Classifying Jobs to Comply with FLSA/541
Primary Duty . . .
Independent Judgment . . .
Matters of Significance. . .
Salary Basis. . .
So many terms and difficult to interpret. Enacted by Congress in 1938 to guarantee minimum wages and overtime standards for employers, the provisions of FLSA have undergone a number of amendments throughout its history. One of the most significant changes applicable to the 541 Code of Federal Regulations was adopted on April 23, 2004. The 541 regulations govern the classification of jobs as either exempt or non-exempt.
PORTICO can help you:
- Audit your current job documentation, analysis and classification tools and outcomes
- Implement job documentation and job analysis tools that are the foundation for 541 classification
- Develop methodologies and tools for 541 classification in multi-incumbent and multi-divisional environments
- Determine Exempt and Non-Exempt classification in multi-duty and/or cross trained work systems in which job classification maybe “gray”
- Determine overtime pay exposure for nonexempt employees who work two different jobs
- Conduct job analyses on all types of jobs
- Interpret and apply the exemption tests to your jobs to result their accurate 541 classification
- Facilitate or train your Human Resource staff to apply 541 regulations.
Whether you have 5 jobs or 500,000 jobs, accurately classifying jobs, as exempt or non-exempt, is essential to ensuring compliance and equity. Right now, there are numerous FLSA/541classification cases in the courts that will produce millions of dollars in back wages for employees whose jobs have been misclassified. Department of Labor (DOL) investigations in 2003 resulted in $212 million in back wage payments (up 21% from 2002). PORTICO has extensive technical experience in classifying thousands of jobs across countless industries and sizes or organizations. In addition, we have customized classification tools for evaluating jobs found in cross-trained and multi-incumbent work environments such as sales, service and operations call centers.
