This course provides payroll, HR, and other related professionals with a foundational understanding of the Department of Labor’s (DOL) employee classification rules. It covers the distinctions between exempt and non-exempt status under the Fair Labor Standards Act (FLSA), outlines the proper classification of employees versus independent contractors, and addresses the potential risks and penalties associated with misclassification. Using real-world examples, best practices, and current data points, the course equips participants with the knowledge and tools to maintain compliance and reduce legal and financial risk.
WHY SHOULD YOU ATTEND?
1. Payroll Professionals
- Need to confirm proper classification to avoid back-pay and tax issues.
2. Human Resources (HR) Professionals
- Collaborate with payroll and legal to maintain compliant policies and procedures.
3. Managers and Supervisors
- Need awareness of overtime rules, recordkeeping requirements, and labor regulations.
4. Finance and Accounting Teams
- Should understand how misclassification can affect financial statements and tax liabilities.
5. Small Business Owners or Entrepreneurs
- Need to be aware of classification requirements to prevent costly mistakes as they scale.
6. Executive Leadership
- Should understand the financial and reputational implications of proper employee classification.
AREA COVERED
- Recognize the critical components of exempt and non-exempt employee classification.
- Understand how to accurately determine employee vs. contractor status.
- Use relevant statistics and case studies to stay alert to common misclassification pitfalls.
- Apply best practices for documentation, audits, and continual monitoring.
- Foster collaboration among payroll, HR, finance, and legal teams to ensure company-wide compliance.
LEARNING OBJECTIVES
- Understand the importance of accurate employee classification.
- Recognize the implications of misclassification on payroll compliance.
- Learn best practices and utilize key data points/statistics to guide decisions.
- Consequences of noncompliance (fines, litigation, reputational damage).
- Overview of the Fair Labor Standards Act (FLSA) role in classification.
WHO WILL BENEFIT?
1. Payroll Roles
- Payroll Manager / Payroll Director: Oversees payroll operations, ensuring compliance with wage and hour laws and accurate employee classification.
- Payroll Specialist / Payroll Administrator: Responsible for day-to-day payroll processing, tracking hours, and handling overtime pay.
2. Human Resources (HR) Roles
- HR Manager / HR Director: Defines and updates job descriptions, manages employee relations, and advises on compensation strategies.
- HR Business Partner / HR Generalist: Works closely with business units to align staffing and compensation decisions with legal requirements.
3. Finance and Accounting Roles
- Finance Manager / Financial Controller: Monitors labor costs, forecasts budgets, and ensures accurate financial reporting.
- Accounting Manager / Accountant: Tracks wage expenses, manages payroll accounts, and flags potential classification issues that could affect the general ledger.
4. Compliance and Legal Roles
- Legal Counsel / Employment Attorney: Provides guidance on labor law compliance and risk mitigation; often reviews or advises on classification decisions.
- Compliance Officer / Regulatory Affairs Specialist: Develops and enforces organizational policies, ensuring alignment with federal and state labor regulations.
5. Operations and Administrative Roles
- Operations Manager / Office Manager: May oversee hiring, vendor contracting, and day-to-day scheduling, impacting classification decisions.
- Business Administrator / Director of Operations: Coordinates cross-departmentally to maintain compliance infrastructure.
6. Executive and Leadership Roles
- Chief Financial Officer (CFO) or Chief Operations Officer (COO): Champions the strategic approach to compliance, budgeting, and operations.
- CEO / President (especially in small or mid-sized businesses): Sets the overall compliance culture and is ultimately accountable for organizational risks.
7. Small Business Owners and Entrepreneurs
- Founder / Owner: Often manages payroll and HR functions in early-stage companies, requiring a solid grasp of classification to avoid costly fines.
1. Payroll Professionals
- Need to confirm proper classification to avoid back-pay and tax issues.
2. Human Resources (HR) Professionals
- Collaborate with payroll and legal to maintain compliant policies and procedures.
3. Managers and Supervisors
- Need awareness of overtime rules, recordkeeping requirements, and labor regulations.
4. Finance and Accounting Teams
- Should understand how misclassification can affect financial statements and tax liabilities.
5. Small Business Owners or Entrepreneurs
- Need to be aware of classification requirements to prevent costly mistakes as they scale.
6. Executive Leadership
- Should understand the financial and reputational implications of proper employee classification.
- Recognize the critical components of exempt and non-exempt employee classification.
- Understand how to accurately determine employee vs. contractor status.
- Use relevant statistics and case studies to stay alert to common misclassification pitfalls.
- Apply best practices for documentation, audits, and continual monitoring.
- Foster collaboration among payroll, HR, finance, and legal teams to ensure company-wide compliance.
- Understand the importance of accurate employee classification.
- Recognize the implications of misclassification on payroll compliance.
- Learn best practices and utilize key data points/statistics to guide decisions.
- Consequences of noncompliance (fines, litigation, reputational damage).
- Overview of the Fair Labor Standards Act (FLSA) role in classification.
1. Payroll Roles
- Payroll Manager / Payroll Director: Oversees payroll operations, ensuring compliance with wage and hour laws and accurate employee classification.
- Payroll Specialist / Payroll Administrator: Responsible for day-to-day payroll processing, tracking hours, and handling overtime pay.
2. Human Resources (HR) Roles
- HR Manager / HR Director: Defines and updates job descriptions, manages employee relations, and advises on compensation strategies.
- HR Business Partner / HR Generalist: Works closely with business units to align staffing and compensation decisions with legal requirements.
3. Finance and Accounting Roles
- Finance Manager / Financial Controller: Monitors labor costs, forecasts budgets, and ensures accurate financial reporting.
- Accounting Manager / Accountant: Tracks wage expenses, manages payroll accounts, and flags potential classification issues that could affect the general ledger.
4. Compliance and Legal Roles
- Legal Counsel / Employment Attorney: Provides guidance on labor law compliance and risk mitigation; often reviews or advises on classification decisions.
- Compliance Officer / Regulatory Affairs Specialist: Develops and enforces organizational policies, ensuring alignment with federal and state labor regulations.
5. Operations and Administrative Roles
- Operations Manager / Office Manager: May oversee hiring, vendor contracting, and day-to-day scheduling, impacting classification decisions.
- Business Administrator / Director of Operations: Coordinates cross-departmentally to maintain compliance infrastructure.
6. Executive and Leadership Roles
- Chief Financial Officer (CFO) or Chief Operations Officer (COO): Champions the strategic approach to compliance, budgeting, and operations.
- CEO / President (especially in small or mid-sized businesses): Sets the overall compliance culture and is ultimately accountable for organizational risks.
7. Small Business Owners and Entrepreneurs
- Founder / Owner: Often manages payroll and HR functions in early-stage companies, requiring a solid grasp of classification to avoid costly fines.
