A particularly tough mistake for businesses to rectify is the misclassification of employees, falsely believing that a worker who should be paid hourly under the regulations of the Fair Labor Standards Act qualifies as a salaried staff member.

A prominent car rental company is facing a lawsuit from employees across the country over the misclassification issue, according to legal source Courthouse News Service. The plaintiffs claim they spent too much time performing duties that don't fall under any FLSA exemption to qualify as salaried employees who are exempt from hourly pay and overtime requirements. The current and former staff were excepted from such time and attendance tracking and pay requirements under the FLSA's executive designation.

Although the workers met a number of the rules listed for the executive position stipulation, the law requires satisfying all of the qualifications. The plaintiffs stated that they spent too much time performing non-managerial work to be listed as executives.

Companies looking to avoid litigation over employment issues should carefully determine the status of each and every employee and use a leading attendance tracking software to create records for all non-exempt workers.

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