One FLSA issue has been receiving extraordinary attention from the government. BLR has prepared a brand new Special Report to help you stay clear of this suddenly "red-hot" problem. Here are the details:

Uncle Sam's got a dragnet out for FLSA violators. Top corporations have been caught in it

This Special Report can protect you from sharing their fate.

If you feel a chill every time you do payroll these days, it's probably because of news headlines like these: "Starbucks Settles DOL Overtime Suit for $18 million," or "Farmers Insurance to Pay $90 million in Back Wages."

Those headlines are evidence of the incredibly aggressive stance the Department of Labor's Wage and Hour Division has recently taken on violations of the Fair Labor Standards Act (FLSA) provisions classifying workers as exempt from receiving overtime.

One factor that's motivated DOL: Audits have shown that perhaps half of all U.S. employers improperly classify workers who should have been non-exempt as exempt. That's a major FLSA violation.

Some of this misclassification is undoubtedly intentional. But compliance experts also believe that much be due to the complexities of FLSA. "The law presents a maze of rules, job categories and qualifications that are vague and very difficult to understand," says a recent BLR Special Report.

That 44-page report is called FLSA Overtime: Making Your Way Through the Exempt/Non-Exempt Minefield. We strongly advise that you read it as soon as possible!

"Salary Level," "Salary Basis," "Duties Test": The three tests made easy

Before you can classify an employee as exempt, you need to apply the "Salary Level Test," the "Salary Basis Test" and the "Duties Test" to his or her compensation and job description.

The FLSA Overtime Special Report will show you the easy road to doing it, by taking you through each test and defining every key term, definition and requirement in quick-reading bullet points and in plain English,

We'll also give you insights on how to use the results of the test process to actually help your company save money.

• For example, as you read about the Salary Level Test, you'll find that if you pay a computer worker $27.62 an hour, he or she is likely non-exempt. But add just a penny to that hourly and the classification changes. Given the hours that IT workers put in, this slight raise could contribute strongly to your bottom line.
• In the Salary Basis Test, we'll explain the characteristics that define a salaried employee. But we'll also tell you how even a fee-paid worker can fall into the exempt category. And we'll explain where such variances as disciplinary deductions of pay and time spent on FMLA leave enter the equation.
• The most complex element is the Duties Test. There are separate versions of the test for each category of exempt employees, including executive, administrative, professional and creative.

The FLSA Overtime Special Report makes implementing the Duties Test easy with a unique checklist of questions for each category. Go down the list and you instantly see if the position in question fits the requirements. It's a huge timesaver! See one of the checklists below:

Table 3 Duties Test for the Executive Exemption

2004 changes get special highlighting!

The checklist above also accounts for major changes in FLSA made in 2004, giving you criteria for the test from pre-2004 ("Old" test) and comparing it to current rules ("New" Test). Understanding ALL the changes made in FLSA is critically important.

It's been well publicized that the salary threshold under which virtually every employee is non-exempt went from $155 a week ($8060/year) to $455 a week ($23,660/year).

But did you also know that the 2004 revisions also created several specific protected groups who will always be non-exempt no matter how much they make? Or that another change in the law could make thousands of branch managers or others in "sole charge" of an operation eligible for overtime? We'll explain all the details on these and every other important revision.

There's no need to dig to find what's new. The 2004 changes are marked with their own logo, seen throughout the Special Report.

Are you beginning to see why so many feel this Report is the key they need to unlock the complexities of FLSA? We believe you'll feel that way too, especially when you see how affordable this particular key is to own and use.

The exact FLSA Exempt/Non-Exempt guidance you're likely to need … for under $30!

What would you pay an attorney to answer just a few FLSA questions? Hundreds, and perhaps even thousands of dollars. Now think about what you'd pay for your attorney to explain the entire law, highlighting the 2004 changes.

FLSA Overtime: Making Your Way Through the Exempt/Non-Exempt Minefield does both jobs for just $29.95. At that price, and given the government's aggressiveness, can you really afford to NOT have this information?

Don't wait until there's an employee complaint!

Should DOL come calling, (and it only takes one employee complaint to start an investigation), ignorance of the law will be no excuse. This particular dragnet ensnares both the guilty … and the unaware.

Stay out of both groups!

Questions? Or more convenient to order by phone?

Dial 800-727-5257 and speak to a customer service representative. BLR is always happy to hear from you.