Are you clear on the federal pay rules for compensating overtime correctly so your firm isn’t confronted with audits, back pay, and fines?
Paying employees overtime pay can be an expensive proposition. Under the Department of Labor (DOL) rules, businesses are not required to pay an employee overtime if the employee is considered “exempt” from the overtime pay requirements. But this incentive must be balanced with compliance to applicable labor laws—or your firm may have significant exposure for various penalties. The DOL has recently outlined additional requirements for properly classifying employees in five categories: professional, administrative, executive, computer, and outside sales.
This article published by the AIA Risk Management Program focuses on the exemptions permitted under DOL rules and offers advice on how employers can remain compliant with those rules.