© 2024 Seyfarth Shaw LLP | www.seyfarth.com Classification Guidebook | 5 Reclassifying Employees to Non-Exempt Status A. Potential Steps for Reclassifying Employees as Non-Exempt— Due to Salary Below the New Threshold An employer will confront a host of decision-points once it determines which exempt employees should be reclassified as non-exempt due to a salary level below the new threshold. In identifying and weighing each of those decisions, employers might consider the following steps: 1. Determine whether any of the employees’ duties should change (e.g., should any of their exempt duties be shifted to employees who will remain exempt; should any non-exempt job functions of employees who will remain exempt be shifted to those who will soon be reclassified as non-exempt). 2. Ensure that the job description for each position, whether reclassified or remaining exempt, accurately reflects the duties and responsibilities that incumbents will be expected to perform going forward. For a list of do’s and don’ts on job descriptions, click Do’s and Don’ts or turn to page 19. 3. Determine what the employee’s new rate of pay should be as a non-exempt employee. For a list of considerations in setting a method and rate of pay, click New Rate Determination or turn to page 11. 4. Develop a communication plan to explain to impacted employees that changes will be announced soon because of new government requirements. For a list of considerations around those communications, click Communication Plan or turn to page 31. 5. Provide written notice to employees who will be reclassified. For a suggested form of the written notice to use with employees whose duties will remain the same, click Notice of Pay Change or turn to 47. For employees whose duties will change, click Notice of Duties and Pay Change or turn to 50. Ensure the payroll department updates the employee’s itemized wages to report accurately the employee’s new rate of pay as well. 6. Equip your HR team and involved or impacted managers with sufficient information and understanding to answer questions that employees may ask after the announcement. For FAQs that could be used by your managers, click FAQ-Manager or turn to page 57. 7. Ensure that the reclassified employees have access to the timekeeping system and that the system can accommodate the increased number of timekeepers. 8. Train the reclassified employees and their managers on timekeeping policies and expectations, as well as other policies impacting non-exempt employees (e.g., overtime, meal/rest break), and the importance of adapting work habits to comport with those policies and practices.
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