Common Employee Classification Mistakes Made by Employers

Do you think that as an employer you have the right to classify an employee as exempt just because you want to?  Employers do not have the right to classify an employee as exempt or non-exempt simply because they do or don’t want to. Employees must meet all of the FLSA requirements in order to be classified as exempt.  Do you think that because you pay an employee salary that this automatically means that they’re exempt?  Employees being paid salary should never be assumed to have automatically met the requirements to be classified as exempt. An employee being paid salary is only one of the FLSA requirements that must be met.  Do you think that the employee’s job title automatically makes them exempt or non-exempt?  Although exempt employees have common job titles from employer to employer, they still have to meet all of the FLSA requirements. Are they salaried? How much are they paid? What are their respronsibilities? Do you think that the employee’s job description automatically makes them exempt or non-exempt?  It doesn’t matter what the job description states or how the employer worded the employee’s responsibilities. What matters is whether or not the employee truly exercises the *required responsibilities clearly defined by the FLSA.  *One of the most common mistakes made by employers:  Employers assume that an “administrative employee” automatically qualifies for the exempt classification. TIP – The administrative employee is non-exempt unless they meet the following FLSA responsibility requirements (as well as the other FLSA requirements): Exercises substantial discretion Has decision making authority    Trend has created an Employee Classification Series and Checklist to reference when determining whether an employee should or shouldn’t be classified as exempt. These resources can be found under the following: Resources - Online Training - How to Classify Employees Correctly Series