All posts by stu

Can Any Employee Be Paid on a Salary?

That’s not the question that actually matters. The real question for small business owners is: “Does paying this person a salary let me skip paying them overtime?” And the answer to that is usually more complicated than they expect. This mix-up is one of the most common — and most expensive — mistakes small employers make. Let’s clear it up.

The Myth: “Salary = No Overtime”

A lot of business owners believe that once you put an employee on salary, overtime rules disappear. That’s not true. Salary is just a method of payment — a fixed amount per pay period, regardless of hours worked. It has nothing to do, by itself, with whether an employee is legally exempt from overtime. Whether an employee is truly exempt (not owed overtime) depends on meeting three separate tests under the Fair Labor Standards Act (FLSA). Miss any one of them, and the employee is non-exempt — meaning they’re owed time-and-a-half for every hour worked over 40 in a week, salary or not.

The Three Tests for Exemption (All must be met)

1. Salary Basis Test
The employee must receive a salary that is a fixed, predetermined amount each pay period that doesn’t fluctuate based on hours worked or quality of work.

2. Salary Level Test
As of 2026, the employee must earn at least $684 per week ($35,568 per year) under federal law. This amount has fluctuated, up and down, over the years. Florida follows the federal number, so if you’re an employer with only Florida-based employees, $684/week is your line. If you have employees working in other states, check those states’ rules separately.

3. Duties Test
This is the part employers overlook most. The employee’s actual day-to-day job duties — not their title — must primarily fall into one of the recognized exemption categories. Read DOL Fact Sheet.

Five Main Overtime Exemption Categories

Executive – Primary duty is managing the business or a department, regularly directs the work of at least two full-time employees, and has real input into hiring/firing decisions. Read more.

Administrative – Primary duty involves office or non-manual work directly related to business operations, and includes exercising independent judgment on significant matters. Read more.

Professional – Work requires advanced knowledge in a field of science or learning, typically acquired through specialized education (think accountants, licensed professionals) — or “creative professional” work requiring invention, imagination, or talent. Read more.

Computer Employee – Certain computer systems analysts, programmers, and software engineers performing specific technical duties. Read more.

Outside Sales – Employees whose primary duty is making sales away from the employer’s place of business, with no salary minimum required for this one. Read more.

Common Mistakes Small Employers Make

  1. Assuming a job title settles it. Calling someone a “Manager” or “Supervisor” doesn’t make them exempt. What matters is what they actually do most of the time — not what’s printed on a business card.
  2. Exempting someone because “everyone else in the industry does it.” Industry norms aren’t a legal defense. Each role has to be evaluated on its own facts, and each position must fit its own exemption.
  3. Docking pay from salaried employees for partial-day absences. Exempt employees generally must be paid their full salary for any week they perform work, with very limited exceptions. Improper deductions can jeopardize the exemption entirely — for that employee and sometimes others in the same role.
  4. Forgetting to re-visit classifications as duties or pay change. A promotion, a pay freeze, or a shift in responsibilities can quietly turn an exempt role into a non-exempt one. Classifications aren’t “set it and forget it.”
  5. Not documenting the reasoning. If you’re ever audited or challenged, “I thought they qualified” isn’t enough. Keep a short written note for each exempt role explaining which duties and pay level support the exemption (which exemption applied and why).

Bottom Line: Paying someone a salary is simple. Classifying them correctly as “exempt” is not — it takes passing all three tests, not just picking a pay structure. Misclassification is one of the costliest wage-and-hour mistakes a small business can make, often resulting in back pay, penalties, and legal fees. Consultstu talks with small business clients about DOL exemptions every week, and we can help your small business too.

Florida’s Minimum Wage Increasing to $15 – Is Your Business Ready

On September 30, 2026, Florida’s minimum wage rises to $15.00 per hour, up from $14.00, with the tipped minimum wage increasing to $11.98 per hour (a $3.02 tip credit still applies). This is the final scheduled step of the $1-per-year increases Florida voters approved via constitutional amendment in 2020 — and it’s a milestone worth pausing on. Starting in 2027, Florida’s minimum wage will no longer rise by a flat dollar amount each September. Instead, it will adjust annually based on inflation (CPI-W), with the new rate published and taking effect each January 1. In other words, the rhythm employers have gotten used to for six years will change.

