Correctly classifying employees as exempt or nonexempt under the Fair Labor Standards Act (FLSA) is more than a compliance checkbox, it’s a critical step in managing wage and hour risk. Misclassification can lead to costly litigation, back pay obligations, and reputational damage.
Employers should regularly review job duties and salary thresholds to ensure alignment with FLSA standards. This is especially important as remote work, evolving roles, and state-specific laws add complexity to classification decisions.
Read the full article on HR Dive for a closer look at the latest guidance and best practices.
As a labor and employment law attorney, misclassification is by far the most common mistake I see day in and day out. And classifying a nonexempt employee as exempt — whether deliberately or not — can be costly.
