The Fair Labor Standards Act (FLSA) establishes guidelines related to minimum wage, overtime pay, record-keeping, and child labor. Some companies find themselves facing legal challenges when they inappropriately classify employees as exempt or nonexempt for the purpose of overtime payments.
You have discovered that Elora Jean & Co. has classified many of its nonproduction positions as exempt.
As the human resources (HR) legal consultant contracted to review all HR policies, you are concerned with legal exposure, union challenges that may result, and poor tracking of hours worked for the purpose of paying overtime.
You plan to prepare a presentation for Elora Jean & Co.'s owner, outlining your observations, concerns, and recommendations, keeping in mind the company's desire to remain competitive while adhering to employment laws.
Components of this presentation will include the following:
Discuss the key components of the FLSA overtime requirements, focusing specifically on considering the legal distinction between exempt and nonexempt employees.
Generalize how FLSA will affect Elora Jean & Co.'s ability to classify employees as exempt or nonexempt in relation to the payment of overtime, and determine at what point overtime is paid with regard to hours worked. Research of federal and Indiana state laws is necessary.
Discuss the implications of improperly paying union staff and not having a defined overtime policy as it relates to labor relations.
Discuss the legal implications of improper classification.
Develop a procedure that Elora Jean & Co. can use to equitably manage overtime at its facilities.
Formulate strategies that you recommend to ensure that Elora Jean & Co. accurately classifies employees as exempt or nonexempt. Discuss the roles that job analysis and job descriptions play in the process.
Discuss the record-keeping requirements imposed by the FLSA.
Address legal issues of minimum wage, overtime pay, record keeping, and child labor for the Malaysian facility. Assess possible HR policy differences in the Malaysian operation and how they may affect Elora Jean & Co.'s domestic workforce.