Worker Misclassification: Challenges of Determining Exempt vs. Non-Exempt Employees
Conducting Self-Audits, Identifying Vulnerabilities, Correcting Errors, and Minimizing Liability Under FLSA and State Law

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Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Employment and Workers Comp
- event Date
Wednesday, May 24, 2023
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Live Online
On Demand
This CLE course will guide employment counsel and employers on exemption misclassification issues, identifying positions that are most at risk for misclassification under the Fair Labor Standards Act (FLSA) and state law (particularly under the common "white collar" exemptions), conducting self-audits, and implementing measures to correct misclassification errors to minimize liability exposure such as ensuring businesses have appropriate safe harbor policies.
Faculty

John exclusively represents employers on all labor and employment matters and regularly handles wage and hour matters involving federal and state laws, such as the Fair Labor Standards Act, the New York Labor Law, New York’s Miscellaneous Industries Wage Order, and New York’s Hospitality Wage Order which includes numerous cases involving New York’s Wage Theft Prevention Act, tip credits and pooling, deduction from wages and regular rate issues. John also routinely works with the Occupational Safety and Health Act, in addition to handling discrimination and retaliation claims, ADA public accommodation cases, drafting employee handbook policies and executive employment contracts, non-competes, and conducting workplace harassment and discrimination investigations. John has defended a wide range of employers against hybrid class and collective actions under the FLSA and the New York Labor Law with exemption misclassification and off-the-clock claims. He also frequently assists companies with internal wage and hour audits, as well as Department of Labor audits, including those generated by misclassification of independent contractors. John also has extensive experience with assisting businesses with internal safety and health audits, responding to OSHA and state-sponsored OSHA complaints of workplace safety and health and retaliation, and resolving and contesting OSHA citations, including but not limited to fatality investigations as well as defending against claims of retaliation under various OSHA statutes and New York’s Workers’ Compensation Law. John also routinely appears before the EEOC, the New York State Division of Human Rights, the New York City Commission on Human Rights, and the Connecticut Commission on Human Rights and Opportunities. As a former trial attorney with the U.S. Department of Labor, Office of the Solicitor, John prosecuted numerous FLSA and OSHA cases and was part of a litigation team that recovered approximately $4 million under the FLSA on behalf of New York State Environmental Conservation Officers. While at the Department of Labor, he also received a commendation from OSHA’s Regional Administrator for his prosecution of a discrimination complaint under the Surface Transportation Assistance Act. John serves as the co-chair of Cozen O'Connor's OSHA-Workplace Safety Practice and is also the author of its safety and health blog, theOSHA Chronicle.John is a founding member of the Wage and Hour Defense Institute, and he frequently lectures on FLSA, OSHA, and Labor Department audits. He has also taught business and employment law at the Pratt Institute and the New School. John also writes extensively on labor and employment law. He served as the co-editor of the American Bar Association Labor and Employment Law Section (Section) electronic newsletter from 2015-2019 and is the former vice-chair of the Member Engagement Committee of the Section. He was a contributing editor toThe Fair Labor Standards Act, 2002-2005, Cumulative Supplement, published by BNA Books, and has served on its editorial board since 2006. John is also serving as a chapter editor for theOccupational Safety and Health Law, Fourth Edition published by the ABA and Bloomberg Law. John is frequently asked to comment on labor and employment issues and has been quoted extensively in the Long Island Business News, Bloomberg Law, the San Francisco Chronicle, SHRM, CNBC, MSNBC, Forbes, Newsday, the Daily Labor Report, and the Employment 360 and has been published in the New York Journal and USA Today (the magazine), among other publications. John has been named a New York Metro Super Lawyer since 2014 and Best Lawyers in America since 2019. John has also appeared on CNBC’s Squawk Box and been interviewed by several news stations, including PIX11 and NPR’s Marketplace Morning Report. John is also a frequent panelist and contributor on OSHA and Wage and Hour issues before the American Bar Association, New York State Bar Association, New York City Bar Association, Practicing Law Institute, and LawLine.

Mr. Langhammer has over 35 years’ experience representing clients in all aspects of employment law and related litigation, including wage and hour class actions, Private Attorneys General Act (PAGA) claims, Fair Credit Reporting Act (FCRA) claims, and suits involving wrongful termination, discrimination, harassment, and retaliation, breach of contract and unfair business practices, and misappropriation of company trade secrets and proprietary information. He also counsels clients on a wide range of employment law matters, conducts wage and hour compliance audits and reviews, drafts employment policies and procedures, and provides human resources training. Ed represents corporate and business organizations, as well as nonprofit and charitable entities.
Description
Accurate employment classification continues to be the subject of extensive lawsuits. Recent cases regarding who is entitled to overtime pay fuel the litigation and claims by employees challenging their classification as exempt from overtime pay under the FLSA are increasing. Some federal suits have resulted in multi-million dollar verdicts as exemption cases are often filed as both class and collective action lawsuits. State lawsuits are also on the rise and state wage and hour laws are often more employee-friendly than the FLSA particularly in states like California where they continue to be hotly litigated. In California, non-compliance exposes companies to individual, Private Attorneys General Act (“PAGA”), other representative actions and class action claims. There, wage and hour laws continue to multiply, with new laws, regulations, court decisions, and myriad changes to existing laws, impacting employer compliance obligations on a quickly evolving pace.
The U.S. Department of Labor reports that approximately 70 percent of employers are out of compliance with the FLSA's classification requirements. To avoid potential claims, employment counsel must advise employers to reexamine and, where necessary, adjust their worker classification practices.
Listen as our authoritative panel of employment attorneys examines the types of positions most at risk for misclassification as exempt, explains best practices for self-audits, and suggests measures employers should take to correct classification errors and limit liability exposure.
Outline
- Current legal trends, including the status of the "salary basis" rule and salary level under the FLSA and state laws
- Positions most vulnerable for FLSA and state claims: how to determine the correct classification
- Clerical and administrative support personnel
- Assistant managers, supervisors, and team leaders without sufficient staff
- IT workers
- Sales staff
- Self-audit strategies
- Who should conduct an audit?
- Review pay practices and policies: overtime, bonuses, etc.
- Review job descriptions versus what employees actually do
- Review new positions added after a merger or acquisition
- Documenting the audit
- Correcting errors and limiting liability exposure
- Establish compliance program
- Reclassify positions to protect exemptions
- Consider voluntarily paying back wages
- Whether to notify the DOL of the error
- Prepare for state or federal regulatory inquiry into classification practices
Benefits
The panel will review these and other key issues:
- Which positions are most often misclassified as exempt--and how can employers and their counsel best determine the appropriate classification for such positions?
- What self-audit approaches are effective to identify and correct errors with a focus on compliance with the duties and salary basis tests--and protect the company from future liability?
- What are the legal risks of voluntarily paying back wages to misclassified employees? If such payments are made, how far should an employer go back and should liquidated damages be included?
- Should employers take the initiative to notify the Department of Labor of classification errors discovered during self-audits? As private FLSA releases are generally not enforceable, what other measures can an employer take to minimize exposure against exemption claims?
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