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The Fair Labor Standards Act (FLSA) establishes guidelines related to minimum wage, overtime pay, record-keeping, and child labor. Some companies find themselves facing legal challenges when they inappropriately classify employees as exempt or nonexempt for the purpose of overtime payments.
You have discovered that Elora Jean & Co. has classified many of its nonproduction positions as exempt. As the human resources (HR) legal consultant contracted to review all HR policies, you are concerned with legal exposure, union challenges that may result, and poor tracking of hours worked for the purpose of paying overtime. You plan to prepare a presentation for Elora Jean & Co.'s owner, outlining your observations, concerns, and recommendations, keeping in mind the company's desire to remain competitive while adhering to employment laws.
Components of this presentation will include the following:
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