This Month Only! >> $20 off and a FREE SHRM tote with your membership and code TOTE2018!
Sign up for free email newsletters and get more SHRM content delivered to your inbox.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
Guard Against FLSA Claims
"Employers put the cart before the horse," says Wes Redmond, a shareholder with Baker, Donelson, Bearman, Caldwell & Berkowitz in Birmingham, Ala. "They think that if they pay a salary, the person is exempt. But it works the other way—it's the job duties and not the salary that counts."
"Employers confuse the importance of the job with the application of the exemption," says Lee Schreter, a shareholder with Littler Mendelson in Atlanta. "For example, if a courier carrying thousands of dollars in bonds loses the bonds, the consequences are severe for the organization, but that doesn't make the courier exempt from the Fair Labor Standards Act. The fact that your mistakes might cost money doesn't make you exempt. You have to ask, 'What decisions is this person making? And with what authority?'"
There's litigation regarding assistant managers in the retail area, people who were misclassified as executives, says Redmond, listing big verdicts against Ralph's and Albertson's grocery chains, Bed Bath and Beyond, Family Dollar, and Dollar General. "The assistant managers spent too much time doing nonmanagement work, like stocking shelves, and without the discretion required for the executive exemption."
Misclassification litigation most often occurs among those with job titles such as claims adjuster, loan officer and broker, according to attorney Tammy McCutchen, a shareholder in the Washington, D.C., law office of Littler Mendelson. She lists the following examples of likely misclassifications:
Diane Cadrain, an attorney and writer, has been covering workplace law for 20 years and is a member of the Human Resource Association of Central Connecticut.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
HR Education in a City Near You
SHRM’s HR Vendor Directory contains over 10,000 companies