Among the most active wage and hour compliance areas has been determining which employees are exempt or nonexempt for the purpose of overtime pay under the Federal Labor Standards Act.  The Department of Labor has developed criteria employers must apply when determining whether an employee is exempt or nonexempt, but these criteria can be unclear and subjective, which has resulted in a steady stream of lawsuits, a situation not much improved with the issuance of DOL’s updated and clarified regulations in August 2004.  Over the past five years, there has been a substantial increase in wage and hour litigation in worker classification.  Employers and in some cases entire industries have been found noncompliant which has resulted in enormous back pay liabilities.  DOL has made FLSA enforcement a top priority and overtime violations have been put on the top of the list.

Part of Total Team Solutions HR outsourcing solutions is to help our clients to become fully compliant with federal & state wage and hour laws.  Maintaining the best workplace policies and procedures in order to stay compliant with changing laws and regulations is a business necessity for all employers regardless of a company’s size or industry.  The price of noncompliance is penalties, lawsuits and reduced productivity.