Alpharetta Lawyer Works to Prevent Misclassification of Employees as Exempt from FLSA
Georgia employment attorney enforces the rights of non-exempt workers
The federal Fair Labor Standards Act (FLSA) generally requires employers to pay employees one and a half times their normal wage when they work more than 40 hours in a week. However, specified types of employees are exempt from that requirement. Legal problems arise when an employer misclassifies an employee as exempt and denies them the overtime pay to which they are entitled. The Reddy Law Firm, P.C., in Alpharetta, provides legal advice to Georgia employers and employees about compliance with the FLSA and the penalties for violations.
What is the difference between exempt and non-exempt employees?
The FLSA applies to most but not all types of employees. Non-exempt employees are those whom their employers must pay overtime, including blue-collar workers, store clerks, and restaurant servers, and most other full-time employees who earn hourly wages. Exempt employees are those who are not required to be paid overtime, such as managers, administrative personnel, professionals, computer programmers, and salespeople who work out of the office. Exempt employees are not entitled to the benefits of the FLSA, including overtime and, in some cases, minimum wages.
Which employees are exempt?
The major categories of exempt workers are:
- Executive — They manage the work of two or more full-time employees, and have the authority to hire, fire, discipline, promote, demote or make recommendations about such job actions.
- Administrative — They primarily perform office or non-manual work, exercising their own discretion in how they perform it.
- Professional — They perform work that requires advanced imagination, originality, or special talents in a recognized creative field or advanced knowledge
- Computer — They design and develop computer systems and programs or conduct systems analysis of computers.
- Outside sales — They regularly work outside their employer’s place of business, selling or taking orders for goods and services.
Other exempt categories of employees include personal companions and babysitters, small farmworkers, seasonal amusement or recreational employees, and newspaper deliverers.
To qualify as exempt, executive, administrative, and computer workers, and some professional workers must earn at least $684 per week.
How misclassification happens and why it is a problem
An employer might misclassify employees as exempt due to a misunderstanding of the law. However, in many cases, the motivation is to reduce the amount of wages and benefits paid.
Misclassification sometimes takes the form of inaccurate job titles, job descriptions, or qualifications. For example, an employee might use the fact that an employee holds an advanced degree to classify him or her as a professional, even though the job duties do not rise to a professional level. Misclassification can occur in any industry or line of business.
Employees’ rights and legal remedies for misclassification
Workers who are misclassified as exempt have several legal remedies that include:
- Unpaid overtime – Employers may be required to pay back overtime wages, perhaps for up to three years.
- Liquidated damages – Employers may have to pay damages equal to the amount of unpaid wages, effectively doubling the financial penalty.
- Civil and criminal penalties – Employers who willfully misclassify employees can face civil penalties of up to $1,000 per violation and criminal prosecution resulting in fines up to $10,000.
A worker can file a complaint with the Department of Labor Wage and Hour Division or pursue a lawsuit, in which they can be reimbursed for their attorneys’ fees. Whether you are an employer or employee, an employment lawyer at our firm can help you with compliance with the FLSA or represent you in court or in agency proceedings.
Contact a Georgia lawyer well-versed in federal wage laws
At the Reddy Law Firm, P.C., in Alpharetta, we provide trustworthy advice and representation to Georgia employers and employees addressing exempt vs. non-exempt FLSA issues. To schedule a consultation, call us at 678-629-3246 or contact us online.