Return-to-Work Changes Pose Litigation Risk for Overtime Rules

Employers navigating the many risks associated with reopening workplaces must pay close attention to an under-the-radar litigation trap—changes to a worker’s pre-virus role that make them newly eligible for overtime pay, attorneys say.

Overtime Exemptions: Businesses have relied on statutory exemptions to overtime requirements to limit labor costs and the burdens of tracking employee hours. These include an “outside sales” exemption for workers who travel door-to-door, and an “executive” exemption for employees who direct the work of at least two others.

Employer Risks: Most exemptions are based on a worker’s daily tasks and that creates a risk area for employers ...