Overtime Exemption Compliance Assessment
The Department of Labor has just released new proposed overtime exemption regulations, which will have a dramatic impact on the banking industry. The
new standards have been introduced to achieve President Obama’s stated intention of causing employers to reclassify individuals to non-exempt status.
We have developed an assessment methodology and tools to facilitate banks conducting their own self-audit. Banks need to identify current exempt classified
positions which will be adversely affected by the new rules. Organizations can then assess compliance and cost management options in advance of the regulatory
effective date. We provide the sequence of steps, the community bank assessment tools, and the legal guidance. Human Resource professionals within the
Bank will gather and analysis the data, which will lead to updated classification determinations.
I. INFORMATION ANALYSIS
The assessment begins with a review of payroll records and position descriptions to determine whether existing documentation is in place to conduct an efficient and effective review. The Bank will gather
the required documents (compensation, incentive, and organizational structure) and we will review those documents.
II. JOB ANALYSIS CHECKLIST
For those positions within the Bank subject to challenge under the new regulations, we will prepare job specific analysis checklists based upon the Bank’s current job descriptions. We will provide those
job analyses checklists to the Bank.
III. JOB CONTENT ANALYSIS
The Bank’s human resource professionals will confer with Bank supervisors and management to conduct that internal study.
IV. LEGAL ANALYSIS
We will review this data and suggest whether the position would likely be viewed as exempt on a go-forward basis. In some cases, we may recommend changes to the mix of duties and responsibilities for
a position, so the Bank could retain exempt status. In other cases we may recommend an alternative pay plan or specific policy - control to reduce overtime costs for the Bank.
V. WRITTEN REPORT
Each Assessment will create an attorney/client relationship for the purposes of this project. Therefore, all communication will be protected by the attorney/client
privilege. This provides a unique opportunity for complete candor, teamwork, and little risk of subsequent disclosure in an investigation or lawsuit.
Participating banks will receive a written report identifying classification conclusions.
VI. PRICING
We have agreed to a reduced fee schedule for association members. The fee varies depending on the number of employees employed by the Bank.
Bank Size
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Non-Member Fee
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Member Fee
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0-30 Employees
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$1,550
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$1,000
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31-60 Employees
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$2,400
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$1,750
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61-100 Employees
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$3,950
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$2,550
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101-200 Employees
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$6,300
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$4,800
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201-350 Employees
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$8,700
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$7,100
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351 or more Employees
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Individually Negotiated
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Individually Negotiated
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ABA member banks who wish to participate in an Assessment may obtain additional information by calling 1-866-801-6302, emailing bankers@employlawcompliance.com
or faxing us at 770-206-3381.
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