Keith Markel, Jessica Lipson and Alana Mildner Smolow Publish Article on AI and Wage and Hour Laws, the Fourth in Their Reuters Series
Keith Markel, Jessica L. Lipson and Alana R. Mildner Smolow published a fourth article in their series for Reuters that explores how artificial intelligence impacts employment-related matters. In “AI and Wage and Hour Laws: What Employers Need to Know,” the authors discuss how the use of AI tools in business has the potential to change employees’ work responsibilities, and therefore potentially their exemption status under federal and state overtime laws.
Under the Fair Labor Standards Act, covered employees in the United States must be paid a rate of time-and-one-half for hours worked over 40 per workweek, unless they fall into one of several exemption categories.
“As employers increasingly turn to AI-powered solutions, there is the potential that entrusting certain activities to AI models may reduce the need for human employees to exercise discretion and independent judgement in business decisions,” the authors stated. In order to avoid potential misclassification claims, employers should continuously review the duties of their workers and be mindful that changes to employees' job responsibilities based on the use of AI tools may require employers to re-classify workers' exemption status under federal and state overtime laws.
Read the full article here.
Contacts
- Keith A. Markel Partner & Co-Chair, Labor & Employment
- kmarkel@morrisoncohen.com
- Jessica L. Lipson Partner & Co-Chair, Technology, Data & IP
- jlipson@morrisoncohen.com
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