Overtime: Exempt v. Nonexempt - Can You Pass DOL Scrutiny?

Exempt or not exempt is the question. Especially as recently both the federal and state governments increased their enforcement of wage and hour laws. This comes as no surprize after President Obama had ordered the hiring of a significant number of new investigators to focus on this issue and nothing else.

We all know that determining whether an employee is exempt or nonexempt is very fact-specific. We can help you.

We offer an analysis using the requirements of the law. Misclassification is rampant and can cost employers thousands of dollars in civil, as well as criminal penalties.

Issues we test for you with your specific facts are:

1. General exemption tests under the Fair Labor Standards Act (FLSA): The salary test and the primary duties test
2. Application of the 5 main exempt categories
3. New trends originating from recent federal case law regarding the exempt status of employees
4. Analyze your deductions (differentiate between permissible and impermissible payroll deductions)
5. Work with your regular pay rate and check whether your calculations and formulas can lead to a conclusion
   
6. Interplay of state law with the FLSA

Contact us - better now than after you were contacted by the authorties.

Employee Afraid to Ask for California Overtime

A bookkeeper and office manager for a real estate company in California with about 30 real estate agents—she was busy. She was also paid hourly by the agency which results in one conclusion: she was not qualified as exempt.

"Her boss always worked her overtime and never paid her for it" explains her husband... and then she was fired.

While this is a real case it leads to a few questions:

1. How do you document overtime at your company?
2. Do you calculate and pay according to the law?
3. Do you plan to fire anybody who may have worked overtime?

Many more questions, but most of all... it makes sense to follow the law. Not just regarding overtime.

Please call or email if you have any questions to the applicable Labor Law, the FLSA.

Reinhard von Hennigs
bdhlaw.net



Picture (C): winnond, http://www.freedigitalphotos.net/images/view_photog.php?photogid=1970