Misclassification can lead to big-bucks fines and lawsuits. First, if you've misclassified one employee as exempt, you've probably misclassified many others as well. Second, misclassifying almost invariably means you owe a large amount of overtime.
For most employers, the main exempt classifications are administrative, executive, professional, and outside sales. (Certain specialized computer personnel, certain highly compensated employees, certain retail sales employees, and employees covered by the Motor Carrier Act (MCA) may also be exempt.)
The Three Tests
To be exempt under the administrative, professional, or executive exemptions, employees must pass three tests:
Administrative Exemption Duties Test
Executive Exemption Duties Test
Professional Exemption Duties Test
Outside Sales Exemption Duties Test
(Note: The salary test requirements do not apply to the outside sales exemption.)
The simplest mistakes in exemptions make for the biggest fines and settlements. Make sure your exemptions are solid—attend BLR's audio conferences (you can go to one or all four), for in-depth know-how on administrative, professional, executive, and outside sales exemptions. Get more information.
That's a recap of exemptions. Simple as that, right? Actually, as every HR manager knows, it's not simple. But how do you sort out the all the little details so you don't make an expensive mistake?
Our editors recommend an upcoming series of in-depth audio conferences—one for each of the major exemption types. This four-session approach will let the expert get to the real nitty-gritty of how each exemption works. You just sign up for the ones that affect you, or sign up for all four and receive a substantial discount!
Join us on: Dec. 2 — The Administrative Exemption Dec. 4 — The Professional Exemption Dec. 9 — The Executive Exemption Dec. 11 —The Outside Sales Exemption
On each day, you'll get an in-depth, practical, 90-minute audio conference all about one specific exemption. Our expert speaker will explain:
Each audio conference runs from 1:30 p.m. to 3 p.m. (Eastern Time—adjust for your time zone).
As with all BLR audio conferences, one fee trains all the staff you can fit around a conference phone. You can get your (and their) specific phoned-in or e-mailed questions answered in an extensive Q&A that follows the presentation, and your satisfaction is assured or you get a full refund.
If you can’t attend on those dates, you can preorder the conference CDs. Go here for more information on the conferences, to register, or to preorder the CDs.
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