The largest back pay awards and fines are generated because of the improper classification of exempt worker and non-compliance with regulations. The companies (large or small) even now compute the penalties and back wages with the same formula. For any employer, exempt employee classification and compliance infractions can be devastating or ruinous.
Although payroll rarely makes the decision on which employee is classified as exempt, it is critical that they understand the regulations regarding how the determination should be made. It is even more critical that the payroll department understand and apply the strict rules for paying employees who are classified as exempt. The department must ensure that all exempt employees are paid on a salary basis and that no exempt employee’s wages are docked improperly. Remember that the penalties for errors apply to both the classification of the worker and the actual payment of salaries when it comes to exempt employees. More importantly the penalties are applied to all workers in the same job classification under the same manager, when a mistake is made on paying an exempt employee not just the one worker who was paid incorrectly.
Join Vicky Lambert for this informative session to understand the four classifications of exempt employees permitted under the IRS Code, including executive, administrative, professional and outside sales. She will examine the salary level test and the salary basis test. Plus, she will determine what deductions can be properly made from an exempt employee’s salary and which, if made, would violate the salary basis test and result in penalties for the employer.
Who should attend? Payroll and human resource professionals who must determine who is exempt and handle the payment of wages for exempt employees.
Vicki M. Lambert CPP
Vicki M. Lambert, CPP is President and Academic Director of The Payroll Advisor™ a firm specializing in the training of payroll professionals. With over three decades of hands-on experience in all facets of payroll functions as well as over 20 years as a trainer and author, Ms. Lambert is a sought-after ... More info