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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 the Vice-President and co-founder of Omega HR Solutions, Inc., a consulting and services company offering complete human resources solutions. Mike brings over 30 years of experience in dealing with the challenges of Human Resources in the 21st century. He has a B.A. in Psychology from the University of California, Riverside, a master's of science in Industrial Relations from Georgia State, and is certified as a Senior Professional of Human Resources (SPHR). He has over 16 years of experience in the classroom teaching human resources fundamentals and certification preparation for multiple universities and organizations.
Mike is the author of the Human Resources blog entitled HR Observations found at OmegaHRsolutions.com, which has been recognized several times as a top 25 in human resources related blogs. He has also been named in the top 10 Digital Influencers in Human Resources. He has gained a reputation as a compliance expert. He speaks on a variety of subjects to business associations, human resource associations, and business based civic clubs. He has co-presented webinars on various HR related issues.