Salaried Workers (Exempt versus Non-Exempt Employees)

Schaumburg, Illinois- Labor Law Attorney Defending Employers

Today more than ever, employers are faced with difficult decisions on how to classify their employees to ensure the appropriate wage and hourly compensations are administered correctly.

The Miller Law Firm, P.C. in Schaumburg, Illinois, provides cost-efficient legal guidance, to small and midsize businesses, that are in need of an experienced employer defense attorney, who can offer pragmatic solutions to labor law issues concerning exempt and non-exempt employees.

Make Sure Your Company Passes the Test

The Illinois Department of Labor uses the Fair Labor Standards Act (FLSA) as a basis to define a "salaried", exempt employee from a non-exempt employee. To determine the difference between exempt employees and non-exempt employees, a "salary basis" test and a "duties" test can be used by employers, to help clarify any ambiguities surrounding employee classification.

An exempt employee who receives a salary and earns a minimum of $455 per week, regardless of how many hours or days they worked, would satisfy the salary basis test. There are however, some exceptions where exempt employees may not be paid, if they do not work in a workweek.

Moreover, the duties test, which consists of several job categories, including but not limited to, administrative, professional and executive positions, can be complicated and confusing to many employers. Certain job descriptions are outdated and because each job category has its own unique set of required duties, employers could easily misclassify their workers.

Be Aware of How You Classify Your Employees

Whether you are dealing with one employee or several employees, your business will need to make the distinction between an exempt employee, who is paid a salary, and a non-exempt employee, who is paid hourly and is eligible for overtime pay. There's no need to pay costly penalties for failing to properly classify an employee as exempt or non-exempt.

Even if you hire independent contractors versus employees, your business will still need to appropriately classify workers to ensure the rules and regulations are being followed, according to the Fair Labor Standards Act (FLSA).

Contact Our Schaumburg Employer Defense Law Firm

Contact the Miller Law Firm, P.C. to learn more about our legal services and how we can help protect your business from making costly mistakes concerning exempt and non-exempt employee issues. Call 847-995-1205, to schedule a free initial consultation today.