10.2 FLSA Classification, Hours, and Overtime

FLSA Playbook for HR Operations

The Fair Labor Standards Act (FLSA) is a core wage-hour law for PHR purposes. The exam often tests whether HR recognizes classification, hours worked, overtime, and recordkeeping issues. The operational answer is to review the role and records, not rely on title, department tradition, or manager preference.

For covered nonexempt employees, overtime pay is generally required at not less than one and one-half times the regular rate of pay after 40 hours of work in a workweek. That rule makes timekeeping and classification central. If the employee is nonexempt, HR should focus on capturing all hours worked and making sure overtime is paid correctly.

Exempt and Nonexempt Logic

Exempt status is not a reward for importance. It is a legal classification based on applicable requirements. A title such as coordinator, manager, analyst, or specialist does not decide the issue by itself. HR should compare actual duties, pay basis, and current rules to the exemption being considered.

PHR questions may describe a manager wanting to classify an employee as exempt because the employee is salaried. Salary alone is not enough. HR should review the full classification analysis and document the basis. If the role does not meet exemption requirements, the employee should be treated as nonexempt even if the role is important.

Hours Worked and Timekeeping

Nonexempt time records must reflect hours worked. Risk appears when employees work before clocking in, after clocking out, through unpaid meal periods, while traveling, or while answering messages outside scheduled hours. A policy against unauthorized overtime does not allow the employer to ignore time actually worked.

• Train managers not to encourage off-the-clock work.
• Require nonexempt employees to report all work time accurately.
• Review edits to time records for support and employee confirmation when appropriate.
• Pay overtime owed, then handle policy violations through coaching or discipline if needed.
• Reaudit classifications when duties change materially.

The exam may include an employee who worked unapproved overtime. The correct response is usually to ensure the employee is paid for hours worked and then address the approval problem separately. Refusing to pay because approval was missing is the type of shortcut PHR questions are designed to catch.

FLSA errors can spread quickly because one role classification or timekeeping practice may affect many employees. HR should correct the individual issue, then check whether similar jobs, locations, or managers have the same problem. Good wage-hour practice combines classification review, accurate records, payroll coordination, and manager accountability.