Exempt Tag

With the Department of Labor's upcoming rule changes, church employers must prepare for the new salary threshold for exempt employees, rising to $58,656 on January 1, 2025.   However, clergy staff—those considered ministers for tax purposes—are exempt from overtime requirements, regardless of how much or...

Question:  We have an exempt employee who is going to be working part-time hours indefinitely. Do we need to switch them to hourly nonexempt or can we simply reduce their salary while keeping them exempt? Answer:  You don’t necessarily need to change their classification, but the minimum...

Question: Do managers need to be classified as exempt? Answer: No, it’s fine to classify managers as nonexempt. You are under no obligation to classify any employee as exempt, even if they meet the criteria under the Fair Labor Standards Act. You could have an entire...

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...

Question:  We have an employee claiming they shouldn't be classified as exempt from overtime. If it 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 misclassified,...

When you hire someone to work for you, the worker will likely be considered either an employee or an independent contractor. Usually, you will decide whether you want to onboard an employee or simply hire a contractor prior to advertising for the available position. That...

Question: We would like to reclassify an employee from exempt to nonexempt status. Is it okay to do this? What do we need to do to change their status? Answer: Yes, it’s possible to make this change. Any employee can be classified as a nonexempt employee,...

You can allow an employee to work two different jobs for your company. However, under the FLSA, you cannot classify an employee as both exempt and nonexempt — it must be one or the other. To know which one to use, you must first combine...