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In the context of employment law, when a position is improperly classified as exempt from overtime payment, both the staffing agency and the client may bear liability for any unpaid overtime wages.

This is because the Fair Labor Standards Act (FLSA) stipulates specific criteria for classifying an employee as exempt, and failure to comply with these regulations can lead to liability issues. When a staffing agency provides employees to a client, there is often a shared responsibility for ensuring that employees are correctly classified.

The staffing agency has the obligation to evaluate the job duties and pay structure to determine the appropriate classification. However, the client also has a role in maintaining compliance with labor laws, particularly if they have significant control over the employee's work environment and duties. As such, if an employee misclassified as exempt alleges unpaid overtime, both the staffing agency and the client can be held accountable for those payments. This reflects the understanding that both parties can influence the employment relationship and the classification decisions.