WAGE AND HOUR ISSUES: FAIR LABOR STANDARDS ACT

1
WAGE AND HOUR ISSUES FAIR LABOR
STANDARDS ACT

• Colleen B. Mendel, MBA
• Executive Director
• Training Technical Assistance Services

2
What should your agency do?

• Review and revise employee classifications
• -Convert low-paid personnel (lt455/wk) to
  non-exempt status
• -Convert misclassified employees to non-exempt
  status
• -Use this opportunity to correct past policies
  without raising eyebrows

3
What should your agency do?

• Review payroll practices
• -Review sample payroll runs for salary of
  part-time and other workers and the 455/wk
  threshold
• -Make sure you are complying with the salary
  basis test
• -Train managers and payroll workers to avoid
  impermissable deductions

4
What should your agency do?

• Review and revise job descriptions
• -Better describe actual duties
• -Emphasize exempt duties
• -Describe discretion and independent judgment
  where applicable
• -Expressly give executives authority to
  hire/fire or to make recommendations given
  particular weight
• -Weigh and document the determination of a
  positions primary duty
• -Document why workers are exempt and under what
  exemption
• -Seek counsel for close classification issues

5
What should your agency do?

• Revise Personnel Policies Procedures
• -To comply with salary basis test
• -To allow disciplinary deductions in full day
  increments (after August 23, 2004)
• -To define your work week
• -To distinguish policies for exempt workers from
  non-exempt salaried and hourly workers
• -To add the safe harbor policy to allow
  correction of improper deductions

6
What should your agency do?

• Revise financial policies procedures
• -To add the safe harbor policy to allow
  correction of improper deductions
• -To ensure ongoing compliance with salary basis
  test
• -To allow for Highly Compensated test
• -To include impermissable deductions
• -To ensure proper payment of overtime

7
What else should you do?

• Be prepared to implement new policies, procedures
  and practices on August 23, 2004.
• BUT
• Watch the financial publications and the news to
  see if Congressional or court action delays the
  effective date of the Fair Pay Rules, requires
  certain changes, or remands to DOL for revision.