Analysing jobs to determine exempt or non‐exempt status

Although it is more than 60 years old, the Fair Labour Standards Act (FLSA) is showing a new vitality. During the 12‐month period ending June 30, 2002, the number of law suits filed in federal district courts under the FLSA increased dramatically by 75% from 2,009 to 3,529. Current and former employees often file law suits under the FLSA as class actions for unpaid overtime. Frequently, the employees claiming overtime pay were salaried employees who were classified by their employers as exempt executive, professional or administrative personnel. Such law suits by employees or US Department of Labour (DOL) have resulted in multi‐million dollar judgements and settlements. The best way to avoid costly law suits is with careful review of employee classifications.