The FLSA has wrecked havoc on many employers, big and small. Failure to properly pay employees overtime can have devastating consequences. When trying to determine whether a certain employee should be classified as exempt or non-exempt, the general trend is to play it safe rather than be sorry. In other words, when in doubt, pay overtime. Well, this theory has turned out to be not as safe as the Ohio Department of Transportation (“ODOT”) probably hoped.
The state’s attorney general says that ODOT violated federal labor laws by paying $2 million a year in overtime to managers and other workers who should have been classified as exempt, thereby not being entitled to earn overtime compensation. State inspectors initiated an audit and concluded that there was no justification for the nearly $6 million in overtime paid out since 2005.