Exempt vs Non-Exempt Employees: Understand the Difference and Prepare for Changes

The United States Department of Labor (USDOL) continues to make labor protections and wage requirements a legislative and operational priority.  Governed by the USDOL, the Fair Labor Standards Act (FLSA) regulates the classification of employees who are exempt, or not exempt, from overtime.  These guidelines are specific to work performed and the wages paid.  The USDOL is re-examining salary and duty requirements, with changes expected this year.  In addition to federal compliance, employers must ensure they are current with state and local requirements.  The ramifications of misclassifying employees are far-reaching and often expensive.  Employers should review current roles and wages and prepare for any changes.

• How to determine the exempt status of an employee 
• The differences between salary, salary non-exempt, and hourly
• The impact of bonuses and other supplemental wages on the calculation of overtime 
• The financial and workforce management impact of misclassifying employees 
• Best practices for remaining compliant 

• We will review a checklist to assist employers with determining the exempt status of a position or role
• We will review wage requirements for exempt employee classifications
• We will review the calculation of overtime for salary non-exempt and hourly employees
• We will review the best practices and due diligence required to remain compliant

The USDOL, as well as individual states and some locals, have specific guidelines for determining if an employee is exempt or not exempt from overtime.  Back wages, penalties, and interest are just some of the ramifications employers face if employee positions are misclassified as exempt.  We will review the distinct requirements at the federal level and highlight some specific state nuances so employers can ensure they are compliant with the guidelines and ready for any changes that may occur.

• Human Resource & Payroll staff.
• Owners.
• Accountants.
• Recruiters and Managers.

Tricia has more than 25 years of experience in all aspects of workforce management (payroll processing, taxation, employee handbooks, human resources, benefits, etc.). Tricia is a Payroll and Human Resource “nerd” who enjoys reading Internal Revenue Code.  

Now for the “street cred.” Tricia has a Bachelor of Science in Management Studies from the University of Maryland University College. She is a Certified Payroll Professional (CPP) through the American Payroll Association (APA), a Senior Professional in Human Resources (SPHR) through the HR Certification Institute, as well as a Society for Human Resource Management Senior Certified Professional (SHRM-SCP).  

For the National American Payroll Association, Tricia is a Member of the National Speakers Bureau and a Contributing Writer to Paytech Magazine, a regular periodical provided to over 20,000 Members.  

For the Susquehanna Valley Chapter of the American Payroll Association, Tricia has taught for both the Payroll and Human Resource Certification Study Groups and has served as both the Vice President and President of the Chapter.  

She also served on the Program Committee of the Human Resource Professionals of Central PA and is the Treasurer of a York County Pennsylvania Non-Profit Association.