FLSA Overtime Exemptions: Are Your Employees Properly Classified?

Most employers are subject to the Fair Labor Standards Act (“FLSA” or “Act”) as covered enterprises.  As of January 1, 2020, the Department of Labor revised its regulations located at 29 C.F.R. Part 541 to raise the salary required for an employee to qualify for the most common exemptions from the Act’s overtime requirements to $684 per week, instead of $455 per week required previously.  Although the FLSA is enforced by the Department of Labor (“DOL”), an employee can choose between submitting a complaint with the DOL for investigation or filing a claim in a court of law.  Because the risks of incorrectly applying an overtime exemption can be costly, it is important to understand the more common overtime exemptions, and to recognize some common problems that employers face when attempting to determine who is exempt and how to handle exempt employees.  


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