Misclassifying workers

Exempt Versus Nonexempt

The most common mistake is misclassifying an employee as “exempt” and, as a result, failing to pay overtime.  The basics of the topic are familiar: under the FLSA and some state laws, many employees (usually called “hourly” or “non-exempt” employees) must be paid time-and-a-half their regular rate of pay for any hours worked over 40 hours per workweek.  The law …