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Beware FLSA peril: Constantly changing schedules and pay may destroy exempt status

11/06/2008

Employees who are classified as exempt under the FLSA can be paid on a salary basis and must work as many hours as necessary to get the work done. However, some employers make such frequent changes to the salary levels of exempt employees that it can almost seem as if the employees are being paid on an hourly basis. When that happens, the employer loses the right to skip paying overtime.

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