Before the Offer Letter: Define Job Description Then Exemption Status in Business and at Work

Some time ago, a newer client reached out for help with an exempt salaried offer letter. Knowing that New Client did not yet have job descriptions, I asked how they decided that the new employee’s job was indeed exempt. “It’s always been exempt,” they replied.

A few steps were missing before we could finalize their exempt offer letter with the confidence that the offer was compliantly audit-ready – namely, to confirm that the new employee’s job was indeed exempt:

• The first critical step is to complete an inventory in partnership with employees of their current exempt tasks, and create or update their job descriptions accordingly.  Without this task inventory and the resultant up-to-date employee job description (and it’s critical to have the input of the employee, as U.S. DOL in an audit sits down with the employee first to confirm that their job description is accurate, not the employer), there’s no documented proof that the employee is indeed exempt.
• The second step is to develop the job description – title, duties, physical requirements (which makes your worker’s compensation carrier instantly happy), etc.
• The third step is to determine if the job is exempt or nonexempt. In addition to these Federal DOL exempt guidelines (e.g., The employee’s primary duty includes the exercise of discretion and independent judgment with respect to matters of significance), New York state also requires that exempt employees are paid at a minimum salary (currently at $780.00 a week in the upstate NY region, and set to rise again on December 31, 2018).

Once this process is completed, it’s then substantively possible to confirm that the new employee is indeed exempt. Then, an exempt salaried offer letter can be developed and tendered with confidence.

Do you define the job description and then exemption status before tendering an exempt salaried offer letter, in business and at work?