Correct employee classification is key to correct compensation
Employee classifications are more significant than simply giving a position a better title to attract more qualified candidates or boost its professional appearance on a resume. The Fair Labor Standards Act (FLSA) has very strict requirements regarding the way employees are classified, from the amount of pay they receive for their time and attendance to the scope of the tasks they actually perform on a daily basis.
Classifications are a serious consideration in the FLSA because it's one way the Department of Labor ensures employees receive the pay they have rightfully earned. If positions fall under an exemption, employers do not have to pay for overtime work. However, businesses that falsely or mistakenly classify their employees in positions that qualify for exemptions can face penalties and be ordered to pay back wages if they have not been issuing workers premium rates for hours worked in excess of 40.
In a concerted effort to crack down on these incidents, a number of states have aligned with the DOL to identify employers who might be committing these violations. Oregon, California, Utah, Colorado, Montana, Minnesota, Illinois, Missouri, Louisiana, Maryland, Connecticut and Massachusetts have all agreed to participate in this effort.
Employers that want to bring their payroll practices into compliance should invest in a timeclock or another timekeeping system that allows them to accurately track employees' work time.
Classifications are a serious consideration in the FLSA because it's one way the Department of Labor ensures employees receive the pay they have rightfully earned. If positions fall under an exemption, employers do not have to pay for overtime work. However, businesses that falsely or mistakenly classify their employees in positions that qualify for exemptions can face penalties and be ordered to pay back wages if they have not been issuing workers premium rates for hours worked in excess of 40.
In a concerted effort to crack down on these incidents, a number of states have aligned with the DOL to identify employers who might be committing these violations. Oregon, California, Utah, Colorado, Montana, Minnesota, Illinois, Missouri, Louisiana, Maryland, Connecticut and Massachusetts have all agreed to participate in this effort.
Employers that want to bring their payroll practices into compliance should invest in a timeclock or another timekeeping system that allows them to accurately track employees' work time.
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