Exempt or Non-Exempt: Employee Overtime Compliance Is on the Clock
As of January 1, 2020, exempt employees must earn a minimum salary of $35,568 annually ($684 weekly) to satisfy one of three critical requirements to qualify as “overtime exempt”. This change is a little over 50% higher than the current minimum salary level of $23,660, according to Littler. However, as most employers are aware, the minimum salary is just the math - whereas the “duties test” is where most employers struggle.
Determine Whether Your Employees Are Properly Classified
Determining whether an employee has enough “white collar” responsibility to be exempt from overtime pay can be a difficult, time consuming decision to make - especially when the clock is ticking.
What Happens When You Get Employees' Overtime Classification Wrong?
There are major consequences, including liability for back wages – and sometimes, double, triple or even quadruple back wages. In fact, liability for a single misclassified employee earning $35,000 annually and averaging 5 hours of overtime each week could be as high as $38,000 – or $3.8 million for 100 similarly situated employees.
Make the classification call with Navigator Overtime
Quickly and compliantly determine whether an employee is exempt or non-exempt. Navigator OT is the only self-service overtime solution, delivering actionable guidance in minutes not hours. Whether your company has 10 employees or 100,000, Navigator OT is the smart solution to your overtime compliance crunch.
This Easy-to-Use Solution Provides You With:
A simple digital questionnaire to capture your specific fact pattern
Actionable risk assessment(s) driven by expert analysis of applicable federal and state regulations and over 2,400 court cases
Instant actionable guidance and a customized report on how to lower the risk of misclassification
A summary of the relevant federal and state exemption standards
A complete questionnaire transcript
Frequently Asked Overtime Questions
The Department of Labor's overtime rules state that an employee "must receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than time and one-half their regular rates of pay."
There are major consequences for improperly classifying employees' exemption statuses, including liability for back wages (and sometimes, double, triple or even quadruple back wages). In fact, liability for a single misclassified employee earning $35,000 annually and averaging 5 hours of overtime each week could be as high as $38,000 – or $3.8 million for 100 similarly situated employees, based on the 2020 rule.
Typically, there is no cap for the number of hours a salaried employee can work.
Explore our Suite
See our Navigator Suite Solutions at work.