Question: What are the penalties and costs for misclassifying employees? Answered by the HR Experts: The answer will depend on a number of factors, such as how many employees are misclassified, how much extra money they would have been paid if properly classified,...
Non-Exempt Status
Can a nonexempt employee be paid a salary?
Question: Can a nonexempt employee be paid a salary? Answered by the HR Experts: Yes, a nonexempt employee can be paid on a salary basis rather than by the hour. However, this classification can be tricky in practice. It means that the employee is paid a set salary...
How Do We Pay an Exempt Employee Who Works Part-Time?
Question: We have an exempt employee who is going to be working part-time hours indefinitely. Do we need to switch them to hourly nonexempt or can we simply reduce their salary while keeping them exempt? Answer: You don’t necessarily need to change their...

