The Hidden Cost of Being "Too Nice" to Employees

A well-meaning business owner tried to “take care of” his top employee and nearly triggered a $50,000 legal disaster. By paying a non-manager on salary and misclassifying him as exempt from overtime, he unintentionally violated labor law. This story reveals how good intentions can backfire when employers misunderstand wage and hour rules — and offers a clear reminder that compliance isn’t optional. Every business owner should regularly verify employee classifications to avoid costly penalties and protect both their team and their company.

Martin HollandNovember 5, 2025Martin Hollandemployee classification, overtime law, business compliance, labor law, small business, HR mistakes, wage and hour, management tips, business coaching, legal riskComment