What This Means for Florida Employers

  • Every employee earning below $15/hour must be raised to at least that rate by September 30. Tipped employees must receive a direct cash wage of at least $11.98/hour, assuming your business properly satisfies tip-credit requirements (notice, recordkeeping, and ensuring tips plus cash wage meet or exceed $15/hour).
  • Required workplace posting must be updated to reflect the new minimum wage. Visit the FloridaJobs website to download the latest Florida Minimum Wage poster.
  • Pay compression deserves a look: if your $15/hour rate now matches what you’re paying more senior or skilled hourly staff, you may need to adjust other employees upward to preserve pay differentials and morale.

Recommended Actions

  • Audit your pay rates now. Identify every employee — hourly, tipped, or otherwise — currently earning below $15.00 (or below $11.98 direct wage for tipped roles).
  • Update payroll and timekeeping systems to reflect the new rates effective September 30.
  • Refresh required notices and posters in break rooms or online employee portals. Check the FloridaJob website for the latest poster.
  • Reissue the tip credit notice to tipped employees, as required whenever the tip credit changes.
  • Review your full pay structure, not just the wage floor — check for compression against supervisors and longer term staff.
  • Budget for the shift to inflation-based adjustments starting in 2027. Rates will happen every January 1 based on CPI-W, which means smaller increases.

Bottom line: This is the last “big,” predictable jump in Florida’s minimum wage schedule, then moving to inflation-indexed adjustments.

Florida Small Business HR Checkup: Is Your Company Due for an HR Refresh?

Running a small business in Florida means wearing a lot of hats, and HR compliance can easily become something that is handled only when a problem arises. Over time, employee files become inconsistent, forms become outdated, and Employee Handbook policies may no longer reflect current laws or the way the business actually operates. An HR refresh gives small businesses an opportunity to step back and review their employee files, hiring and termination documents, HR forms, job descriptions, leave practices, safety procedures, and Handbook policies before a compliance issue, employee complaint, unemployment claim, or workplace injury exposes a weakness.

Consider a Florida construction company with 28 employees. As the company grew, supervisors hired employees using different versions of offer letters, some personnel files were missing required documents, performance problems were handled informally through text messages, and the Handbook had not been reviewed in years. The company had good intentions, but its HR practices had not kept pace with its growth. After an HR review by Consultstu, the company standardized its new-hire process, reorganized and audited employee files, updated its Handbook and HR forms, and implemented consistent disciplinary documentation. These changes allowed the company to create proper hiring documentation and handle common employee issues with confidence. Even without full time HR, employee documentation became more consistent and the company was better prepared to respond to unemployment claims, workers’ compensation matters, attendance problems, and employee complaints. Just as importantly, management stopped making avoidable decisions—such as terminating employees without adequate documentation and using outdated forms. The HR Refresh project did not add unnecessary bureaucracy; it gave the company a practical HR system that better supported its operations and reduced risk.

For Florida small businesses, an HR Refresh review can be one of the simplest ways to identify problems before they become expensive ones. A periodic objective review of personnel files, HR forms, Employee Handbook policies, onboarding practices, and management procedures can reveal gaps that can be easy to correct today, but harder to address after a claim or dispute occurs. Consultstu’s fractional HR services can provide an affordable outside review of your existing HR practices, identify areas of risk, update outdated documents, and help put practical systems in place—giving small businesses access to experienced HR support without the cost of a full-time HR department.

Fractional HR Services for Florida Small Businesses: What It Is and Why It Works

Small businesses need professional HR support just as much as larger companies—but many do not need, or cannot justify, a full-time Human Resources person. Fractional HR services provide Florida businesses with access to experienced HR expertise on a flexible, part-time, or as-needed basis. Instead of hiring a full-time HR manager, a company can partner with an experienced Florida HR consultant who becomes an extension of its management team and provides practical support when it is needed. It also allows you to find the specific HR skills that are the best fit for your company’s needs.

