The rapid increase in AI adoption, nearly doubling over the past two years, especially in technology, finance, and professional services, is raising the likelihood that roles such as accountants and HR professionals may no longer qualify for overtime exemptions under the Fair Labor Standards Act (FLSA), since AI is increasingly performing tasks that once required human discretion and independent judgment. As partner Zack Domb warns, “the foundation starts to crack” on exempt status when AI assumes core responsibilities, a shift that could prompt more misclassification claims and leave employers exposed to significant wage-and-hour liability.
