business of Medicine
Management Liability Toolkit
Three ways employers misclassify workers – exempt employees, independent contractors and interns
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 …
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