One of the chief concerns for any employer is determining the proper exemption status of its workers to ensure compliance with federal, state, and local wage and hour laws. Getting the exemption status of an employee wrong can lead to prolonged litigation and hefty penalties. Institutions of higher education (IHEs) can face particular challenges in this area, given the wide range of jobs that workers on campus perform. Accordingly, it is important that all IHEs be familiar with the factors that must be weighed when determining exemption status under the Fair Labor Standards Act (FLSA) to best mitigate the risk of lengthy and costly litigation.
Exemption Status Under the FLSA
The FLSA, among other things, establishes the minimum wage and overtime regulations for employers in the United States. The FLSA dictates that employers must pay their employees no less than time and one-half their regular rate of pay for any hours worked in excess of 40 hours in a given workweek, unless the employee falls under an exemption. Generally, to qualify for an exemption, an employee must satisfy two tests: (1) the employee must be paid on a salary basis at a rate not less than $684 per week, which is not subject to reduction based on the quality or quantity of work (“salary basis test”), rather than, for example, on an hourly basis; and (2) the employee’s primary duty must involve the kind of work associated with the exempt status sought, such as executive, administrative, or professional...
Read Full Story:
https://www.jdsupra.com/legalnews/working-overtime-considerations-for-8205733/