Andrew Gordon and Jessica Turner Discuss the Importance of Classifying Employees Correctly Under the FLSA

Hinshaw attorneys Andrew Gordon and Jessica Turner recently published an article in the Daily Business Review on the issue of employers properly classifying employees as exempt or nonexempt under the federal Fair Labor Standards Act (FLSA). They point to the fact that many employers are losing sight of properly classifying employees under the FLSA, resulting in lawsuits and delayed mergers and acquisitions.

The authors review the particular requirements and exemptions under the law, along with the importance of paying close attention to the job duties that the employees actually perform versus those that are simply listed on the employee’s job description. They conclude with a brief overview of the risks that employers face if they misclassify employees, including massive financial penalties, costly and lengthy lawsuits—and painstaking Department of Labor audits.

Read the full article on the DBR website (subscription required)

"Understanding the FLSA and Its Exemptions" was published by Daily Business Review on November 30, 2021.