Classification Tag

Employee classifications are based on job duties and responsibilities. The classifications impact compensation, benefits and work hours; they are also used by employers to maintain compliance with labor laws. The most common classifications are exempt and nonexempt. Exempt employees are typically salaried workers who (a) are paid the same...

Question:  We have an employee claiming they shouldn't be classified as exempt from overtime.  It if turns out they're right, what are the penalties for misclassification? Answer:  The cost of misclassification can be steep and will depend on several factors, such as how many employees are...