Municipalities that misclassify persons as “salary exempt” employees under the Fair Labor Standards Act (FLSA) may face significant penalties in the event of an audit by the U.S. Department of Labor (DOL) or a civil suit filed by or on behalf of one or more employees.1 A self-audit of all positions, followed by an annual review, is the best way to avoid or at least minimize exposure to claims for back pay, liquidated damages (double pay), and attorney’s fees.
