Legal Blog

Telebriefs®: Exempt vs. Nonexempt Employees

How to legally classify and manage your hourly and salary employees

salaryOver the last six months, employers and employer groups have been up in arms about the Department of Labor’s proposed revisions to the so-called white-collar exemptions.  This intended revision will disrupt how employers classify their salaried and hourly employees as either exempt or nonexempt.  Specifically, the present salary test for an exempt employee would raise from $455 a week (about $24,000 a year) to at least a proposed level of $970 a week (about $50,000 a year) by 2016.  If this change occurs, it is important to recognize both the legal and employee morale implications.  For example, legally it will require to reclassify a previously exempt employee with a yearly salary of $35,000 to a nonexempt employee with an hourly wage.  Not only does this mean the employer will will have to track the newly nonexempt employee’s hours, it will also result in numerous changes to their actual and perceived employee benefits.  So what are the effects on employee morale that come with this revision?  Listen to this week’s Telebrief to learn more. Also discussed in this week’s Telebrief:  Government antidiscrimination laws and their effects on your workplace

To read more or to listen to the Nov 25th Telebrief, or to listen to past telebrief segments, please click here.


Geared to executives with employee relations responsibilities (HR directors, supervisors, managers, business owners), Labor and Employment Telebriefs® are information-packed 30 minute briefings via the telephone. Telebriefs® provide information and insights to help executives stay current with latest workplace law developments and in front of trends so as to enable proactive policy making and management . On the 2nd and 4th Wednesday of each month, from 9 – 9:30 am ET, join Offit Kurman Labor & Employment Chair Howard Kurman, as he discusses developments occurring over the past two weeks that will most significantly impact employers nationwide. The focus is squarely on the practical. Why is this event significant for employers? What are the lessons to be learned or actions taken? These twice-monthly teleconferences are an easy way to stay current and compliant with the latest Labor and Employment law developments that will significantly affect you and your company.  Our guarantee: You will learn something useful, on every call! If you have any questions regarding  labor and employment issues please contact Howard Kurman: | 410.209.6417


Howard Kurman website Howard K. Kurman is Chair of the firm’s Labor & Employment Department. Mr. Kurman regularly counsels clients on all aspects of proactive employment/labor issues. He represents employers ranging in size from as small as 20 employees to those employers with geographically disparate locations consisting of over 4,000 employees. Mr. Kurman assures, through regular contact with his clients, that they promulgate and maintain the most effective employment policies that will, to the extent possible, minimize their legal exposure in today’s litigious workplace. You can also connect with Offit Kurman via FacebookTwitterGoogle+YouTube, and LinkedIn.