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Nearly 75% of practices inadvertently misinterpret the Fair Labor Standards Act (FLSA) guidelines for classifying an employee as exempt or nonexempt for overtime pay, according to estimates from Sandra McGraw, MBA, ESQ, CEO of The Health Care Group in Plymouth Meeting, PA. Failing to apply the guidelines correctly potentially puts your organization in jeopardy. A revamped FLSA issued by the Department of Labor (DOL) in August 2004 addressing circumstances under which employers may treat certain employees as exempt from overtime pay may have something to do with the confusion.