42 | Classification Guidebook © 2024 Seyfarth Shaw LLP | www.seyfarth.com [COMPANY MEMO HEADER] To: [SPECIFIC EMPLOYEE’S NAME] From: [SENDER—LIKELY HR, LEGAL, OR A BUSINESS LEADER] Cc: [NAME OF DIRECT MANAGER OVER AFFECTED EMPLOYEE] Date: [DATE, WHICH, EXCEPT IN MISSOURI, SHOULD BE THE LONGER OF 2 WEEKS OR 1 PAY PERIOD IN ADVANCE OF NEW PAY RATE TAKING EFFECT] Subject: Notification of Change in Your Pay, Classification, and Duties As we discussed during the [company-wide/department-wide/team-wide] [webinar/phone call/meeting], the U.S. Department of Labor (“DOL”) recently changed the rules concerning when employees may be classified as ineligible for (or exempt from) overtime pay. Specifically, under the new rules, even if an employee is performing exempt duties, such as, by way of example only, managing or supervising others, making important decisions for the Company, or making important decisions for our clients, the employee still must receive overtime pay for any hours worked in excess of 40 per week unless the employee receives a certain minimum amount of compensation at a level set by the DOL. The Company greatly values the work that you have done as a [OLD OR, IF NOT CHANGING, CURRENT POSITION TITLE]. In that role, you have performed many duties that meet the requirements for exempt status. For that reason, the Company has thus far classified your position as an exempt one that is ineligible for overtime pay and has paid you a market competitive salary that was intended to cover all hours that you worked in any workweek regardless of how few or many hours you actually worked. You and your work remain of great importance to the Company. But in response to the government’s changes to the overtime exemption rules [and in light of your new duties], the Company has decided to reclassify you as a non-exempt, overtime-eligible employee. Your core function and importance to the Company will remain unchanged. [Your job title and] [T/t]he specific tasks that the Company expects of you, however, will be somewhat different. A copy of your new job description is attached and has been provided to your direct manager or supervisor. Going forward, your performance will be evaluated based on the duties as described in the attached new job description. Should you have any questions about the change in duties or concerns about your ability to perform any of the new duties, please contact [___________] in HR. [USE THIS PARAGRAPH IF EMPLOYEE LIVES AND WORKS IN A STATE WITH NO DAILY OVERTIME PAY REQUIREMENTS] Going forward, your reclassification as a non-exempt employee means that you will now be paid [an hourly rate of $___ / a weekly salary of $___ [POSSIBLY ADD: for a regular workweek of __ hours], plus [time and one-half / one-half] your regular rate of pay for all hours that you work [in excess of 40 / beyond your regularly scheduled hours] per week. [ADD THE FOLLOWING IF TIME AND ONE-HALF OVERTIME RATE: This means that in weeks in which your only compensation is your hourly rate of pay / salary, you will be paid for [any overtime hours worked / overtime hours beyond __] at the time and one-half / one-half overtime rate of $___.] [IF SALARY COVERS MORE THAN 40 HOURS, ALSO EXPLAIN THAT THE FIRST __ HOURS WILL BE PAID AT HALF-TIME RATE.] [CONSIDER ADDING THE FOLLOWING IF HOURLY PAID AND RATE WILL BE DETERMINED BASED ON ANTICIPATED OVERTIME HOURS RATHER THAN BY DIVIDING ANNUAL SALARY BY 2,080 HOURS: We anticipate that you will work a fair number of hours in excess of 40 per week
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