Taking the Guess Work out of Identifying and Paying Exempt Employees
OVERVIEW Although payroll rarely makes the decision on which employee is classified as exempt it is critical that they understand the regulations regarding how the determination should be made. And it is even more critical that the payroll department understands exempt employee rights and applies strict rules for paying employees who are classified as exempt. The department must ensure that all exempt employees are paid on a salary basis and that no exempt employee’s wages are docked improperly. The new salary level under the Obama Administration has been ‘shot down’ by the courts but that doesn’t mean the battle is over! The current Secretary of Labor has started the ball rolling to review the salary level and the job duties tests. Where that will lead is anybody’s guess but employers need to be ready for whatever comes! Remember the penalties for errors apply to both the classification of the worker and the actual payment of salaries when it comes to exempt emplo...