5 Steps to FLSA Compliance

The Fair Labor Standards Act (FLSA) specifies standards for minimum wage and overtime pay as well as restricts the age when children can begin working. It requires employers to pay covered employees who are not otherwise exempt at least the federal minimum wage and overtime after 40 hours of work in a workweek of one-and-one-half-times their regular

The new FLSA ruling has many businesses needing to reclassify employee status to accommodate the new minimum salary level eligible for overtime pay. And, if this weren’t enough, companies are now finding it even more challenging explaining to an exempt employee that their position is going to be reclassified.

UPDATE 5/18: President Obama finalizes FLSA changes on salary and compensation levels for “white collar workers.” The new legislation aims to better define exemptions for executive, administrative, and professional personnel. For employers to be considered staff exempt, employees must meet certain minimum tests related to their primary job and be paid accordingly on a salary