Exempt Or Non-Exempt? Proper Worker Classification Under The New FLSA Regulations

It is anticipated that the new rule will become effective in 2024, so employers need to be prepared for these changes. The proposed rule makes significant changes in which of your employees will now qualify to be “exempt” and therefore not be entitled to overtime. Employees who were previously classified as exempt will now need to be reclassified to non-exempt employees and will then be entitled to overtime. Employers need to be prepared so you will be able to properly classify employees as Exempt or NonExempt, under the new FLSA overtime Rule.

Employers must ensure that their employees are not improperly classified as exempt when they are really nonexempt. In the event of an employee lawsuit or an audit by the DOL, employers will be required to substantiate their reasons for classifying a particular employee or employee as exempt. In addition to enforcement action by federal and state departments of labor, improper classifications have resulted in many collective action lawsuits by groups of employees, many of which have resulted in multimillion-dollar settlements.

This webinar will also go through in-depth the proper way to classify your employees as exempt vs. non-exempt based on the current FLSA regulations. We will show you to ensure compliance with current FLSA overtime rules, including the current and new FLSA regulations, and explain the changes that employers need to understand and comply with.

We will also review state laws that go beyond the FLSA exemption tests, so you can properly classify your employees working in those states.

Deciding between exempt and nonexempt: Classify employees incorrectly and it will cost you big time it may even land you in court!

If you’re confused about which employees are exempt and which are nonexempt, you’re not alone. Many companies are making costly classification mistakes and are paying a hefty price in back pay and lawsuits. As an HR professional, you’re probably well aware of the burden of making sure your employee classifications are accurate.

Major Topics Covered:

• The DOL’s 2023 proposed overtime regulations and changes in exemption criteria
• Methods for properly classifying your employees based on the Rule revisions 
• Understand how to properly classify employees based on the overtime rule revisions to the FLSA
• The three DOL Tests of Exempt Status that must be met: the Duties, Salary Basis, and Salary Level Tests
• How the Salary level test has been raised under the proposed 2023 FLSA Final Rule
• Understanding the “duties tests” and how to meet FLSA requirements for the Executive Exemption, the Administrative Exemption, the Professional Exemption, Computer Professional Exemption, and Outside Sales Employee exemptions.
• How to identify and change a job’s classification based on these new rules?
• Problematic pay practices that may put an employee’s exempt status at risk
• The Importance of a Compliance Review.
• How do California and other states’ rules differ from the FLSA?
• Q&A Session

On August 30, 2023, the Department of Labor (DOL) proposed to significantly increase the minimum salary level to qualify for the "white collar" overtime exemptions under the Fair Labor Standards Act (FLSA). Understanding these new proposed regulations is critical for employers, as it will likely require them to make changes to remain compliant.