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Risk Memo To: Director of Human Resources From: [Your Name], HR Analyst Date: [Insert Date] Subject: Payroll Investigation Findings and Compliance Risks Findings on Employee Classification After reviewing the designated worksheet for the Fair Labor Standards Act (FLSA), it has been found that ABC Company Customer service representatives (CSRs) are nonexempt employees. There are two types of employees: exempt and nonexempt. The FLSA differentiates exempt and nonexempt based on whether the employee works the duties required as an employee, makes enough money every week each month, and is responsible enough to the employer or business that will be employed. While there is minimum wage and overtime pay for nonexempt employees under federal labor laws, exempt employees are located in recognized exemptions — executive, administrative, professional, or computer-related positions. Leaving aside the causation aspect, it is that the job description for CSRs usually involves answering incoming customer service calls, resolving service issues, and processing payments, none of which qualifies for executive or administrative exemption because most of its duties do not involve managerial duties or independent authority to make decisions or handle company operations with a high degree of discretion. CSRs also lack the advanced professional work involving specialized education, system analysis, and programming that would over FC; hence, they are not eligible for the computer and professional employee exemptions under FLSA. Furthermore, the CSRs' salary is far below FLSA's threshold of $35,568 per year. No matter your job duties, if you are an employee earning less than this amount, you automatically qualify as nonexempt. However, CSRs at ABC Company are paid hourly wage, so the only proper classification is nonexempt; therefore, they are entitled to overtime payments for the hours worked more than 40 hours per week. Its high compliance has a significant impact, and the company's failure to recognize this classification, which contributed to the wage complaint filed by the company with the Department of Labor (DOL), is a compliance issue that needs to be addressed immediately. Findings on Employee Pay When I looked at Timesheet Records from January, February, and March, it was discovered that Erik Kilmonger had performed at least two overtime violations. The records show that Erik Kilmonger routinely worked more than 40 hours each week, for instance, 70 hours in January, 55 hours in February, and 50 hours in March. The FLSA requires that you pay nonexempt employees at one and a half their regular hourly rate for any hours worked over 40 in a workweek. However, his weekly earnings did not make an adjustment in payroll records for the additional hours worked. The fact that he was not compensated for overtime in violation of the law as required, as outlined in the complaint of employees, confirms that this strongly su...