Return-to-Work Changes Pose Litigation Trap 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, wage-hour attorneys said.

Businesses have long relied on statutory exemptions to overtime requirements to limit labor costs and the burdens of tracking employee hours. There are multiple forms, including an “outside sales” exemption for workers who routinely travel door-to-door, and an “executive” exemption for employees who direct the work of at least two others.

Most exemptions are based on a worker’s daily tasks and that creates a risk area ...