises that some jobs are classified as exempt by definition.   For example, "outside sales" employees are exempt ("inside sales" employees are nonexempt).  For most employees, however, whether they are exempt or nonexempt depends on (a) how much they are paid, (b) how they are

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from