Government Contractor

A government contractor recently audited by the Dept. of Labor faced issues with proper classification of several positions under FLSA. Following the audit remediation actions, the organization’s HR leadership determined that an independent audit of a broader set of positions was necessary to mitigate further compliance concerns and possible penalties by the DOL. In addition, training for recruiters and HR generalists (and eventually managers) was necessary to reduce the likelihood of FLSA misclassifications in the future.

Our consultant worked with the internal HR team to identify several job families of positions where FLSA misclassification seemed likely due to the nature of the work. A project plan and job review methodology was established to provide the HR team with a repeatable framework and process they could complete on their own. The consultant oversaw the project timeline, assisting the HR team where necessary to collect the required job information to correctly assess the FLSA statuses.

Based on the results of the FLSA assessments, the consultant recommended an approach to make the FLSA corrections, some of which required back pay calculations. Equally important, more stringent job classification guidelines were established to clearly delineate exempt versus nonexempt duties within each of the targeted job families. This was critical for ensuring FLSA compliance on a go forward basis.

Train-the-trainer style briefing was delivered to the recruiting and HR generalist teams, who in turn provided a modified version of the training to line managers. The FLSA training material has continued to be modified and updated, and has become part of the mandatory management training program for the company. As managers are increasingly held accountable as stewards for compliance in their companies, the inclusion of FLSA along with other critical employee-related regulations into such training programs will reduce the likelihood of costly penalties and ensure employees are protected as intended by such laws.