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Common Pitfalls and Ways of Avoiding Wage Problems

By Gillian Flynn

Sep. 30, 2001

Here are some of the common trouble spots for employers under the FLSA or statewage and hour laws:

  • Thinking that simply calling an employeeby a managerial title warrants an exemption.

  • Categorizing an employee as exemptbecause he or she does some exempt-type duties, but not as a primary partof the job.

  • Forgetting to check the exemptionrequirements under state law, particularly in California.

  • Docking salaried employees for partial-dayabsences-a mistake that will cost their exemption.

How to Avoid Future Problems

  • Know both FLSA and state rules onexemptions.

  • Don’t try to force an exempt classificationon employees who don’t meet every qualification.

  • Conduct a self-audit, and in doingso, have employees describe how they spend most of their workdays.

  • Review pay policies to ensure thatyour company doesn’t allow for partial-day deductions for salaried employees.

  • Make sure formal job descriptionsmatch actual jobs. Review and update job descriptions periodically.

Workforce, October 2001, p. 40, SubscribeNow!

Noted author Gillian Flynn is a former Workforce staff member.

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