Under-compensation as the result of employee misclassification has come to forefront of labor rights discussions. In fact, there is now a nation-wide initiative to crack down on these incidents. California, Washington, Montana, Minnesota, Utah, Colorado, Iowa, Missouri, Illinois, Louisiana, Massachusetts, Maryland and Connecticut have all signed on as part of the effort to ensure employees are paid the wages they deserve for their time attendance.

Examples of these incidents are employers who fail to pay their office employees overtime because they considered them exempt as administrative workers. In many cases, this is simply because they do not understand the specific provisions included in the Fair Labor Standards Act (FLSA) that dictate who can be covered by the exemption.

If employers are uncertain whether their employees are actually exempt as administrative employees, they can ask themselves three questions:

1. Are employees paid a salary that exceeds $455 per week?

2. Do their main job duties include non-manual office labor that contribute to the business' overall goals or help the firm's customers perform processes?

3. Are they regularly expected to use their discretion and authority over significant matters that relate to the business (i.e. evaluating the work they are asked to perform and make independent decisions that are outside the direction or supervision of management)?

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