FLSA Exempt Employees: Understanding the 2026 Rules and Beyond

Misclassifying an exempt employee isn't just a paperwork mistake - it can trigger costly back wage claims, government investigations, employee lawsuits, and significant penalties. Even a single error in how an exempt employee is paid can jeopardize the exemption for an entire group of employees, resulting in substantial financial liability.

Do you know when an employee truly qualifies as exempt? Are you confident you're applying the salary basis rules correctly? Can you identify which deductions are permitted - and which could invalidate an employee's exempt status?

Join payroll expert Vicki Lambert, CPP, for this practical, in-depth webinar that demystifies the complex rules governing exempt employees under the Fair Labor Standards Act (FLSA). You'll learn how to properly apply the executive, administrative, professional, and outside sales exemptions, understand the salary level and salary basis tests, and examine the rules for using bonuses to satisfy salary requirements. You'll also discover when salary deductions are permitted—and when they can destroy an employee's exempt status and expose your organization to costly penalties.

Whether you're responsible for classifying employees, processing payroll, reviewing HR policies, or ensuring compliance, this session will help you recognize common mistakes before they become expensive legal and financial problems.

Why This Webinar Matters

Improper exempt employee classification consistently ranks among the most expensive wage and hour violations employers face. The Department of Labor can require employers to pay years of back wages, overtime, liquidated damages, and civil penalties - and those costs can multiply when the same mistake affects multiple employees.

Even if your organization correctly classifies an employee as exempt, improper salary deductions or payroll practices can destroy the exemption, exposing the employer to significant liability. Understanding these rules isn't optional - it's essential for protecting your organization from costly compliance failures.

What You'll Learn

• What "exempt" really means under the FLSA
• The four primary exempt classifications: Executive, Administrative, Professional, and Outside Sales
• How the duties test determines exempt status
• Understanding the salary level and salary basis requirements
• How bonuses can be used to satisfy salary requirements
• Applying the Highly Compensated Employee exemption correctly
• When salary deductions are permitted—and when they can invalidate the exemption
• The latest developments affecting exempt employee regulations
• State law considerations and how they may differ from federal requirements
• Practical strategies to reduce compliance risks and costly classification errors

Who Should Attend

• Payroll Managers, Administrators, Practitioners, and Specialists
• Human Resources Professionals and Managers
• Accounting and Finance Personnel
• Business Owners and Executive Leadership
• Operations and Department Managers
• Employment Attorneys and Legal Professionals
• Anyone responsible for employee classification, payroll compliance, or wage and hour administration

Speaker(s)

Vicki M. Lambert, CPP

Vicki M. Lambert, CPP, is President and Academic Director of The Payroll Advisor™, a firm specializing in payroll education and training. The company’s website www.thepayrolladvisor.com offers a payroll news service which keeps payroll professionals up-to-date on the latest rules and regulations. With 40 years of hands-on experience in all facets of payroll functions as well as over three decades as a trainer and author, Ms. Lambert has become the most sought-after and respected voice in the practice and management of payroll issues. She has conducted open market training seminars on payroll issues across the United States that have been attended by executives and professionals from some of the most prestigious firms in business today. A pioneer in electronic and online education, Ms. Lambert produces and presents payroll related audio seminars, webinars and webcasts for clients, APA chapters and business groups throughout the country. Ms. Lambert is an adjunct faculty member at Brandman University in Southern California where she is the instructor for the American Payroll Association’s “PayTrain” online program offered by Brandman University.

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Credits: 1.5

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Credits: 1.5

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Credits: 1.5

Credits: 1.5

In accordance with the standards set forth in Circular 230 section 10.6, CE Credits have been granted based on a 50-minute contact hour.

Credits: 1.5

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