How To Determine Whether An Employee Is Exempt From Overtime Pay
Properly determining whether employees are exempt from overtime pay is critical to any business. Private lawsuits to recover unpaid overtime are on the rise, and compliance with the overtime laws continues to be an enforcement priority for the U.S. Department of Labor and cognate state agencies. Violators may be required to pay penalties, multiple damages, and the prevailing party’s attorney fees, and business owners and those with authority over payroll decisions may be subject to individual liability, as well as criminal prosecution. As such, noncompliance poses severe risks for the employing entity and its leadership team. To assist businesses with their compliance efforts, this article explains how to determine whether an employee may be designated as exempt from overtime pay.