According to the Department of Labor, nearly 70% of employers are not in compliance with the Fair Labor Standards Act (FLSA). And here’s one area that’s tripping employers up: not paying overtime to employees because they are incorrectly labeled “exempt professionals.”
Many employers think that if a job title sounds professional and its duties require expertise and a high degree of skill, then it must qualify for a professional exemption. Our partner at Fisher & Phillips remind us that this is not the case and employers who do not correctly classify their employees could be in big trouble. When you read “Using the Duck Test For Professional Employees,” you’ll find out what the criteria the Department of Labor recognizes and what common pitfalls employers are making. Click here to read the article.
For additional information, please read chapter 8 “White collar exemptions” in our Wages and Hour Guide.