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May 06, 2010
Factors to Consider when Conducting an Exemption Audit

In a BLR webinar entitled "Exemption Audits: Prepare Now for Stepped-Up Department of Labor (DOL) Enforcement--Who's Entitled to Overtime and Who's Not," Cheryl D. Orr, Esq. partner and co-chair of the national Labor and Employment Practice Group at Drinker Biddle & Reath LLP described best practices when beginning to conduct an exemption audit. Important steps to take include:

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  • Review the job descriptions(s) and history of the position, including identifying and interviewing the decision-makers who designed it.
  • Design a questionnaire to track exemption factors and use specifics to be sure you're meeting the legal requirements.
  • Define your sample and be sure it is large enough to be representative.
  • Distribute forms and set a timeline for analyzing the results.

Once an audit has concluded:

  • Analyze the feedback.
  • Prepare summary findings.
  • Implement recommendations.

Cheryl D. Orr, Esq. is a partner and co-chair of the national Labor and Employment Practice Group at Drinker Biddle & Reath LLP. She concentrates her practice on defending employers against FLSA collective actions and state and federal wage and hour class actions. She regularly litigates discrimination, harassment, and unfair competition claims, conducts high-level workplace investigations, develops plans for reductions in force and offers employer advice and counseling.

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