A 5-Step FLSA Checklist

July 19, 2016


Ask any comp professional how things are going and the first thing you will hear is FLSA, FLSA, FLSA. And, by the way, although the timeline was pushed back, the deadline for compliance is now in the middle of the busiest period for compensation management – year-end comp planning. Yikes!


First, take a deep breath, go to a quiet corner and develop a strategy. Here are 5 points that you should consider:

  1. First, are your jobs currently designated as “Exempt” classified correctly? Remember, the job must not only meet the salary threshold, but also meet the duties test;

  2. Second, after you have identified your “Exempt” jobs, review pay;

  3. Third, determine the cost of increasing the pay of exempt employees below the pay threshold;

  4. Fourth, determine your recommendations based on #1-3:

    • Increase pay for all exempt employees below the new threshold?

    • Make some jobs non-exempt (look at cost to increase pay vs. paying OT)? This may also be a good time for job or organization re-design, partner with your organization effectiveness team.

    • How will you address jobs with a mix of incumbents above and below the threshold?

    • What is your communication plan, including leadership and impacted employees?

  5. And lastly, make sure those travel tickets are fully refundable… March is a lovely time to travel. Of course, if you’re involved in compensation management, you already know this.







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