Online review site Yelp recently announced that it will pay workers $1.25 million to settle employee overtime claims in California and national sales, according to GigaOm. As part of the settlement, Yelp will pay workers in California $586,667 and national employees $293,333 to settle the charges.

The workers, who sold advertisements for the company's website, claim the company misclassified them as exempt employees to avoid paying for all of their employee attendance, the source reports. The Department of Labor established the Fair Labor Standards Act (FLSA) to guarantee employees receive certain benefits, such as overtime pay and minimum wage rates for their hours worked.

Daily Deal site Groupon also received notice that it was being sued by employees for overtime violations, reports Paid Content. The employee in that case was in charge of negotiating transactions between the company and retailers selling products or services on the site, the source reports.

Before employers decide to classify their employers under any exemption, they should make sure the workers' job duties fall under the provisions outlined by the FLSA to avoid violations and the potential of having to pay penalties and back wages.

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