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This report includes a summary of key changes, including the salary level test and salary basis test.

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July 13, 2010
Beginning a Compensation Review and FLSA Assessment

In a BLR webinar entitled "Compensation Plan Design: The Three Cs for Achieving Success," Brooke Green, founding principal with Presidio Pay Advisors and Mary Topliff, Esq., founder of Mary L. Topliff law offices in San Francisco described important steps to beginning the process of a Compensation Review and/or Fair Labor Standards Act (FLSA) Analysis.

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  • Announce the project. This can be done in several ways depending on the culture and procedures in place within the company. Often it comes from the head of Human Resources or a Vice President who announces a "total compensation review." Other times a company may want only certain relevant managers to be aware of the project. Often the approach is dependent on the reason for the review.
  • Educate managers. Offer managers a course in "Compensation 101," including the legal issues involved with overtime exemptions and names of classifications. Methodologies can depend on the size and kind of company.
  • Select the jobs to evaluate. There are different approaches to this process, but the best option is to include as many positions for which good data are available.

Brooke Green is a founding principal with Presidio Pay Advisors ( where she provides consulting advice and implementation assistance to clients with compensation support needs. Mary Topliff, Esq. founded the law offices of Mary L. Topliff in San Francisco ( after practicing civil and employment litigation for nine years. The firm specializes in employment law counseling, training and compliance.

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