With the recent implementation of artificial intelligence (AI) in the workplace, the line between who is performing those duties — people or AI — can become less clear. While AI is undoubtedly a useful tool, it also can create shifts in workers’ duties which may raise issues concerning employees’ classification. Specifically, when AI replaces certain duties of employee classified as exempt, some of those employees may not maintain their exempt status and therefore would be entitled to overtime.
By way of example, if AI assumes managerial tasks such as decision-making, scheduling, supervision, or planning, previously exempt classified employees may be eligible for overtime compensation. One of the hallmarks of a managerially-exempt employee is the authority to hire or fire other employees. Similarly, one of the criteria for administratively-exempt employees is the ability to exercise discretion over matters of significance. However, when AI is utilized to determine employees’ productivity through tools like tracking keystrokes, mouse clicks, presence in front of webcam, and website browsing, previously managerially/administratively exempt employees may find themselves simply implementing AI suggestions rather than exercising discretion over those decisions, including hiring and firing, as well as others.
If you are an exempt employee who has had some duties assumed by AI, your exempt status may be in question and you may be entitled to overtime. Should you have any concerns about how AI has affected your eligibility for overtime, please contact Shavitz Law Group.