Employee Classification

This course provides payroll, HR, and other related professionals with a foundational understanding of the Department of Labor’s (DOL) employee classification rules. It covers the distinctions between exempt and non-exempt status under the Fair Labor Standards Act (FLSA), outlines the proper classification of employees versus independent contractors, and addresses the potential risks and penalties associated with misclassification. Using real-world examples, best practices, and current data points, the course equips participants with the knowledge and tools to maintain compliance and reduce legal and financial risk.

• Understand the importance of accurate employee classification.
• Recognize the implications of misclassification on payroll compliance.
• Learn best practices and utilize key data points/statistics to guide decisions.
• Consequences of noncompliance (fines, litigation, reputational damage).
• Overview of the Fair Labor Standards Act (FLSA) role in classification.

• Recognize the critical components of exempt and non-exempt employee classification.
• Understand how to accurately determine employee vs. contractor status.
• Use relevant statistics and case studies to stay alert to common misclassification pitfalls.
• Apply best practices for documentation, audits, and continual monitoring.
• Foster collaboration among payroll, HR, finance, and legal teams to ensure company-wide compliance.

•  Need to confirm proper classification to avoid back-pay and tax issues.

• Collaborate with payroll and legal to maintain compliant policies and procedures.

• Need awareness of overtime rules, recordkeeping requirements, and labor regulations.

• Should understand how misclassification can affect financial statements and tax liabilities.

• Need to be aware of classification requirements to prevent costly mistakes as they scale.

• Should understand the financial and reputational implications of proper employee classification.

• Payroll Manager / Payroll Director: Oversees payroll operations, ensuring compliance with wage and hour laws and accurate employee classification.
• Payroll Specialist / Payroll Administrator: Responsible for day-to-day payroll processing, tracking hours, and handling overtime pay.

• HR Manager / HR Director: Defines and updates job descriptions, manages employee relations, and advises on compensation strategies.
• HR Business Partner / HR Generalist: Works closely with business units to align staffing and compensation decisions with legal requirements.

• Finance Manager / Financial Controller: Monitors labor costs, forecasts budgets, and ensures accurate financial reporting.
• Accounting Manager / Accountant: Tracks wage expenses, manages payroll accounts, and flags potential classification issues that could affect the general ledger.

• Legal Counsel / Employment Attorney: Provides guidance on labor law compliance and risk mitigation; often reviews or advises on classification decisions.
• Compliance Officer / Regulatory Affairs Specialist: Develops and enforces organizational policies, ensuring alignment with federal and state labor regulations.

• Operations Manager / Office Manager: May oversee hiring, vendor contracting, and day-to-day scheduling, impacting classification decisions.
• Business Administrator / Director of Operations: Coordinates cross-departmentally to maintain compliance infrastructure.

• Chief Financial Officer (CFO) or Chief Operations Officer (COO): Champions the strategic approach to compliance, budgeting, and operations.
• CEO / President (especially in small or mid-sized businesses): Sets the overall compliance culture and is ultimately accountable for organizational risks.

• Founder / Owner: Often manages payroll and HR functions in early-stage companies, requiring a solid grasp of classification to avoid costly fines.

With over 20 years of experience across sectors like education, real estate, construction, retail, staffing, and technology, Brian Escobar is a distinguished HR and Payroll Director known for his expertise in global payroll operations, regulatory compliance, and HR management. He has led high-impact initiatives, from implementing comprehensive HCM systems and processing over 800,000 paychecks to achieving significant cost savings. A strategic leader, Brian excels in team development, process enhancement, and ensuring data accuracy across complex organizations. As the co-host of a popular payroll podcast, he shares his passion for teaching and advancing payroll best practices, consistently aligning payroll functions with organizational goals to drive productivity and sustainable growth.