Why Fractional HR works for small businesses in Florida. Fractional HR can be especially valuable as the company grows and employment issues become more complicated. Business owners and operations managers are often responsible for hiring, payroll, benefits, employee relations, compliance, and performance issues while also trying to operate the business. A fractional HR consultant can take some of these responsibilities off management’s plate while helping the company develop more consistent and professional HR practices.

Fractional HR services can cover virtually every stage of the employee lifecycle. Depending on the needs of the business, support may include: recruiting and onboarding (initial screening), employee policies and handbooks, job descriptions, performance reviews, accommodation requests, benefits admin, workplace investigations, disciplinary actions, terminations, workers’ compensation, and HR answers. Services can also include reviewing existing HR practices to identify areas where a growing business may have compliance or operational risks.

Flexibility is one of the biggest advantages of outsourced HR services for Florida small businesses. A company may need only a few hours of HR assistance each month, ongoing weekly support, help with a specific HR project, or immediate guidance when a difficult employee situation develops. Fractional HR allows the business to obtain the level of HR support it actually needs without adding another full-time salary and benefits package.

Compliance is a key benefit of fractional HR services. Florida employers must navigate changing federal employment requirements along with Florida-specific regulations affecting areas such as hiring, E-Verify, workers’ compensation, unemployment, safety, wage practices, drug-free workplace programs, and employee documentation. As a business adds employees or expands into other states, its compliance responsibilities can become even more complex. Having an experienced fractional HR partner available can help management identify issues earlier and make better-informed employment decisions and prevent costly mistakes and oversights.

Fractional HR consulting for small business is not simply about compliance. Good HR practices can also help a small business improve employment practices, reduce turnover, set clearer expectations, address performance problems sooner, and create a more consistent and engaged employee experience. Instead of waiting for employee problems to arise, businesses can build HR processes that support growth and reduce unnecessary risk.

Looking for fractional HR services or outsourced HR services in Florida? Consultstu provides affordable, personable and practical HR consulting and fractional HR support designed for small and growing businesses. We work with family businesses and companies in all industries. We work alongside owners and managers to strengthen HR practices, manage employee issues, improve compliance, and provide the HR expertise your business needs—when you need it.

Florida Medical Marijuana & Drug-Free Workplace Policies: New Court Guidance for Employers

In July 2026, Florida employers received important guidance on medical marijuana and workplace drug testing in the recent Florida appellate decision Hillsborough County v. Giambrone. The case involved a firefighter-paramedic with a valid Florida medical marijuana card who tested positive for marijuana under his employer’s drug-free workplace program. The court reinforced an important principle for employers: Florida’s medical marijuana law does not automatically require an employer to make an exception to an otherwise lawful drug-free workplace policy simply because an employee has a medical marijuana card.

For Florida HR and risk managers, the decision highlights the importance of having a clear, up to date and consistently enforced Drug-Free Workplace Policy. Employers should specifically address medical marijuana, positive marijuana test results, off-duty use, reasonable-suspicion testing, post-accident testing and safety-sensitive positions. Policies written years ago may not adequately address today’s medical marijuana environment or the practical challenges employers face when an employee presents a medical marijuana card after a positive test.

Employers should also recognize the difference between a positive marijuana test and evidence of workplace impairment. Marijuana testing can identify prior use without necessarily establishing that an employee was impaired at the time of testing. This makes supervisor training and documentation particularly important. Managers should understand how to recognize and document objective signs of possible impairment and when reasonable-suspicion or post-accident testing is appropriate.

Florida employers participating in the state’s statutory Drug-Free Workplace Program under Florida Statute §440.102 should take additional precautions. Maintaining a compliant program requires more than a handbook statement. Employers should identify and follow specific requirements involving employee notice, testing procedures, confirmation testing, Medical Review Officer review, confidentiality and employee challenges to positive results. The Florida statute contains all the details employers need to include in their comprehensive policy. Failure to follow the required procedures can undermine the protections and workers’ compensation benefits the program is intended to provide. To assist clients, Consultstu created a complete Drug Free Workplace Manual for Florida Employers.

