Front Cover Back Cover

Reclassification Guidebook

Table of Contents V
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
B. Sample Written Notices and Acknowledgements 41
1. Notice to Reclassified Employees Whose Duties and Pay Will Change 41
2. Notice to Employees Whose Pay, But Not Duties, Will Change 44
3. Notice to Employees Who Will Remain Exempt and Receive a Raise 47
4. Back Pay Acknowledgement Form 49
Sample Agendas and Talking Points for Discussing the Changes 52
A. Agenda and Talking Points for Meetings With Managers 52
B. Agenda and Talking Points for Meetings With Employee Groups 54
C. Agenda and Talking Points for One-on-Ones With Employees 55
Sample FAQs 57
A. FAQ for Questions from Managers of Reclassified Workers 57
B. FAQ for Questions About Overtime Eligibility and Calculation 58
Legal and Budgetary Factors to Keep in Mind 61
Evaluating Duties to Help Decide Between Raising Pay or Reclassifying 63
A. Option 1: Increase Base Pay, as Necessary, and Classify All in the Role as Exempt 63
B. Option 2: Reclassify Employees as Non-Exempt 64

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