top

CONSULTING SERVICES		 || About Us || Contact || Home ||
Loading
 eSource-HR Navigation
Fair Labor Standards Act(FLSA)

The Fair Labor Standards Act (FLSA) is the Federal wage and hour law that regulates how employers compensate their employees. FLSA covers every aspect of employee compensation from minimum wage to determining the right rate of overtime pay.

FLSA requires that employers are knowledgeable and up-to-date on all of its complex and far reaching rules and regulations.

eSource-HR offers its clients thorough and cost-effective FLSA audits which are considered to be the most useful tool an employer can use to help ensure compliance with the FLSA and avoid potential liability or costly litigation.

A FLSA compliance audit covers all of an employer's personnel policies and practices. In this review, our experienced consultants conduct a review of current practices to determine if there are any gaps in the process that are non-compliant with current law and, where necessary, provide recommendations for corrections, ensuring in the process that any potential liability holes are closed.

FLSA Compliance Services:

  • Review of existing job descriptions
  • Assign an exempt/non-exempt status based on job descriptions
  • Review recommendations with clients and make any adjustments based on updates or changes to job descriptions
  • Provide FLSA training materials for new supervisors/managers
  • Write talking points for explanation of status change
  • Assess if back wages are owed because of incorrect FLSA categorization

Please contact us to get additional details on FLSA compliance for your organization.

FLSA Compliance Tips
  • Adopt a safe-harbor policy. When the DOL rewrote the overtime labor laws, it created a “safe harbor” defense for employers that unintentionally make improper deductions from exempt employees’ salaries. That provision allows you to correct improper-deduction mistakes without losing an employee’s FLSA exempt status.


  • Conduct an exemptions test before you re-classify employees and carefully communicate the reasoning behind the reclassification. Lack of proper understanding about a reclassification can lead to employee morale issues; if you are unsure about how to communicate the change please contact us and one of our HR professionals will work with you to provide the proper communication.


  • Maintain the appropriate records for your non-exempt employees and conduct frequent audits to ensure that you are paying overtime as required and audit frequently.


  • Act quickly when an employee's status is in doubt.The FLSA allows employees to collect liquidation damages when companies are in willful violation of the regulation;this means the penality will be doubled and you may have to pay attorneys fees for the employee.
 About Us | Contact | Support | T