The Giambrone decision is a good opportunity for Florida businesses to review policies before the next positive test, workplace accident or medical marijuana issue occurs. Consultstu provides Florida employers with HR and risk management support to create, update and review Florida Drug-Free Workplace policies, including medical marijuana language, reasonable-suspicion procedures, post-accident testing protocols, supervisor documentation and related employee forms.

The Florida Court of Appeals sided with the employer and supported employer policies designed to protect the safety of employees and the public. Key take aways: (1) A medical marijuana card is not a prescription since it is not dispensed from a pharmacist (it is authorized by physician certification); (2) medical marijuana law does not require accommodation and there is no cannabis exception; and (3) employer drug policies are not limited to on-duty conduct and that the governmental employer could reasonably have an expectation of continuous fitness for duty in a safety sensitive, first responder role.

A well-designed drug-free workplace program should protect a Florida employer while providing managers with a practical and consistent process to follow. With Florida’s marijuana laws and workplace issues continuing to evolve, employers should periodically review their policies to make sure their written requirements match both current law and actual workplace practices.

Fleet Telematics: How Driver Data Can Improve Safety and Reduce Insurance Costs

For companies that operate a fleet of vehicles, managing risk goes well beyond maintaining vehicles and checking motor vehicle records. Telematics has become a critically important tool for managing driver safety, controlling accident costs, and supporting a strong fleet safety program. When used effectively, telematics gives employers objective information about what is happening on the road and an opportunity to correct unsafe behaviors before they result in an accident.

What Is Telematics?
Telematics is technology installed in or connected to a vehicle that collects and reports information about how the vehicle is being operated. Depending on the system, it may track vehicle location, speed, mileage, hard braking, rapid acceleration, sharp turns, seat belt use, idle time, and other driving behaviors. Many systems can also integrate with dash cameras, providing additional context when a driving event or accident occurs.

For fleet managers, this information creates visibility that simply was not available through traditional fleet management practices. Rather than learning about risky driving only after a citation, complaint, or accident, managers can identify patterns as they develop. For example, repeated speeding, hard braking, or rapid acceleration may indicate that a driver needs coaching before those behaviors lead to a preventable collision.

Taking Action on Telematics Data. From an HR and risk management perspective, however, collecting the data is only half the job. Employers need to actually use it. A good telematics program should establish expectations for safe driving, regularly review driver data, and provide coaching when concerning trends appear. More serious or repeated violations should be addressed through the company’s normal corrective action process, including the possibility of employment termination. Key areas to monitor may include:

  • Speeding and excessive speed
  • Hard braking or rapid acceleration
  • Distracted or unsafe driving events
  • Seat belt compliance
  • Repeated high-risk driving patterns

Telematics and Insurance. Telematics can also play an important role in a company’s relationship with its insurance carrier. Commercial auto insurers increasingly consider fleet safety practices, loss history, driver controls, and available telematics information when evaluating risk. A strong program may help demonstrate that the company is actively managing its fleet exposure and can potentially contribute to better insurance pricing or available discounts. Conversely, a pattern of preventable accidents or unsafe driving that is identified but not addressed can make the fleet a less attractive insurance risk.

The key is to treat telematics as a driver improvement and risk management tool—not simply a monitoring system. Employees should understand what information is being collected, why it is being collected, and how the company will use it. Managers should also be trained to apply the program consistently so that similar driving behaviors result in similar coaching or corrective action. The company objective is to identify unsafe driver behaviors, attempt to change these behaviors and increase safe driving conduct. You will need to create the documentation that you can share with your insurance carrier that can lower your insurance rates.

