Exempt/Non-Exempt...What's the Big Deal?

Consider these staggering statistics:

·        In fiscal 2011, the Labor Department recovered $225 million in back wages for employees, up 28% from fiscal 2010.

·        One in three companies has been hit with a wage-and-hour claim in the past year. 

·        Wage and hour class action lawsuits now outnumber all other discrimination suits combined.

·        The Department Of Labor estimates that more than 80% of companies are out of compliance with federal and state wage and hour laws.

·        President Obama has increased the Department of Labor’s enforcement budget.

So, the Big Deal is that the workplace environment is right for your business to get sued.  Seems like this is a good time to make sure your exempt/non-exempt employee classifications are airtight.

Under the FLSA, employees are entitled to overtime unless they're executives who:

·        manage and hire and fire employees;

·       make key decisions;

·        are considered professionals — such as lawyers and engineers — with advanced degrees, among other criteria.

Also exempt are certain information technology workers and sales representatives whose hours can't easily be tracked.

And if you use independent contractors, better review their contracts to ensure the feds won’t claim they should be classified as employees.

Exempt/Non-Exempt is a very big deal.  Take the time now to make sure your employment contracts, procedures and handbooks are an asset to you should you need them.

Protecting your business is kind of a big deal.