The Fair Labor Standards Act (FLSA) provides minimum wage and overtime pay protections to most employees. Employees generally must be classified as “non-exempt” and, therefore, be eligible for such minimum wage and overtime protections unless they meet the criteria to be classified as “exempt” from minimum wage and overtime requirements. Typically, only employees in certain positions who meet certain salary and job duties criteria set forth under the FLSA may qualify for an exemption.
Periodically, employers may be required to reclassify exempt employees as non-exempt, such as following a legal change to the exemption criteria or upon discovery that an employee is misclassified as exempt. Employers may also choose to reclassify employees as non-exempt to serve other business purposes.
Employee misclassification is a common FLSA violation. Employers who fail to classify their workforce accurately may be subject to costly and time-consuming legal challenges. Therefore, it is critical that employers ensure all employees are properly classified and take appropriate measures to reclassify exempt employees as non-exempt when necessary.
Click the following link to read our entire HR Compliance Bulletin – Best Practices for Reclassifying Employees as Non-exempt.
Contact us for support with your company’s evaluation of employees’ exempt status or other wage and hour topics.