COMPENSATION PLAN DESIGN
Fair Labor, Standards Act (FLSA)
Helping clients tackle real issues in employee pay.

COMPENSATION PLAN DESIGN
Fair Labor, Standards Act (FLSA)
Helping clients tackle real issues in employee pay.


FLSA Review
The Fair Labor Standards Act (FLSA) requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a work week.
However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. To qualify for an exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than prevailing wages per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the Department’s regulations.

JER HR Group helps you determine exemption status, by job description.
For each position selected for FLSA review, JER HR Group will:
- Review the job description.
- Apply the appropriate FLSA exemption test(s) under current regulations.
- Wages Test: Minimum pay threshold for overtime exemption. If pay is over the threshold, employee may be exempted from overtime in certain circumstances. Under the Wages Test, an employee must be eligible for overtime pay regardless of their rank or job duties.
- Duties Test: As provided by the FLSA, the Department of Labor (DOL) enforces seven classes of potentially exempt workers, including Executive, Administrative, Creative and other exempt employees. Within each of these classes, an employee’s responsibilities and role within the broader organization are considered.
- Prepare a chart listing each position title reviewed, with recommendations for exemption status and comments relevant to the determination of the status for each job.
- Integrate the FLSA review results into the Salary Grade and Range Structure within a Compensation Plan. This includes reviewing the required qualifications, education and experience to ensure they are consistent with FLSA status; assess whether the FLSA status of jobs within an assigned Job Grade/Band is consistent or if there are outliers; and, if there are outliers, flag them to determine if jobs should be reclassified.
Resources
JER HR Group and NexaLearning jointly announce their plans for NexaLearning to join JER HR Group effective immediately. …
JER HR Group and Human Resources Plus jointly announced JER HR Group’s acquisition of Human Resources Plus, Inc. today. Human Resources Plus (HRP) is a HR consulting firm and online HR document provider …
JER HR Group LLC acquires Willis HR LLC, a HR Consulting firm. JER HR Group and Willis HR jointly announce JER HR Group’s acquisition of Willis HR in a private transaction. Willis HR is a leading HR consulting …
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