Am I personally liable if I misclassify employees as exempt?
From Blue Avocado’s “Ask Rita in HR”
Dear Rita: I am the administrative manager for a small nonprofit. The executive director recently hired a new administrative assistant and wants to classify her as exempt to avoid paying her overtime when she attends evening board meetings and fundraising events. This new AA’s main duties are typing board agendas, ordering office supplies and serving as the general “go-to” person for out-of-office errands.
I know the new AA should be classified as non-exempt and receive overtime pay. The ED says if we pay her a salary and she agrees to being exempt, she can be exempt. I’ve given up trying to convince the ED, but I've heard that management can be held individually liable for non-payment of required overtime. Should I be worried about being held personally liable? – Fearful
Dear Fearful: You may not have too much to worry about but your boss sure does.
