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