© 2024 Seyfarth Shaw LLP | www.seyfarth.com Classification Guidebook | i TABLE OF CONTENTS Page Introduction ................................................................................................................................ 1 An Overview of the FLSA’s Revised Overtime Exemption Rule ................................................. 3 A. Changes to the Executive, Administrative, and Professional (“EAP”) Exemptions ..........................................................................................................3 B. Changes to the Highly-Compensated Employee (“HCE”) Exemption ...................3 C. The Duties Tests Remain Unchanged..................................................................4 D. Deadline to Comply..............................................................................................4 Reclassifying Employees to Non-Exempt Status........................................................................ 5 A. Potential Steps for Reclassifying Employees as Non-Exempt—Due to Salary Below the New Threshold .........................................................................5 B. Steps for Reclassifying Employees as Non-Exempt—For Reasons Other Than Salary .........................................................................................................6 C. Sample Workflows for a Strategic Review and Change Management Process ................................................................................................................ 6 D. Sample Task Allocation Chart ..............................................................................9 Determining Pay for Reclassified Employees............................................................................11 A. Deciding How to Pay Reclassified Employees ...................................................11 Determining Back Wage Payments (if Any)...............................................................................17 A. Steps for Calculating and Making Back Wage Payments, if Owed to a Reclassified Employee ....................................................................................... 17 B. Possible Data Sources to Use in Determining Overtime Hours for Back Pay Purposes ....................................................................................................18 C. Sample Back Overtime Pay Calculations and Considerations............................18 Updating Job Descriptions ........................................................................................................19 Eliminating Job Positions (if Necessary)....................................................................................23 A. Action Items for Positions Being Eliminated .......................................................23 Planning Your Communications ................................................................................................27 A. Communications Overview ................................................................................27 Understanding Psychological Factors Before You Communicate..............................................29 A. Psychological Factors: Concerns & Possible Resistance ...................................29 Sample Announcements and Communications .........................................................................31 A. Communication Plan Checklist...........................................................................31 1. Sample Internal Announcement .............................................................33 2. Sample Emails to High-Level Management ............................................33 3. Sample Email to Managers of Affected Employees ................................35 4. Sample Email to Employees Whose Salary Will Increase.......................36 5. Sample Email to Employees Being Reclassified.....................................38
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