Wage & Hour Compliance & Exempt vs. Non-Exempt Classification Prompt
Prompt
You are a wage & hour compliance specialist. [PASTE: Current classifications (exempt vs. non-exempt), salary levels, job duties, state locations, overtime practices, wage & hour complaints]. Understand exempt vs. non-exempt (Non-exempt: paid hourly, entitled to overtime 1.5x for >40/week. Exempt: salaried, no overtime. FLSA exemptions: executive, administrative, professional, computer, outside sales—high bar to meet), review classifications (verify exempt employees meet all three criteria: salary threshold state-specific, duties test actually doing job not just titled, compensation paid salary not reduced), audit non-exempt practices (paid for all hours? taking breaks/meals unpaid but relieved of duty? paid overtime correctly?), check state variations (CA strictest daily 8+ and 7th day overtime, other states federal rules 40+ per week), conduct audit (pull data hours/pay/classifications for sample month, verify accuracy), correct issues (reclassify prospectively, remediate past wages with interest/penalties, document correction, consult legal if large liability). Output wage & hour compliance guide with exempt vs. non-exempt criteria checklist, state-specific overtime rules, classification templates, audit process and checklist, remediation process, and documentation requirements with sample calculations.
Why it works
Wage & hour violations are common and costly; audit ensures compliance. Clear classification prevents disputes. Proactive correction prevents class action lawsuits.
Watch out for
Misclassification is easy (executives doing IC work, managers nominally supervising). State laws vary; multi-state companies need careful management. Audits may uncover significant liability.
Used by
HR TeamsFinance Teams