FLSA White Collar Exemptions: What Employers Need to Know
Duration: 90 Minutes
Faculty: Patrick A. Haggerty Level: Intermediate Course ID: 1074
This session will review the current Department of Labor regulations as they apply to the white collar exemptions to the minimum wage and overtime requirement of the Fair Labor Standards Act (FLSA). The tests for exemption are the salary basis test, minimum salary requirement, and the duties tests. These tests have changed over the years and are complex and can be confusing. In addition, there are strict record keeping requirements and salary integrity requirements to prevent disqualification of the exemption. Penalties for non-compliance can be costly.
Both the federal Department of Labor and State Wage and Hour agencies are engaged in enforcement initiatives concerned with misclassification of employees as exempt from the Fair Labor Standards Act overtime requirements. Employers are often confused as to which exemptions may apply to a particular employee. Penalties for non-compliance can be costly.
Objectives of the Presentation:
In addition to information regarding the newly proposed rules for exempt employees, you will learn how to determine whether an employee qualifies for exemption from the FLSA minimum wage and overtime requirements. How to handle certain employee absences from work, including FLSA intermittent leave, use of paid time off for part day absences, and employer actions that can lead to disqualification.
After attending this session you should be able to:
- Distinguish between the various types of exemptions.
- Identify whether specific work activities support exempt status or nonexempt status
- Know the common misconceptions about exempt status, job titles, and salary basis
- Understand proper application of the federal salary basis test.
- Identify employer actions that defeat exemption
- Identify exceptions to the salary basis rules
- Explain why time records for exempt employees matter
Why Should You Attend:
Making sure that employees are properly classified as exempt or non-exempt can be a daunting task. Misclassification of employees as exempt can be costly in terms of back pay awards for overtime compensation. This session will discuss the ways that employers can stay compliant as well as some of the ways employers have found themselves in trouble.
Areas Covered in the Session:
- The executive, administrative, professional, and selected other exemptions
- The requirements for exemption: the salary basis, salary amount, and duties tests
- The differences in the various types of exemptions.
- Work activities that support exempt status and those that indicate nonexempt status
- Common misconceptions about exempt status, job titles, and salary basis
- Proper application of the federal salary basis test.
- Employer actions that defeat exemption
- Exceptions to the salary basis and salary amount rules
- Why time records matter
Who Will Benefit:
- Payroll Supervisors and Personnel
- Payroll Consultants
- Payroll Service Providers
- Public Accountants
- Internal Auditors
- Tax Compliance Officers
- Enrolled Agents
- Officers and Managers with Payroll or Tax Compliance Oversight
- Company / Business Owners
- Managers/ Supervisors
- Public Agency Managers
- Audit and Compliance Personnel / Risk Managers