Reclassification Guidebook

© 2024 Seyfarth Shaw LLP | www.seyfarth.com Classification Guidebook | 43 during peak periods and that, with that overtime work, your total compensation for the year will be roughly the same as it has been in the past as an exempt employee.] [OR, USE THIS PARAGRAPH IF EMPLOYEE LIVES OR WORKS IN CALIFORNIA] Going forward, your reclassification as non-exempt means that, while you will continue to perform many of the same duties that earned you exempt status in the past, you will now be paid [an hourly rate of $__ / a weekly salary of $___], plus time and one-half your regular rate of pay for hours that you work in excess of 8 per day and for the first 8 hours of work that you perform on the seventh consecutive workday in those instances where you work seven consecutive days. You will also receive pay at double your regular rate of pay for hours that you work in excess of 12 per day or for hours worked beyond 8 per day on a seventh consecutive workday. On days for which your only compensation is your hourly rate of pay, your time and one-half overtime rate of pay will be $[___], and your double-time overtime rate of pay will be $[____]. [ADD THE FOLLOWING IF REGULAR 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 daily overtime hours during peak periods and that, with that overtime work, your total compensation for the year will be roughly the same as it has been in the past as an exempt, overtime-ineligible employee.] If you need language to explain the daily overtime pay in Alaska, California, Colorado, Florida (for manual labor), Nevada, Oregon (for mill, factory, or manufacturing employers), or Puerto Rico, consult your favorite Seyfarth attorney. Your new pay rate and pay method will be reflected in your paycheck for the pay period ending [___________], 2024. Your workweek and pay dates will not change, and the Company will continue to pay you [weekly/bi-weekly/semi-monthly]. Your eligibility for any incentive payments, such as bonuses and commissions, [will/will not] change. [IF CHANGES WILL OCCUR, DESCRIBE THEM GENERALLY OR REFER TO A PLAN AND/OR POLICY WHERE THE EMPLOYEE CAN DISCOVER WHAT CHANGES MAY OCCUR DUE TO RECLASSIFICATION AS A NON-EXEMPT EMPLOYEE.] For the particulars concerning your fringe benefits, sick, vacation, and personal time off, please refer to the applicable policies for non-exempt employees in the employee handbook. This notice is being provided to you in accordance with federal and/or applicable state and local laws. It does not constitute a binding contract or agreement and does not change your status with the Company as an at-will employee, which means that both you and the Company can terminate the employment relationship at any time, with or without cause or notice. Should you have any questions about your new pay rate or your reclassification as a non-exempt, overtimeeligible employee, please contact [___________] in HR. In most jurisdictions, the notice may end here. In Illinois, New Hampshire, and New York, as well as a growing number of local jurisdictions (see e.g., Pinellas County (FL), Minneapolis (MN)), however, the notice should be signed by the employee. Note also that some jurisdictions also require the notice to be provided in the language spoken by the employee. Rather than having only some employees sign, the company could choose to require all affected employees to sign the notice. The suggested acknowledgment, at least for these jurisdictions, is as follows:

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