In a BLR webinar titled "Exempt or Nonexempt? How To Avoid the Misclassification Mistakes You Simply Can't Afford To Make," Roy P. Salins, Esq., explained that class action wage and hour lawsuits are on the rise and that employers can minimize their exposure to such claims by familiarizing themselves with key exemptions under the law.

To make sure employees are classified properly as exempt or nonexempt, it is important to understand the elements of each of six key exemptions:

• Executive
• Administrative
• Outside sales
• Professional
• Computer professional
• Highly compensated employee

Each exemption carries with it certain requirements--some of which overlap with other exemptions. For example, to qualify for the executive, administrative, professional, computer professional, or highly compensation employee exemption, an employee must be paid a salary of not less than $455 per week.

• Alternatively, to qualify for the computer professional exemption, an employee must be paid at least $27.63 per hour.
• In addition to being paid a minimum salary of $455 per week to qualify for the highly compensated employee exemption, an individual must be paid annual total compensation of $100,000 or more. The annual compensation of $100,000 may consist of commissions, nondiscretionary bonuses and other incentive compensation earned during the previous 52-week period.

Roy P. Salins, Esq., is a senior associate Labor and Employment Practice Area of Vedder Price PC. Based out of the firm's New York office, Salins's practice includes all aspects of litigation in federal and state courts, administrative agencies, and in arbitrations before FINRA and the AAA. Salins also devotes a large part of his practice to counseling clients in all areas of labor and employment law, compliance with federal and state nondiscrimination and wage statutes, and issues relating to reduction in force, employee compensation, benefits, staffing, hiring, discipline and discharge. He can be contacted at rsalins@vedderprice.com.