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Hodges & Foty, LLP > Misclassified  > 6 Consequences Your Employer May Face If They Have Misclassified You as Exempt From Overtime

6 Consequences Your Employer May Face If They Have Misclassified You as Exempt From Overtime

Legally reviewed by David W.Hodges and Don J. Foty

In an evolving workforce, the distinction between exempt and nonexempt employees under the Fair Labor Standards Act (FLSA) has never been more critical. Misclassifying employees as exempt from overtime can lead to significant legal and financial consequences for employers. Misunderstanding these classifications can easily lead to compliance issues, which are costly and damage an organization’s reputation.

At Hodges & Foty, LLP, we highlight the critical nature of accurate employee classification and its implications for fair wage practices. Our focus on employment disputes, including cases of overtime and unpaid wages, underscores our commitment to advocating for workers’ rights to fair compensation. If you want to learn more about your rights as an employee, feel free to retain our support. You can reach us by calling (713) 523-0001 or completing our contact form.

What Are the Legal Consequences for Employers Who Misclassify Their Employees?

Classifying an employee as exempt or nonexempt from overtime pay is governed by federal and state laws, depending on the specific jurisdiction. The following includes some of the legal repercussions your employer may face for misclassifying employees:

  • Fines for each misclassified worker
  • Additional taxes and interest for the company
  • General increases in unemployment tax rates
  • Lawsuits with more considerable fines through civil penalty
  • Jail time
  • Additional punitive damages

If you need assistance with your misclassification claim and holding your employer accountable, we can help. Please get in touch with Hodges & Foty, LLP for support in receiving fair compensation for your withheld wages.

How Does Misclassification Affect Employees?

Misclassification by an employer can negatively impact an employee in several ways, but the most prominent is reduced payment for the work provided. However, misclassification and the resulting lost financial compensation can also lower employee morale, making them feel more depressed and anxious. In some cases, employees may even seek medical attention for these issues.

In short, misclassification can impact you and your coworkers in many more ways than you or your employer might realize. We encourage you to take legal action if you believe you have been misclassified and mistreated by your employer. Feel free to contact Hodges & Foty, LLP for assistance with your claim so you can receive fair compensation and hold your employer accountable.

How Can a Misclassification Lawyer Help With Your Claim?

If you want to take legal action against your employer for the wrongdoing caused to you, you can receive compensation. When you work with Hodges & Foty, LLP, we can assist you in the following ways:

  • Prepare your case for court
  • Assure that all documents are filed correctly and promptly
  • Communicate with the other parties on your behalf
  • Organize and present the evidence
  • Access research methods and tools only available to legal professionals
  • Provide an understanding of the legal system and how to make it work for you
  • Reduce stress related to your case

We encourage you to refrain from working on your misclassification claim alone. Instead, work with an attorney with experience in employment law, such as one from Hodges & Foty, LLP. We can help you receive fair compensation and reduce stress related to your claim.

Fight for Fair Pay From Your Employer: Retain Support From Hodges & Foty, LLP Today

If you suspect that you have been misclassified as exempt from overtime, it is crucial to understand the potential consequences your employer may face and explore your options. Hodges & Foty, LLP can aid you in navigating your complex employment claim, ensuring that your rights are protected. Do not let your employer’s mistake impact your financial well-being.

For personalized legal guidance and to discuss your case, contact Hodges & Foty, LLP today. You can reach us by phone at (713) 523-0001 or complete our contact form to learn more about how we can assist you with your employment law needs. Our experienced team is ready to help you navigate your employment disputes and work towards a favorable outcome.

Hodges & Foty, LLP

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