2022 FLSA Compliance Virtual Master Class: Advanced Skills for Wage and Hour Management

The financial stakes are huge if your company isn’t fully compliant with the Fair Labor Standards Act (FLSA) and applicable Department of Labor (DOL) regulations. It is even more crucial in light of the COVID-19 pandemic.

This opening session will provide a succinct summary of:

• Which states and localities have established predictive scheduling laws and which states prohibit these laws
• Where state legislation banning employers from inquiring about applicants’ salary history has already gone into effect and where new legislation is expected to pass
• DOL clarification on how to determine employees’ regular rate of pay and what forms of payment employers can include and exclude in the overtime pay calculation
• The increased risk of liability for employers under the FLSA for collective and class actions and more
• The rule on joint employment, which aims to ensure employers in joint employment situations clearly understand their responsibilities to pay workers at least the federal minimum wage and overtime

The FLSA provides that, in addition to minimum wage, employees must be paid overtime at a rate of not less than one and a half times their regular hourly rate for all hours worked over 40 during a 7-day workweek. Certain categories of employees are exempt from the requirements. For these “exempt” employees, you do not need to track their time or pay overtime. Obviously, this is an appealing scenario for employers. However, exemptions from the overtime requirements of the FLSA are just that—exceptions to the rule. Exemptions are very narrowly construed, and you, as the employer, will always bear the burden of proving that you have correctly classified an employee as exempt.

Deciding how to classify a new hire is one of the most important decisions an employer will ever make, as mistaken classification can lead to enormous potential exposure and financial impact on a company if the classification turns out to be incorrect. Yet, unfortunately, FLSA exemptions are commonly misunderstood and misapplied even by employers that are attempting to comply with the law. Wage and hour attorneys will walk you through what to do and how to ensure your organization is in compliance with the law. You’ll learn:

• Key salary factors to consider when determining whether an employee is exempt or nonexempt, including salary level, the salary basis test, additional payments beyond an employee’s salary, and fee basis payments
• Which exemptions are not subject to the salary requirements
• The ins and outs of highly compensated employees
• How often the DOL will update the salary level going forward and the fate of automatic updates
• Cost-minimizing strategies for classifying employees
• How deductions from pay enter into your analysis
• How to develop a communication plan when it comes to overtime classification
• How to head off concerns that going from exempt to nonexempt status is a demotion
• Where the duties tests stand now that the DOL’s overtime rule is in effect
• Key test factors to determine whether an employee passes the duties tests for the executive, administrative, professional, computer professional, and outside sales exemptions, as well as employees in education
• Whether you should change an employee’s duties to qualify the employee for either the exempt or the nonexempt classification
• How important job titles are when it comes to passing the duties tests
• Why some employees labeled “managers” and “assistant managers” may be nonexempt and entitled to overtime in the DOL’s eyes
• Tips for avoiding a DOL overtime audit

Overtime calculations can get tricky when employees are paid a salary but work over 40 hours, they work a different number of hours each week, or they are paid by the piece-rate method. What about fluctuating workweeks, commissions, and compensatory time? These scenarios can end up costing employers millions when they fail to correctly pay overtime. It is vitally important for employers to make confident and correct calculations. You’ll learn:

• What a “workweek” is under FLSA rules
• The proper timing of overtime pay
• When compensatory time can be used legally
• How payments on an hourly basis, on a salaried basis, and at different hourly rates differ
• Key factors regarding fluctuating workweeks
• Payment rules for piece-rate and day-rate employees
• How commissions factor into overtime payments
• The rules that apply to fire protections and law enforcement personnel
• What to include when determining total compensation

We’ll wrap up the day by giving you the opportunity to get your specific questions answered by our expert, well versed in the complexities of wage and hour compliance, with clear instructions for adjusting your practices in light of the very latest legal developments.