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Reclassifying an Worker From Exempt to Nonexempt Standing

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Reclassifying an Worker From Exempt to Nonexempt Standing

Query:


We want to reclassify an worker from exempt to nonexempt standing. Is it okay to do that? What do we have to do to alter their standing?

Reply:


Sure, it’s attainable to make this transformation. Any worker will be categorized as a nonexempt worker, though we usually advocate that every one workers in the identical position have the identical classification.

That being stated, exempt workers typically really feel there’s a sure “standing” concerned in being salaried and exempt. In the event you determine to reclassify an worker, purpose to take action in a fashion that doesn’t denigrate them or trigger them to develop into disengaged.

When reclassifying workers from exempt to nonexempt, it’s vital to obviously talk the change in writing, make the change efficient in payroll and job descriptions, and talk your insurance policies and expectations that will probably be affected. You’ll additionally wish to be certain that managers perceive all relevant wage and hour legal guidelines impacting nonexempt workers and the way they might have an effect on their day-to-day work. These could embrace:

  • Taking meal and relaxation breaks
  • Correctly monitoring their time
  • Reporting any time beyond regulation labored


We additionally extremely advocate that you simply implement this transformation with advance discover to the affected workers and with an efficient date that falls on the beginning of a workweek and your payroll cycle. This offers you time to speak your expectations and practice your workers on the insurance policies they’ll must observe now. We advocate acquiring a written acknowledgment from the affected workers exhibiting their understanding of those modifications.

In case you are reclassifying the worker since you realized they’ve been misclassified as exempt, chances are you’ll wish to communicate with an employment lawyer first because the change could tip the worker off that they had been beforehand lacking out on time beyond regulation or different advantages.

Unique content material by the HR Assist Heart. This info is supplied with the understanding that Payroll Companions is just not rendering authorized, human assets, or different skilled recommendation or service. Skilled recommendation on particular points needs to be sought from a lawyer, HR advisor or different skilled.

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