HR Policies Needed for an Effective Telematics Program. Companies using telematics should have a written Fleet Telematics and Driver Monitoring Policy that clearly explains what technology is being used, what data is collected, and how the information will be used. The policy should address GPS/location tracking, speed, hard braking and acceleration, seat belt use, distracted-driving events, vehicle or dash-camera data where applicable, and other driver-safety metrics. Employees should be informed that company vehicles and driving activity may be monitored and should sign an acknowledgment consenting to the program. Just as importantly, the policy should establish clear standards for reviewing and responding to the data, including driver coaching, retraining, progressive discipline for repeated or serious unsafe behavior, accident investigations, and recognition of safe driving. HR should work with fleet operations and risk management to ensure telematics data is reviewed consistently, documented appropriately, retained securely, and used consistently. Monitoring and collecting unsafe driving data without management follow-up is very risky.

Ultimately, telematics gives fleet operators something extremely valuable: the ability to act before an accident occurs. When telematics data is combined with driver training, clear fleet policies, consistent driver coaching, vehicle maintenance, and management accountability, it can help reduce preventable accidents, protect employees and the public, control insurance and claims costs, and build a stronger overall culture of fleet safety.

AI in HR: 3 Easy Ways Florida Small Businesses Can Get Started

If you run a small business, HR is probably the thing you squeeze in between everything else. You don’t have a recruiting team or a benefits administrator. What you do have now is AI — tools that used to be built for big HR budgets are getting cheap and easy enough for a business of any size to use. Used well, AI can save you real hours on hiring, answering the same employee questions, and writing performance reviews. One quick rule to keep in mind throughout: let AI draft and organize, but always keep a person making the final call — that’s good practice, and it’s also your best protection, since anti-discrimination law still applies fully to AI-assisted decisions. Here are three practical ways to get started, with simple setup steps for each.

1. Let AI Help with Hiring

Sourcing candidates and reading resumes eats up hours. AI can source candidates, rank resumes against your criteria, and speed up scheduling. Here is how you set it up.

  • Start using a solid applicant tracking system (ATS) with AI built in — Zoho Recruit (~$30/month), JazzHR (~$75/month), and Breezy HR (free tier available) are solid, affordable options.
  • Before turning on AI ranking, ask it to review your job posting for biased or exclusionary language.
  • Set your own screening criteria based on the job’s real requirements — don’t let the tool invent its own criteria from resume patterns.
  • Always have a person review the shortlist before anyone is rejected. Never let the tool auto-reject candidates on its own

2. Build a simple AI chatbot for employee questions

Employees ask the same questions over and over. “How much PTO do I have?” “What’s the dress code?” The same questions repeat and an AI assistant trained on your own policies can answer most of them so you don’t have to. Here’s how you set it up.

  • Gather your source documents: employee handbook, PTO policy, benefits summary, FAQs on common HR questions, required workplace notices (drug free workplace, safety plans etc…).
  • Build it using a tool you likely already have — a Custom GPT in ChatGPT or a Project in Claude — and upload those documents. No need to pay for a separate chatbot platform yet.
  • Give it one key instruction: only answer from the uploaded documents, and send anything about pay, medical issues, discipline, or legal questions straight to you.
  • Test it with a few tricky questions before rolling it out, and make a habit of re-uploading documents whenever a policy changes.

3. Use AI for Performance Reviews

Performance reviews are easy to put off because staring at a blank page is hard. AI is great at turning your rough notes into a clear draft, or reviewing original data and reports to create a summary (just don’t let it invent the substance). How to set it up.

  • Have managers jot down specific, real examples of an employee’s work, then ask AI to turn those notes into an organized, well-worded review draft.
  • Instruct it clearly: use only what’s in the notes — no inventing accomplishments, incidents, or ratings.
  • Always have the manager review and edit before it goes to the employee, checking that the tone and rating match.
  • AI should not be relied upon to finalize terminations, PIPs, and disciplinary write-ups, without close review by HR or legal counsel.

Bottom Line: Across all three: AI drafts and organizes, a person decides. That’s not just the safe approach — it’s also where the real time savings are. You’re not removing yourself from hiring, policy questions, or performance conversations. You’re just freeing up time for the parts of the job that can really use it.

