Employers should begin preparing company budgets now for a Fair Labor Standards Act (FLSA) proposed rule, expected in the first quarter of 2015.
Employers should begin looking at classifications once the proposed rule is issued since it is likely that not many changes will be made between the proposed and final rules. If employers wait for the final rule, there may not be enough time to make the changes needed to avoid the scrutiny of the DOL.
Employers must also keep in mind that an internal audit of FLSA classifications can be quite expensive. It can cost up to a few thousand dollars per job to review whether there is proper classification, evaluations of job descriptions and interviews with employees, while becoming conversant with new regulations. Then if reclassification is needed, the human resources information system may have to be changed with adjustments for benefits. Compensation itself may have to be completely redone.
For more information regarding the FLSA proposed rule and preparing your company, contact Kellie Boysen at 717-855-5589.