Abstract
The Fair Labor Standards Act (FLSA) requires employers to pay a minimum wage and overtime pay to their employees. Certain executive, administrative and professional employees are exempt from these requirements if their duties satisfy specific criteria and if they receive a weekly salary in excess of specified rate. Many issues exist in determining whether employers are in compliance with FLSA, depending, for example, on how employers treat deductions from salary, travel time, meal and rest periods and training time. Lawsuits for alleged violations of FLSA can be brought by either the U.S. Department of Labor or private parties. Every compensation manager should review pay plans and administration to ensure FLSA compliance. This article provides a primer for FLSA compliance that can be used to review pay plans or to train new members of the compensation team.
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