Compensation Plan Design

Fair Labor Standards Act (FLSA)

Helping clients tackle real issues in employee pay.

FLSA Review

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.

FLSA Compliance

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, the 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.
Resources

FLSA and compensation resources, free to download.

More Webinars Are on the Way

We're working on our next lineup of webinars. Stay tuned for new sessions and registration details coming soon.
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The Missing Link Between People, Pay, and Performance: Why Job Architecture Matters More Than Ever

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Positive Psychology for Teams

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The Playbook for Turning Reviews into Action, Growth, and Accountability

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The HR Horizon: What HR Needs to Know for 2027

Get in Touch

Review your classifications before misclassification becomes costly.

  • Each engagement begins with a structured review of job descriptions, actual duties, salary basis, and current classification records before recommendations are made.
  • Our consultants review exemption classifications position by position and document the basis for each recommendation.
  • We deliver complete plan documentation, financial modeling, and implementation support - including sales rep communication materials and manager training on how to administer the new plan.
  • No long-term contracts required. Engage for a single plan audit and redesign or build an ongoing advisory relationship for annual plan reviews and adjustments.
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