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Exempt. Non-exempt. Who’s Got Time to Worry About That FLSA Stuff?

Posted on: January 3rd, 2013 | Category: Employment Administration, Government Regulatory & Compliance Issues, Human Resources, Our Blog

READ AND TAKE NOTE: Anyone who wants to avoid the severe penalties that Uncle Sam will throw at you if you blow off the rules, should find time to worry about that FLSA stuff.

exempt vs. nonexempt status and penalties for misclassificationRunning a business well is no cakewalk. It’s hard work, and good employers and managers wear many hats these days to make success happen. We know and respect that.

Because you are doing so much all the time, we also know that  seemingly minor tasks like verifying how to properly classify your employees under the Fair Labor Standards Act (FLSA) as either Exempt or Non-Exempt, may not be the highest priority on your long to-do list. Unfortunately, the government requires that this is done right. If it’s not, the consequences you could face for incorrectly classifying employees may make you think twice.

Penalties/Sanctions

Misclassification of employees is one of the most common FLSA mistakes made by employers, and the number of FLSA violations continues to increase each year, despite the serious penalties. If you are found to be in violation of the FLSA, you may be:

Required to make immediate changes to employment practices to remedy FLSA violations

Required to pay double the back wages due to employees for:
➤  Overtime that was not paid for

 Time that was not compensated for
Criminally prosecuted
Imprisoned
Required to pay penalties of up to $1,100 per person per violation for repeated violations

Not good. And that doesn’t even take into consideration the negative publicity that your company and its brand would face for getting caught and penalized for incorrectly compensating your employees. Often times no matter what the size of your organization, these infractions  make  local news publications.

FLSA Assistance

To read more about FLSA, visit the Department of Labor’s Fair Labor Standards Act Advisor page. If you are still unsure whether the FSLA applies to your company or not, an HR specialists can help. At hireVision, we have a team of human resources professionals who can help you properly classify your positions so that they are FLSA compliant. We can also help you set up systems and processes that can streamline how your employees keep track of their time, so that your company runs more efficiently and is better prepared to handle disputes, should they arise.

Need more help to manage your HR functions?

hireVision provides human resources outsourcing services that help you navigate those tricky compliance issues and build better employee relations at the same time. If you are looking to outsource hiring or implement strategic hiring initiatives, we can help you with that too. Contact us today for more information about the benefits of outsourcing HR functions, what HR outsourcing can do for your business in particular or about any of our many HR DirectLink services.

Deanna Foulke, HR Assistant hireVision Group, guest blogger

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