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What does being “exempt” mean under the Fair Labor Standards Act is a question often asked by employers. The topic is confusing and employers make potentially costly mistakes in how they classify employees. With new requirements becoming effective January of 2020, it is essential that each employer understands what it means to be classified as an exempt employee. It is not as simple as the method you use to pay people. It is a matter of how you pay, how much you pay and whether the employee is performing the right job functions.
Misclassifying an employee as an exempt employee can result in the employer being sued and fined by the Department of Labor, often with settlements cost well over a $100,000.
Michael D. Haberman is a consultant, speaker, writer and teacher. He is President of Omega HR Consulting, a consulting and services company offering complete human resources solutions. Mike brings 35+ years of experience in dealing with the challenges of Human Resources in the 21st century. He has a Master's in HR and is certified as a Senior HR professional. He has over 18 years’ experience in the class room teaching human resources fundamentals and certification preparation.
Mike is the author of the Human Resources blog found at OmegaHRConsulting.com , which has been recognized as a top human resources related blogs. He has also been named a top Digital Influencer in Human Resources.
Mike has gained a reputation as a compliance expert and as an HR futurist. He speaks on a variety of subjects to business associations, human resource associations and business based civic clubs. He has presented numerous webinars on various HR related issues.