Exemptions for highly-paid employees can be confusing

The wage and overtime exemptions of the Fair Labor Standards Act are often considered in terms of occupation - administrative, professional

and outside sales being common applications.

However, the FLSA also excepts certain workers from sections of the law if they receive a large amount of pay, which is known as the highly

compensated worker exemption

To qualify, an employee must make at least $100,000 a year with at least $455 of those earnings coming on a weekly salaried basis, their

work includes little or no manual labor and they perform one or more duties commonly executed by a administrative, professional or

executive worker.

Confusion can stem from deciding whether to apply the occupational or highly compensated employee exemption to a specific worker

Misclassification may lead to a high liability for a company - employee attendance and time being particularly valuable when such a worker

earns six figures.

The recent case of a pharmacist who sued his employer over classification and miscalculated pay, reported by HR.BLR.com, is an

example of why proper categorical placement.

Exemption application are vitally important for businesses that use highly paid workers.

Additionally, using time and attendance software to track hours worked helps employers remain complaint with the FLSA.

Additionally, using time and attendance software to track hours worked helps employers remain complaint with the FLSA.

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