EXEMPTIONS
There are many FLSA exemptions. In fact, approximately thirty-nine sections of this law deal with exemptions from the overtime standards. Any one of these exemption sections may affect a large number of varied occupations; for example, the well-known "white collar" exemptions emanate from just two FLSA sections. Conversely, some of the exemption sections are so precisely worded that they apply to few employees.
Virtually all employers and their advisors are aware of the "white collar" exemptions because of the publicity in 2003 and 2004. These exemptions have widespread application, but misclassifications are common (resulting in back wage liabilities). On the other hand, many employers may be able to claim exemption (for certain employees) under one of the more obscure sections of FLSA, but employers are rarely aware of those possibilities.
If an exemption is to be applied, it is important to make sure that it is valid under the employment scenario. Some of the exemptions have no tolerance (i.e., any nonexempt work during a workweek "defeats" the exemption and overtime pay is owed for that workweek). Other exemptions are much more forgiving of nonexempt activity. An employer's circumstances should be carefully evaluated as to exemption potential. Assumptions can lead to great difficulty and costs.
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