Over the past two years, the use of artificial intelligence (AI) by employees—especially within white-collar professions—has surged, with nearly twice as many workers now relying on AI tools for a portion of their daily tasks.¹ This rapid growth is transforming routine workflows and the very contours of job responsibilities, as professionals leverage AI not only for analysis and reporting, but also decision support and automation of complex processes. While responsible AI use in the workplace may mean more efficiency and accuracy, it can also complicate employee classification under the Fair Labor Standards Act (FLSA). This alert considers how the integration of AI with an employee’s job duties may impact a position’s FLSA overtime exemption status.

FLSA Overtime Exemptions

All US employees must be classified as either “exempt” or “non-exempt” from the overtime pay requirements of the FLSA.² If an employee is “non-exempt”, they are entitled to minimum wage and overtime pay for hours worked in excess of 40 in a workweek. To qualify as “exempt”, employees must satisfy the FLSA’s salary threshold³ and meet certain tests regarding their job duties. For example:

• The administrative exemption requires, among other things, the exercise of independent judgment and discretion over matters of significance;
• The executive exemption requires, among other things, authority over personnel decisions, such as hiring, supervision, discipline, promotion, and termination; and
• The learned...

Read Full Story: https://news.google.com/rss/articles/CBMiiwFBVV95cUxNUmZnUFU5ZzU0ampaVk1BQmtC...