Legal Blog

Telebriefs®: How to Properly Classify Employees as Exempt vs. Non-Exempt


 JP Morgan recently announced that it agreed to pay a group of Assistant Branch Managers $16.7 million to end lawsuits in which the company was accused of misclassifying these employees as overtime exempt. Facebook has also recently been hit with a lawsuit related to misclassifying employees and depriving them of claimed overtime. Classifying employees can seem simple but, as seen with these two large companies, it is too often mishandled by employers and can have enormous financial consequences. The Department of Labor (DOL) finds that many employers have problems following the statutorily established salary and duties tests to determine whether employees should be classified as exempt or non-exempt. The salary test will likely be increased from the present level to somewhere in the $30,000 to $35,000 range. As for the duties test, there are established rules which must be followed in order to satisfy the DOL’s regulations under the white collar exemption. To learn more about these three rules and how to apply them within your organization, listen to this week’s Telebrief here.

Also in this week’s Telebrief: The Save Local Business Act and the intersection of trade secret law and confidentiality agreements.

 

Questions about arbitration agreements, class action waivers, or other topics from this week’s Telebrief?

 

Contact Howard at hkurman@offitkurman.com or 410-209-6417

 

 

About the Telebriefs®

The Telebriefs® are 30-minute, information-packed phone calls geared towards executives, HR directors, supervisors, managers, and business owners. Join Howard K. Kurman, as he discusses employment law developments occurring over the past two weeks that will most significantly impact employers nationwide. These twice-monthly phone calls are an easy way to stay current and compliant with the latest employment law developments that will significantly affect you and your company. The goal is to provide information and insights to help executives stay current with the latest workplace law developments and in front of trends, to enable proactive policy-making and management. Our guarantee: You will learn something useful, on every call!

ABOUT THE PRESENTER

Howard Kurman Casual-Smallhkurman@offitkurman.com | 410-209-6417

Howard K. Kurman is an employment attorney. 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. Mr. Kurman offers advice on employee handbooks, employment agreements, and covenants not to compete as well as confidentiality and non-disclosure agreements. Previously, Mr. Kurman was the chair of the firm’s Labor & Employment Practice Group.

You can connect with Offit Kurman via our Blog, Facebook, Twitter, Google+, YouTube, and LinkedIn pages. You can also sign up to receive Law Matters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.

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