Why Exempt Salaries Often Fail
Thu Feb 05 2026
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In this episode, you’ll learn why exempt salaries often fail in private practices—even when they look like a clean solution for predictable payroll. The episode breaks down what “exempt” actually means under the Fair Labor Standards Act (FLSA) (fixed salary, no overtime eligibility, and strict duties tests) and why many practice owners unintentionally create risk by using “salary” as a shortcut instead of a compliance-based classification.
You’ll hear the most common failure points: misclassification exposure (back pay, penalties, audits, reputational damage), morale erosion when overtime work goes uncompensated, and loss of payroll flexibility due to guaranteed pay rules when any work occurs in a workweek. The episode also explains how exempt status rarely delivers true autonomy in clinical settings with rigid schedules—and why this mismatch quietly undermines trust.
Finally, the host outlines practical alternatives—such as hourly pay plus incentive-based bonuses—that deliver clearer compliance, stronger motivation, and fairer compensation without locking the practice into rigid exempt-salary constraints.
Welcome to Private Practice Survival Guide Podcast hosted by Brandon Seigel! Brandon Seigel, President of Wellness Works Management Partners, is an internationally known private practice consultant with over fifteen years of executive leadership experience. Seigel's book "The Private Practice Survival Guide" takes private practice entrepreneurs on a journey to unlocking key strategies for surviving―and thriving―in today’s business environment. Now Brandon Seigel goes beyond the book and brings the same great tips, tricks, and anecdotes to improve your private practice in this companion podcast.
Get In Touch With Me
Podcast Website: https://www.privatepracticesurvivalguide.com/
LinkedIn: https://www.linkedin.com/in/brandonseigel/
Instagram: https://www.instagram.com/brandonseigel/
https://wellnessworksmedicalbilling.com/
Private Practice Survival Guide Book
This show is proudly produced at PS Studios — learn more https://www.psstudios.co
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Send us a text In this episode, you’ll learn why exempt salaries often fail in private practices—even when they look like a clean solution for predictable payroll. The episode breaks down what “exempt” actually means under the Fair Labor Standards Act (FLSA) (fixed salary, no overtime eligibility, and strict duties tests) and why many practice owners unintentionally create risk by using “salary” as a shortcut instead of a compliance-based classification. You’ll hear the most common failure points: misclassification exposure (back pay, penalties, audits, reputational damage), morale erosion when overtime work goes uncompensated, and loss of payroll flexibility due to guaranteed pay rules when any work occurs in a workweek. The episode also explains how exempt status rarely delivers true autonomy in clinical settings with rigid schedules—and why this mismatch quietly undermines trust. Finally, the host outlines practical alternatives—such as hourly pay plus incentive-based bonuses—that deliver clearer compliance, stronger motivation, and fairer compensation without locking the practice into rigid exempt-salary constraints. Welcome to Private Practice Survival Guide Podcast hosted by Brandon Seigel! Brandon Seigel, President of Wellness Works Management Partners, is an internationally known private practice consultant with over fifteen years of executive leadership experience. Seigel's book "The Private Practice Survival Guide" takes private practice entrepreneurs on a journey to unlocking key strategies for surviving―and thriving―in today’s business environment. Now Brandon Seigel goes beyond the book and brings the same great tips, tricks, and anecdotes to improve your private practice in this companion podcast. Get In Touch With Me Podcast Website: https://www.privatepracticesurvivalguide.com/ LinkedIn: https://www.linkedin.com/in/brandonseigel/ Instagram: https://www.instagram.com/brandonseigel/ https://wellnessworksmedicalbilling.com/ Private Practice Survival Guide Book This show is proudly produced at PS Studios — learn more https://www.psstudios.co