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Exempt Versus Nonexempt in Overtime

May 23, 2022by People First0

This is a very common question and an area where mistakes in pay practices occur.
The Department of Labor’s Wage and Hour Division has rules in place that define what positions in a company are exempt from overtime. The decision is not the employee’s nor is it the employer’s decision. The determination of exempt versus nonexempt is based on job duties and not the desire of the individual.
It’s so important to pay individuals properly. Penalties can be hefty and worse than the penalties is the time it will take should the employer receive a visit from a DOL auditor. It’s important to know that the burden of proof is on the employer and not the employee to prove that the employee was properly paid.
Bottom line, the cost to the employer far outweighs the cost of the overtime not paid to save money.
If you have more questions, I suggest consulting with an experienced HR professional.

People First

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Copyright by People First INC. All rights reserved. 2022

2022 Copyright by People First Inc.  All rights reserved.