Reclassification Guidebook

50 | Classification Guidebook © 2024 Seyfarth Shaw LLP | www.seyfarth.com Date: Date: Recordkeeping Note: Regardless of whether the notice includes a signature block, a copy should be given to the employee, and the original should be kept in the employee’s personnel or compensation file (e.g., New York requires that the original be kept 6 years). Whenever the acknowledgment and signature block are used in a notice, an employer signature and date should be provided even if the employee never signs. If the employee refuses to sign the acknowledgment, add a note to the effect that the employee was shown the wage notice but refused to sign it. 4. Back Pay Acknowledgement Form It is advisable to reach a verbal agreement with the employee concerning the amount of back pay before attempting to formalize the agreement with the below cover letter and acknowledgment form. The letter and form below should suffice in most jurisdictions. In some states, however, there are several variables that impact the necessary substance of such an acknowledgment or release. For example, California has very specific language required. Should you desire to pay back wages to and obtain a release , please consult with your Seyfarth Shaw attorney in tandem with the suggested cover letter below. Suggested Cover Letter [COMPANY LETTERHEAD WITH SENDER’S CONTACT INFO] As we have discussed, the Company believes you were properly classified as exempt when you worked as a [OLD JOB TITLE]. You were recently reclassified as non-exempt, however, because [PICK ONLY ONE OF THE FOLLOWING OPTIONS TO USE IN LETTER: (i) your salary does not meet the new, higher salary level requirement under the DOL’s recentlychanged rules, OR (ii) your duties as a ___ [NEW JOB TITLE (OR OLD IF UNCHANGED)] going forward will be somewhat different than before and cause the Company to believe that it is more appropriate to classify you as non-exempt in your new/revised role.] Despite the Company’s proper treatment of you as an exempt employee in the past, it has agreed to work with you to reach an agreement on an amount that would adequately compensate you for any overtime hours you may have worked as an exempt [OLD OR UNCHANGED JOB TITLE, AND, IF EMPLOYEE WAS IN THE ROLE MORE THAN TWO YEARS, ADD: over the past two years]. After considering our analysis of your [DESCRIBE RECORDS OR METHOD COMPANY USED TO ESTIMATE OVERTIME HOURS] and [what you have told us throughout our discussions about your typical work hours OR (IF EMPLOYEE PULLED TOGETHER A DETAILED ESTIMATE OF HOURS, the estimate you provided of your hours worked], we have reached an agreement that [you worked ____ overtime hours since [START DATE OF RELEVANT BACK WAGE PERIOD] OR the actual hours you have worked since [START DATE OF RELEVANT BACK WAGE PERIOD] cannot be determined with certainty, but that ___ hours is a fair and reasonable estimate].

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