Misclassifications of nonexempt employees and some ways to avoid them

Misclassification of nonexempt employees continues to be a vexing problem for many employers, especially in California. Avoiding misclassifications should be a priority for every business owner and human resource professional. Gone are the days when employees were unaware of their legal rights in the workplace. An article is no substitute for competent legal advice and vigilance in auditing current practices to ensure compliance. However, a review of fundamental principles and a description of common pitfalls provides a useful starting point for any employer. Employers must be constantly vigilant and continuously monitor the compensation and job duties of exempt personnel to ensure that all requirements of an applicable exemption are met. When exemption qualifications are unclear or too close to call, employers should seek legal advice. When job evolution causes an employee to fall below the line, additional duties should be added or compensation adjusted to bolster the exemption.