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Employee Misclassification Red Flags Under the FLSA
The Fair Labor Standards Act (FLSA) provides minimum wage and overtime pay protections to nearly all workers in the United States. Under the FLSA, all employees must be classified as either “exempt” or “nonexempt” from minimum wage and overtime provisions. Misclassification of employees occurs when employers classify nonexempt workers as exempt and fail to provide workers FLSA protections such as overtime. This is a common problem that many employers face. In fact, employee misclassification is one of the most common violations of the FLSA.