On Demand Webinar
Webinar Details $219
- Webinar Length: 100 Minutes
- Guest Speaker: Vicki Lambert
- Topic: Payroll, Taxation and Accounting, Human Resources, Business Administration
- Credit: CPE 2.0, ATATX 1.5, ATAHR 1.5, ATAPR 1.5, HRCI 1.5, SHRM 1.5, RCH 1.5
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In this webinar we will discuss the four classification of exempt employees permitted under Department of Labor rules including executive, administrative, professional and outside sales. We will examine the salary level test including rules for using bonuses to cover salary and the salary basis test. We 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.
Background
Improper exempt worker classification and non-compliance with regulations pertaining to them generate some of the largest back pay awards and fines ever recorded. Penalties and back wages are computed with the same formula for all companies--large or small. Exempt employee classification and compliance infractions can be devastating or ruinous to any employer.
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. It is crucial to remember 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.
Your benefits for attending:
- What is exempt—exactly?
- What are the categories of exempt employees under the FLSA?
- Examine the job duties test.
- What is the bonus rule?
- How is the highly compensated exemption applied?
- Examine the latest from DOL on upgrading salary level tests for exempt employees.
- What is salary basis?
- When you can and when you cannot dock the pay of an exempt employee?
- Where do the states stand on exempt?
Who can Benefit:
- Payroll Executives/Managers/Administrators/Professionals/Practitioners/Entry Level Personnel
- Human Resources Executives/Managers/Administrators
- Accounting Personnel
- Business Owners/Executive Officers/Operations and Departmental Managers
- Lawmakers
- Attorneys/Legal Professionals
- Any individual or entity that must deal with the complexities and requirements of payroll compliance issues
Speaker Profile:
Vicki M. Lambert, CPP, is President and Academic Director of The Payroll Advisor™, a firm specializing in payroll education and training. The company’s website www.thepayrolladvisor.com offers a payroll news service which keeps payroll professionals up-to-date on the latest rules and regulations.
With 40 years of hands-on experience in all facets of payroll functions as well as over three decades as a trainer and author, Ms. Lambert has become the most sought-after and respected voice in the practice and management of payroll issues. She has conducted open market training seminars on payroll issues across the United States that have been attended by executives and professionals from some of the most prestigious firms in business today.
A pioneer in electronic and online education, Ms. Lambert produces and presents payroll related audio seminars, webinars and webcasts for clients, APA chapters and business groups throughout the country. Ms. Lambert now presents a weekly podcast, Payroll 24/7, on all things payroll.
- Introduction
- About Us 00:00:20
- Our Focus For Today 00:01:09
- Overtime Eligibility 00:05:21
- “White Collar” Exemptions - Known as EAP Exemptions 00:10:01
- Blue Collar Workers Since 2004 00:13:16
- Police, Fire Fighters, Paramedics & Other First Responders 00:16:12
- Three Tests For Exemption 00:17:27
- Job Duties Test 00:17:53
- Executive Duties - Exempt Employee 00:18:02
- Executive Duties Continued 00:18:10
- Primary Duty 00:20:09
- Primary Duty Continued 00:20:34
- Primary Duty: Factors to Consider Include, But Not Limited To 00:22:25
- Concurrent Duties 00:23:27
- Management 00:24:35
- Customarily And Regularly 00:25:20
- Department Or Subdivision 00:25:58
- Two Or More 00:26:16
- Staffing Meets The Two Or More Requirement 00:26:50
- Staffing Does not Meet The Two Or More Requirement 00:28:13
- Staffing Does not Meet The Two Or More Requirement Continued 00:28:53
- Administrative Dutives - Exempt Employee 00:29:13
- Administrative Dutives 00:29:33
- Management Or General Business Operations 00:30:32
- Management Or General Business Operations Continued 00:30:52
- Employer’s Customers 00:31:09
- Discretion And Independent Judgment 00:32:02
- Discretion And Independent Judgment Continued 00:32:50
- Use Of Manuals 00:34:07
- Human Resources 00:34:47
- Other Exempt Positions 00:35:39
- Learned Professional Duties - Exempt Employee 00:36:19
- Learned Professional 00:36:44
- Prolonged Course Of Specialized Intellectual Instruction 00:37:41
- Advanced Knowledge 00:38:05
- Field Of Science Or Learning 00:38:44
- Other Exempt Professions 00:38:58
- Other Non-Exempt Positions 00:39:26
- Creative Professional Duties - Exempt Employee 00:40:45
- Creative Professional Duties 00:40:54
- Recognized Field Of Artistic Or Creative Endeavor 00:42:02
- Computer Exemption 00:42:43
- Duties 00:44:18
- And Design, Development, Documentation 00:44:39
- And Design, Documentation, Testing 00:45:01
- The Exemption Does Not Include 00:45:21
- Outside Sales - Exempt Employee 00:46:10
- Outside Sales Exemption Duties 00:46:15
- Salary Requirement 00:46:34
- Primary Duty 00:46:55
- Making Sales 00:47:18
- Away From The Employer’s Place Of Business 00:48:23
