FLSA Administrative And Executive Exemptions: Avoiding, Auditing And Correcting Misclassifications
Wage and hour lawsuits are one of the most significant workplace liability risks for employers, and settling or losing a wage and hour action is expensive. The FLSA’s “white collar” exemption categories are fertile ground for litigation, including class action lawsuits.
The administrative exemption leads to numerous disputes due to its many gray areas. Whether a position qualifies as exempt depends on a fact-intensive examination of the role of the position in the employer’s business, the amount of discretion and independent judgment an employee exercises and the areas in which the employee exercises that discretion and independent judgment. The executive exemption also requires a case-by-case analysis; employees with “manager” title are not necessarily exempt from FLSA requirements. Companies must avoid employment practices that jeopardize otherwise legitimate exempt classifications and cause the loss of the exemption for an entire category of employees.
Listen as our authoritative panel of employment attorneys provides an in-depth analysis of the murky administrative and executive FLSA exemptions and the position classifications and industries most likely to be challenged by employees. Learn what counsel to employers must do to ensure that these white collar classifications withstand legal scrutiny and what practices can jeopardize the exemptions.
- Overview of FLSA minimum wage and overtime pay requirements
- Executive exemption tests
- Administrative exemption tests
- Self-audit strategies and techniques
- Steps for correcting misclassification errors and limiting exposure to claims
The panel will review these and other key issues:
- What supervisory duties must a position encompass to qualify for the executive exemption?
- How have courts interpreted the “discretion”—and—“independent judgment” factor of the administrative exemption?
- What corrective actions should companies take after uncovering a misclassification?
- What effect might the proposed DOL rule to implement President Obama’s directive on the white collar exemptions have on employers?
Robert M. Hale, Partner
Goodwin Procter, Boston
Mr. Hale, Chair of the firm’s Labor & Employment Practice, represents employers across a broad spectrum of employment matters. His practice involves representation of clients in employment litigation, including noncompetition, discrimination, wrongful discharge, FLSA and ERISA litigation. Mr. Hale is experienced in successfully representing employers before administrative agencies and in labor arbitrations. He is a former Employer Co-Chair of the Federal Labor Standards Legislation Committee of the ABA.
Janet A. Hendrick, Of Counsel
Fisher & Phillips, Dallas
Ms. Hendrick’s practice focuses on employment litigation for national and regional employers of all sizes in industries including manufacturing, retail, healthcare, finance, consulting, and hospitality, in administrative, state, and federal court actions. She represents clients in all areas of litigation under state and federal fair employment practice statutes, including the Civil Rights Act, ADA, FMLA, FLSA and ERISA.
Staci Ketay Rotman, Partner
Franczek Radelet, Chicago
Ms. Ketay Rotman represents employers in a wide variety of industries in all aspects of labor and employment law. She represents clients before federal and state courts and administrative agencies and advises employers on the Fair Labor Standards Act and related state statutes, ranging from worker classification audits to claims alleging unpaid wages. Ms. Ketay Rotman is the author of a number of articles on wage and hour issues and is a frequent speaker on employment law topics.
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||Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417 or by visiting their website.
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