Protecting Your Salaried-Exempt Status

The Department of Labor changed the rules for salaried-exempt employees. Employers made major efforts to examine, adjust and properly classify exempt positions. 

HOWEVER, that is just the starting point. Once you have a salaried employee classified as exempt from overtime, don't undo it and make a mistake which turns that exempt salaried employee into a non-exempt worker. Employers make mistakes which undermine the status and cause liability for the employer. The major liability comes after having properly established a position as salaried and then losing the exemption by careless practices or unwitting treatment of those positions. Improper deductions, salary alterations, time off, discipline and more can result in loss of the salaried-exemption for one person, or for all of your salaried positions, and cause millions in liability. The Fair Labor Standards Act can impose that liability not just on the organization, but personally against the assets of supervisors, HR managers, CFOs, CEOs, and board members.

A focus on only the new salary requirements can be a big mistake. One must also preserve and protect the salaried status once it has been properly established.