Misclassification of Sales Employees Under Wage and Hour Laws
Many employers classify their sales force as exempt from minimum wage and overtime requirements. However, employers should be aware that not all sales employees are exempt. In fact, only certain sales employees are considered exempt from minimum wage and overtime requirements under the Fair Labor Standards Act (“FLSA”) and the Minnesota Fair Labor Standards Act […]
8th Circuit Rejects S Corporation Owner’s Characterization of Reasonable Compensation
A recent decision of the 8th Circuit Court of Appeals provides both a cautionary tale and guidance for owners of S corporations that receive significant profit distributions along with salaries deemed unreasonably low. In David E. Watson, P.C. v. United States, 668 F.3d 1008 (8th Cir. 2012), the 8th Circuit (which covers Arkansas, Iowa, Minnesota, […]
Unpaid Internships Pose Legal Traps for Employers
The topic of unpaid internships has recently received significant attention in the news and from government agencies. In February 2012, the New York Times reported that a full-time unpaid intern in New York City filed a lawsuit against fashion magazine Harper’s Bazaar and its parent company Hearst Corporation alleging violations of federal and state wage […]
Guidelines for Executives to Follow When Departing Their Employer
Moving from one employer to another is often an exciting time for many employees. The last thing most employees need when joining a new employer or starting their own business, however, is a costly lawsuit initiated by their former employer. The risk of such litigation is greater than most employees probably imagine, especially for high […]