Exempt Employees: Understanding and Mastering the Changes for 2024 and Beyond

Erica Hall27 Aug, 2024Education

The Department of Labor (DOL) will help you to keep up with changing regulations for exempt employee can be challenging. Misclassifying these workers or failing to adhere to payment rules can result in hefty fines and back pay awards, impacting companies of all sizes. Exempt employees receive a fixed salary rather than hourly wages. Although payroll departments don't decide on classifications, they must fully understand and implement the rules for exempt workers. It's crucial that payroll ensures these employees are paid correctly on a salary basis and that their wages are not improperly reduced. Errors in exempt employee classification or payment don't just affect the individual worker but can lead to penalties for all employees in the same job category under the same manager. Compliance is essential to avoid costly legal and financial consequences.