Assistant Managers – Wage Exemption – Misclassification

n Under FLSA, employees are put in a category as either exempt or nonexempt employees, based on the minimum wage standard and overtime pay. Nonexempt employees are paid at least the minimum hourly wage for every hour worked, and they must also be paid overtime dues if they have worked more than forty hours per week. On the other hand, some exemptions deviate from the minimum wage and overtime pay standard. These are employees that meet specific duty tests, but most of the time, employees are nonexempt. Misclassifying employees as exempt to avoid overtime pay violates the FLSA standard, and there is government enforcement.
What Are The Red Flags That Reveal That You Are Misclassified? 

  • Hourly Pay

For employee exemption and computer industry, the federal law suggests that exempt employees should be paid $455 every week for the work which they’ve done. Still, under the executive, professional, and administrative exemptions, all employers are not allowed to pay employees on an hourly basis. In the computer exemption, all employee’s wages must meet the minimum standard or should receive a minimum hourly rate of $27/hour; some states might have different requirements, so you should check with your state so that you understand how things work.

  • When Less Than $455/Week Because You’re Part-Time

According to the FLSA, professional, executive, and administrative should receive a minimum of $455/week (some states have a higher standard), whether you’re working full time or part-time. According to FLSA, if you’re paid less than $455/hours, you have to be classified as nonexempt and have to be compensated for overtime when you work for more than 40 hours/week.

  • Duty Test Was Not Conducted

Some employers without conducting the duty test they’ll just go ahead and classify an employee as exempt; they believe as long as the employees are paid the minimum wage, he can be categorized as exempt. Before an employee is classified as exempt, he must undergo a salary and duty test. Each exemption has a different duty test; failure to conduct a duty test will result in misclassification. As an employee, your duties and responsibilities might change over time, and this means the duty test should be conducted again, so you are in the right category.

  • Employer Used Job Title To Put You In Exempt Status

Your job title has nothing to do with whether you’re exempt or not if you qualify for the duty and salary test. Employees that meet overtime requirements are classified as nonexempt and should be paid the minimum hourly rate standard in their state.

  • Employee Is Involved In Manual Labor Only

Exemptions don’t apply to manual workers or laborers; it also doesn’t apply to employees that perform a repetitive task using their hands, either using physical skill or energy. Examples of employees that shouldn’t be considered as exempt include; carpenters, mechanics, ironworkers, plumbers, electricians, longshoremen, operating engineers, craftsmen, laborers, and construction workers.

  • Classifying Employees As Exempt Automatically Because They Have a College Degree

Just because you have a degree doesn’t automatically qualify you as exempt, it’s not an indication that you are eligible for duty test of professional exemptions. Aas exempt his primary duty has to involve advanced knowledge in any science field where there is specialized academic training that is necessary before acquiring such skill.

  • Your Employer Hasn’t Considered The State Exemption Standard

Even though FLSA standards are used when it comes to categorizing employees, some states have their own exemption tests, and they should be considered prior to the FLSA standard, some states have higher standards than FLSA, employers should find state laws that govern exemptions before making decisions on any employee. If, as an employee, you have satisfied the only federal test, not a state test, you’re entitled to overtime pay in all situations that are covered by your state law.

  • Making Deductions for Exempt Employees That’s the Same with Nonexempt Employees

Generally speaking, exempt employees must be paid in full for their salary in any given week; there are, of course, some situations where these deductions are permissible, like when the employee is absent from work due to personal reasons.
If you believe you have placed in the wrong status and you need legal assistance, please contact us Massey & Duffy so that we can help you with the matter.


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