Economic downturns frequently result in companies analyzing possible cost-cutting measures in all aspects of operations. Companies in the hotel industry, and particularly smaller franchisees, frequently avoid layoffs as a cost-cutting measure whenever possible; instead, they increasingly defer to classifying administrative employees as “salaried exempt” to save costs associated with overtime. An aggressive approach to using this designation has resulted in hotels becoming involved in wage-hour litigation where, in states like California, they end up with more exposure than the savings enjoyed by the re-classification. The following article reviews exemptions available to administrative employees in the hotel industry and the framework for an initial checklist that can be utilized to ensure cost savings, proper classification and risk prevention. READ MORE