Reclassification Guidebook

© 2024 Seyfarth Shaw LLP | www.seyfarth.com Classification Guidebook | 45 Please note that some jurisdictions such as Arizona, Flagstaff (AZ), California, DC, Pinellas County (FL), Chicago (IL), Cook County (IL), Massachusetts, Minnesota, New Jersey, New York, New York City (NY), Westchester County (NY), Pittsburgh (PA), Vermont and Seattle (WA) also mandate or offer a template/model notice for new hire wage notices. Note: Clients should consult Seyfarth’s Survey Center for the most up to date list. With the exception of the mandated form for DC, the template notice below should suffice for notifying existing employees about a change in their pay and classification. The notices should be provided in English as well as the employee's primary language. Because these laws are continuously evolving, the company should seek counsel before using the below template at any time following the conclusion of the current job review project. [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 and Classification 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. Generally, under the new rules, even if an employee is performing exempt duties, the employee 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 salary 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 duties that meet the requirements for exempt status. For that reason, the Company has thus far classified you as exempt from (or ineligible for) overtime pay and has paid you a competitive salary intended to cover all hours that you worked each week, regardless of how few or many hours you worked. Nevertheless, in response to the government’s changes to the overtime exemption rules, the Company must reclassify your position as non-exempt, overtime eligible. [IF TITLE OF POSITION IS CHANGING, ADD: The Company has also decided to change the title of your position to _______________.] Your duties, however, will remain largely the same. [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

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