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Fair Labor Standards Act (FLSA) Classification Review

Workplace Dynamics can conduct a position analysis to ensure that your positions are properly classified under FLSA.  A thorough position analysis involves reviewing the job content and identifying the primary duties of the job. 

Primary duties refer to several factors including:
(1) percentage of time spent,
(2) relative importance of duties,
(3) freedom from supervision, and
(4) pay relationships.   

The key to proper and defensible FLSA classifications is an effective position analysis.

Current, accurate and detailed position descriptions can be used for this evaluation process. If more detailed information is necessary, we can work directly with the responsible manager to request specifics about the position.  Based on all the information provided on the position content, we will identify the proper FLSA classification.  After all your positions have been analyzed and assigned a classification, it is important to remember that changes in position requirements or creation of new positions must go through a similar analysis.

We understand that you may want to conduct your own assessment of your position classifications or have a tool to assist you when creating new positions.  To take on this task, it is important that you have a strong understanding of the FLSA.  The best way to get all this knowledge in one place is in our customized Employers Guide to FLSA Exemptions.

Workplace Dynamics will tailor a guide for your organization that will answer the most common employer questions related to the FLSA, including the following:
(1) What is the Fair Labor Standards Act?
(2) What are work hours?
(3) How do I record hours worked?
(4) How do I correctly classify a position as exempt or non-exempt?
(5) How do I protect the exempt status of a position?
(6) What are the record-keeping requirements? 

We will also include a checklist for each established classification that employers can use to conduct their own position classification evaluations.
 
Facts
The Employment Standards Administration’s Wage and Hour Division (WHD) recovered more than $185 million in back wages for 228,64 5employees in FY 2008.  WHD closed out 28,242 compliance cases and assessed employers $3.1 million in civil penalities.  Eight-eight percent of FLSA back wages were paid out as a result of overtime violations.  These may have resulted in improper FLSA classifications by employers as shown below in the recent legal case settlement.


 

Legal Case Settlement
October 2011  A U.S. District Court Judge ruled that Fairfield, OH based Cascom Inc. misclassified employees as independent contractors and therefore, did not properly compensate them as required by the FLSA. Cascom provides residential cable TV, Internet, and telephone installation services to Times Warnes in the Dayon OH area. Because of the misclassification, Cascom will pay back wages in excess of $800,000 to approximately 250 installers.   
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