Closing the Hemp THC Loophole: What It Means for Florida Drug-Free Workplace Policies

If you’ve walked down the beverage aisle of a Florida grocery or convenience store in the last two years, you’ve seen them: seltzers and sodas infused with hemp-derived THC, sold next to the beer and kombucha, no dispensary card required. That entire category exists because of a gap in federal law — and Congress has spent the last year trying to close it. For HR and business leaders who maintain a drug-free workplace program, the details of how and when that gap closes matter a great deal, because they directly affect what shows up in a drug screen. Here’s the current state of play, and what it means for your drug-free workplace policy.

The Hemp Loop Hole and the November Deadline

The 2018 Farm Bill legalized hemp at the federal level, defined as cannabis containing no more than 0.3% delta-9 THC by dry weight. Manufacturers quickly realized they could make beverages, gummies, and vapes that were technically “hemp” under that formula but still delivered a real intoxicating effect, by using THCA, delta-8, delta-10, and other THC variants that the law never accounted for. That’s the “hemp loophole”: a product can be federally legal and still get you high. Congress closed the loophole in a law signed in November 2025, which redefines hemp more strictly and caps THC content in finished products. The new law redefines hemp using “total THC” — combining delta-9, THCA, delta-8, and related compounds — and caps finished hemp products at 0.4 milligrams of total THC per container. The catch: it gave the industry a year to comply, setting the deadline at November 12, 2026 — and that date has been shifting ever since.

Is November still the deadline? As of this week, no. The Senate just passed a stopgap funding bill pushing most of the new restrictions to December 11, 2026, giving Congress more time to negotiate. That delay doesn’t cover synthetic cannabinoids, which are still set to become illegal on November 12. And the delay itself isn’t final yet, so the date could move again before it’s locked in.

Florida has its own Hemp rules. Under Fla. Stat. § 581.217, the state already regulates hemp extract intended for human consumption, capping it at 0.3% total delta-9 THC by dry weight and requiring child-resistant packaging with QR-code links to lab results. Florida’s rules are separate from the federal law. Once the federal milligram-per-container cap takes effect, it will be considerably more restrictive than Florida’s current rule, which means products that are technically compliant with state law today may still become federally unlawful.

Why this matters for your Florida drug free workplace policy

Here’s the point that matters most for HR: whether these products stay legal or not, a standard drug test can’t tell hemp-derived THC apart from marijuana. Same metabolite, same result. An employee who has a hemp seltzer over the weekend can still test positive on a Monday drug screen, just like they would after using marijuana.

Florida’s Drug-Free Workplace Program (Fla. Stat. § 440.102) already gives participating employers wide latitude here — employers can act on a positive THC test regardless of the source, and regardless of whether the employee holds a medical marijuana card. If your policy is written around a positive test result rather than naming specific substances, hemp beverages are likely already covered. FL Section 381.986 does not require employers to accommodate marijuana use, on- or off-duty. Florida lawmakers are also considering bills that would add extra liability protection for employers acting on positive tests, which is worth watching.

What HR should do now

Employees should not assume “legal” or “sold at the store” means “won’t show up on a test.” First, write your drug free workplace policy around THC as an effect, not a product category, so hemp drinks and edibles are clearly covered. To make it clear, you could also add a specific reference to these products in your policy. Review your drug-free workplace policy language before year-end to make sure it’s not limited to “marijuana” or “cannabis” by name, and define prohibited substances by their pharmacological effect (THC, regardless of source), or include a reference to hemp derived products as also prohibited.

Second, train supervisors to recognize impairment from THC beverages, which are marketed and used more like alcohol than like traditional cannabis products. Know what the products look like, and make sure they are prohibited in the workplace and not used at work.

Third, keep an eye on the December 11 and November 12 dates, since either could still shift as Congress finalizes the funding bill. This is still an unsettled, moving target, and it’s likely to keep shifting through the fall. The safest move isn’t to wait for Congress, but to make sure your policy already treats hemp-derived THC the same as any other THC product. Also watch the Florida Legislature to see if they enact additional employer protections.