- Fixed Site 00:50:04
- Drivers Who Sell 00:51:08
- These Factors Include 00:52:15
- Salary Level Test - Exempt 00:52:40
- Pending Updates To The Salary Level Tests 00:52:47
- Wage And Hour Division 00:53:09
- Department Of Labor 2020 Salary Level Rule Changes 00:57:14
- Current Salary Levela As Of 01/01/2024 00:57:57
- Department Of Labor Salary Level Rules 00:58:17
- Nondiscretionary Bonuses 00:58:31
- Example For 2023 00:59:22
- Example For 2023 - Minimum Salary Level 00:59:44
- Example 2 For 2023 01:00:24
- Additional Compensation 01:01:01
- Hourly, Daily, Or Shift Basis 01:02:10
- Reasonable Relationship 01:02:20
- Free Basis 01:03:32
- Free Basis - Fee Payment 01:03:58
- No Salary Requirements 01:04:55
- Highly Compensated Test 01:
- Total Annual Compensation 01:
- Make-Up Payment & Pro-Rating 01:
- Salary Basis Test - Exempt 01:
- Salary Basis Test 01:
- Deductions From Salary 01:
- Full Day Increments 01:12:36
- Full Day Increments Example 01:15:38
- Permitted Salary Deductions 01:16:49
- Permitted Salary Deductions Continued 01:18:46
- Clearly Communicated Policy 01:20:29
- Safe Harbor 01:22:30
- Payroll Practices That Do Not Violate The Salary Basist Test 01:26:46
- Effect Of Improper Deductions 01:29:59
- Improper Deductions - Examples 01:30:49
- Actual Practice: Factors Include, But Not Limited To 01:31:39
- Example: Effect Of Improper Deductions 01:31:58
- The States 01:34:19
- Where The States Stand 01:34:24
- Where The States Stand - Current Rules For EAP Employees 01:36:07
- Salary Level By State 01:36:41
- Sample - Where The States Stand - Current Rules For EAP Employees 2024 01:37:57
- For Example: AK 01:38:01
- For Example: CA 01:38:22
- For Example: Connecticut 01:38:45
- For Example - Washington 01:38:52
- Final Questions 01:39:07
- Presentation Closing 01:53:11
- Audit 00:01:24, 00:07:12, 00:21:35
- Contractor 00:01:33
- Department of Labor (DOL) 00:33:40
- Exempt 00:02:03, 00:02:08, 00:02:43, 00:02:26, 00:03:51, 00:05:34, 00:05:58, 00:06:30, 00:07:55, 00:09:27, 00:10:05, 00:14:22, 00:17:32,00:22:41, 00:27:33, 00:33:53, 00:40:42, 00:45:35, 00:47:08, 01:28:47
- Fair Labor Standards Act (FLSA) 00:02:29, 00:02:57, 00:12:37
- Non-Discretionary Bonus 00:58:34
- Non-Exempt 00:01:50, 00:15:06, 00:23:34, 00:27:06
- Overtime 00:03:41, 00:05:30,00:05:39, 00:05:47, 00:06:20, 00:07:14, 00:11:37, 00:14:49, 00:15:18
- Safe Harbor 01:22:35
- Salary 00:03:22, 00:04:06, 00:06:48, 00:11:22, 00:11:54, 00:46:38, 01:05:00, 01:12:50
- Salary Basis Test 00:03:30, 00:04:20, 00:06:09, 00:17:46, 00:46:43
- Salary Level Test 00:03:22, 00:03:35, 00:06:08, 00:17:40, 00:46:41, 00:52:43
- Wage 00:23:23
Audit: A formal examination of an organization's or individual's accounts or financial situation
Contractor: A person or company that undertakes a contract to provide materials or labor to perform a service or do a job.
Department of Labor (DOL): The United States Department of Labor is a cabinet-level department of the U.S. federal government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, reemployment services, and some economic statistics; many U.S. states also have such departments.
Exempt : Exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act. They do not receive overtime pay, nor do they qualify for the minimum wage
Fair Labor Standards Act (FLSA): The Fair Labor Standards Act of 1938 29 U.S.C. § 203 is a United States labor law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits most employment of minors in "oppressive child labor".
Non-Discretionary Bonuses: A non-discretionary bonus is a bonus that the employee is expected to be paid and it is usually given at the same time, either monthly, quarterly or annually. Because these bonuses are agreed upon ahead of time, they must be included in the regular rate of pay and the calculation of overtime.
Non-exempt: Non-exempt employees are workers who are entitled to earn the federal minimum wage for every hour they work. Such workers likewise qualify for overtime pay, which is calculated as one-and-a-half times their hourly rate, for every hour they work, above and beyond a standard 40-hour workweek.
Overtime: Overtime is time and a half of what an employee earns for every hour worked over 40 in a workweek. The FLSA salary threshold is the minimum salary employers must pay employees for them to be exempt from overtime wages.
Safe Harbor: A safe harbor is a provision of a statute or a regulation that specifies that certain conduct will be deemed not to violate a given rule. It is usually found in connection with a vaguer, overall standard. Under the safe harbor, a “rental real estate enterprise” is treated as a trade or business for purposes of Sec. 199A if at least 250 hours of services are performed each tax year with respect to the enterprise. ... The safe harbor requires that separate books and records be maintained for the rental real estate enterprise.
Salary: A salary is a fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.
Salary Basis Test: Is a series of stipulations that may exempt an employee from being eligible for overtime pay.
Salary Level Test: Is one of three tests that employees must pass to qualify for an exemption from minimum wage and overtime pay under the Fair Labor Standards Act (FLSA)
