Are your employees classified correctly according to the Fair Labor Standards Act (FLSA)? What kind of impact can it have on your organization if they aren’t?
Misclassified employees as exempt create exposure to not being in compliance with FSLA. If the employee does not meet the test to be exempt, employers could have exposure for three years of overtime, rest, and meal periods exposure. To meet an exempt classification, a job must pass a “test” consisting of three prongs outlined in the FLSA regulations – salary level, salary basis, and duties. If the employee does not meet the salary test, they cannot be exempt. The longer you wait to reclassify your employees the more expensive it may be. And because job duties change over time, what was once an appropriate classification maybe a year or two ago can now be a misclassification.
RTR Consulting Inc. helps our clients meet the requirements of the FLSA, by reviewing positions’ exempt/non-exempt status, job descriptions, job analysis as well as overtime policies and procedures. RTR Consulting Inc. utilizes the most current regulations, as well as the Department of Labor information to provide best practice recommendations for position classifications.