Twenty percent of large companies believe they will miss the August 23 deadline for bringing their companies into compliance with new regulations governing overtime eligibility, according to a study by Hewitt Associates.

Hewitt surveyed more than 150 major companies and found that another 23 percent said they will meet the required date, but only with additional resources allocated to the effort. Among those that need more time, the median is an additional 80 days beyond the deadline.

In April, the U.S. Department of Labor (DOL) published new regulations redefining the "white-collar" exemption tests used to determine whether an employee must be paid overtime. The new rules will be enforced beginning August 23.

The most significant issues in complying with FLSA legislation involve categorizing current jobs and interpreting new FLSA rules, according to the study. Specifically, 26 percent of companies said their biggest challenge is that existing job documentation is old, incorrect, or inconsistent. Another 24 percent said their primary issue involves understanding the new rules.

"Many companies have a considerable road in front of them, as they need to sort through existing job titles and codes before they can determine what needs to be done with the new FLSA regulations," says Tom Farmer, senior consultant for Hewitt Associates. "Organizations have to ensure that they properly classify positions by employees, examine variations in job duties by department and clarify overly generic job titles. This is a daunting task, especially as we pass the halfway mark to comply."

Hewitt's study also found that most companies have yet to determine the financial impact of the FLSA changes and have yet to communicate the impact of the changes throughout their organizations.

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