Why Does Classification as an Exempt or Nonexempt Employee Matter?

It may not seem like that big of a deal, but whether you’re classified as an exempt or nonexempt employee actually makes a serious difference. Wage and hour requirements differ for exempt or nonexempt employees, and if you are misclassified as exempt, you may actually be denied proper benefits and pay.

Initial $2.8M AT&T Wage and Hour Settlement Reached

A recent class action wage and hour lawsuit against telecommunications giant AT&T has reached a settlement agreement and been granted preliminary approval. The lawsuit alleged that AT&T misclassified a group of corporate training managers as exempt employees when they should actually have been considered nonexempt, therefore failing to pay them proper overtime wages and violating the Fair Labor Standards Act.

The $2.75 million settlement deal would be available to a Class of over 200 managers from both in and out of California. Class representatives would be awarded $20,000.

Are You Exempt or Nonexempt?

How can you tell if you’re considered an exempt or nonexempt employee? You may be an nonexempt employee if you work as an outside salesperson, you’re the parent or child of an employer, you participate in an unpaid national service program like AmeriCorps, or you are a direct employee of the state, county, incorporated city, or other municipal corporation.

Determining whether you’re exempt or nonexempt is an important first step in knowing what wage and hour laws apply to you. Most employees are nonexempt, meaning that all federal and relevant state wage and hour laws apply, including minimum wage, overtime pay, and break requirements.

Wage and Hour Regulations

There are a series of both federal and state wage and hour laws put in place to protect workers and ensure they are treated fairly. However, many workers across the country do not know the protections that the Fair Labor Standards Act (FLSA) offers, which can lead to employers taking advantage of them, in some cases requiring unpaid overtime work despite the illegality of doing so.

Some workers may find themselves unable to file wage and hour complaints like this unpaid overtime lawsuit because they are not aware of FLSA rules. Others may be afraid that their employers will retaliate or even fire them if they speak up about these kinds of FLSA violations. Some may be unaware of whether they are considered exempt or nonexempt employees, or what that means in terms of their benefits. To protect workers who help to enforce FLSA rules, laws also exist to protect workers from retaliation based on wage and hour complaints.

Pursuing a Wage and Hour Settlement

If you have worked for an employer like AT&T that may have failed to follow the Fair Labor Standards Act or state labor laws, such as overtime requirements or misclassification, you may be able to either join a wage and hour class action lawsuit or file an unpaid overtime lawsuit of your own.

Join a Free Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now