New! Florida Dental Office HR & Safety Compliance System

Running a successful dental practice requires more than providing exceptional patient care—it also means staying ahead of ever-changing HR, OSHA, Privacy, and Florida regulatory requirements. For many Dentist Owners, creating compliant policies, safety programs, employee forms, and onboarding documents from scratch can be overwhelming and time-consuming. That’s why ConsultStu developed the Florida Dental Office HR & Safety Compliance System—a comprehensive, ready-to-use toolkit designed specifically for new practice owners, dentist owners and dental office managers in Florida. From new hire documentation and HIPAA privacy policy to OSHA safety programs, infection control plans, and dental-specific job descriptions, this all-in-one resource provides the essential documents needed to establish a strong HR and compliance foundation.

Whether you’re opening a new practice, acquiring an existing office, or simply updating outdated policies, our start up compliance system helps save valuable time while reducing compliance risk. Instead of searching for templates from multiple sources, you’ll receive professionally developed documents that are organized, customizable, and tailored to the unique needs of Florida dental offices. Best of all, the packet is backed by the expertise of ConsultStu’s fractional HR professionals.  In addition, you have access to ongoing guidance for your practice, when you need extra advice and assistance.  Let us help you build a safe workplace, streamline your HR processes, and focus on what matters most—providing outstanding patient care.

The Florida Dental Office HR & Safety Compliance System is now available for only $495. This affordable, ready-to-use system gives dental practice owners a practical way to organize key HR, safety, OSHA, HIPAA, and compliance documents without spending hours building everything from scratch. For new offices, growing practices, or teams that need to update outdated materials, this system offers a simple and cost-effective way to start strong.

Can a Salaried Exempt Employee Perform Additional Work at Hourly Rate (is OT implicated)?

The Department of Labor releases opinion letters designed to promote clarity, consistency, and transparency in the application of federal wage and hour standards. Opinion letters explain how the laws enforced by Wage and Hour apply in specific situations and circumstances that are faced by employees and employers. In May 2026, the DOL provided an opinion that the performance of additional non-exempt work at an hourly rate is insufficient to alter the employee’s exempt status under the FLSA as long as the employee’s primary duty remains the performance of exempt work and the salary requirements continue to be met.

Salaried Nursing Specialist (exempt)

An academic medical center that operates as a non-profit acute care hospital employs staff in capacities of Staff Nurse and Nursing Professional Development Specialist. A staff nurse formulates clinical decisions for patients utilizing a multi-dimensional plan of care with the nursing process. They are paid hourly, plus additional compensation for night and weekend differentials, and are eligible for OT. The Nursing Professional Development Specialist identifies gaps in learning opportunities, designs educational programs, onboards new staff and advances the professional development of all staff, and conducts ongoing competency processes. They are salaried, exercise significant autonomy and judgment on where to provide support to Staff Nurses.

Compensated for Extra Staff Nursing Shifts

The Nursing Professional Development Specialist receives a salary and provides no additional compensation for hours worked over 40 in a work week in the Specialist role. However, a Specialist may pick up shifts as Staff Nurse per week on weekend. The extra shifts can make up 23 to 38% of their total hours worked in a week. Can the hospital employ an individual in both exempt and non-exempt capacity? Is overtime implicated?

DOL Regulation Focuses on Primary Duty

According to the DOL, if an employee performs work in both exempt (e.g., Specialist) and nonexempt (e.g., Staff Nurse) roles in the same workweek, the employee meets the duties requirements for an exemption if the employee’s primary duty remains the performance of exempt work. In this case, the Specialist’s primary duty remained their exempt Specialist work. Picking up 1 or 2 shifts per week did not change the primary role. The Wage and Hour regulations allows an employer may provide the employee with “additional compensation” without violating the salary-basis requirement, including “additional compensation based on hours worked for work beyond the normal workweek. See Section 541.604(a). Such additional compensation may be paid on any basis (e.g., flat sum, bonus payment, straight time hourly amount, time and one-half or any other basis. So, the hospital could pay either regular rate or overtime rate, without violating the exemption. Read the Opinion Letter, FLSA2026-5.

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