46 | Classification Guidebook © 2024 Seyfarth Shaw LLP | www.seyfarth.com 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 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, contact your favorite Seyfarth lawyer. Note: Clients should consult Seyfarth’s Survey Center for the most up to date list. Your new pay rate and pay method will be reflected in your paycheck for the pay period ending [___________], 202__. Your workweek, for purposes of determining whether you have worked overtime hours in the week, will begin at [time] on [day] and continues until [time] on the following [day]. [For states with daily overtime requirements, the workday starts for overtime purposes at [time].] 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 AND/OR REFER TO A PLAN OR POLICY WHERE THE EMPLOYEE CAN DISCOVER WHAT CHANGES MAY OCCUR DUE TO RECLASSIFICATION AS A NON-EXEMPT EMPLOYEE.] For the particulars concerning your eligibility for fringe benefits, sick, vacation, and personal time off, please refer to the applicable policies for non-exempt employees in the employee handbook.
RkJQdWJsaXNoZXIy OTkwMTQ4