64 | Classification Guidebook © 2024 Seyfarth Shaw LLP | www.seyfarth.com B. Option 2: Reclassify Employees as Non-Exempt Of course, an employer may always choose to reclassify incumbents in a role as non-exempt. It is critical to understand that, regardless of the method of pay, reclassified employees are subject to the same minimum wage and overtime requirements rules as other non-exempt employees. This means, among other thing: 1. The employer must maintain accurate time records, even if no overtime is worked. 2. The employer must establish appropriate work time policies and practices, for example in the areas of meal/rest breaks, travel time, remote work, overtime, and timekeeping. 3. The employer must pay overtime premiums for hours worked in excess of 40 per workweek (and daily overtime in states with such requirements). Simply stated, no method of compensation permits an employer to avoid keeping accurate records of hours worked for non-exempt employees.
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