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January 19, 2011
DOL Considering Rule on Recordkeeping, Exempt Employees

According to the DOL’s Spring Regulatory Agenda, the Wage and Hour Division (WHD) intends to update the Fair Labor Standards Act (FLSA) recordkeeping requirements.

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The department is considering a proposed rule that would require covered employers to notify workers of their rights under the FLSA, and to provide information concerning hours worked and wage computation.

Under the proposed rule, employers would be required to perform a written classification analysis for every worker that is excluded from FLSA coverage. In addition, the employer would have to disclose the individual analysis’s to each worker, and retain the documents in the event of a WHD investigation.

Currently employers are not required keep a written analysis on why an employee is exempt. Creating these records will be a time-consuming task for employers who have a large number of exempt workers.

A fact sheet concerning amendments to the Fair Labor Standards Act (FLSA) recordkeeping regulations is available on the DOL website.

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