“If I could sum up why I’m committed to the HR Girlfriends community it would come down to because we are ‘….in this together.'”

~Sana’ Rasul, Chief Girlfriend

Q&A: We would like to reclassify an employee from exempt to nonexempt status. Is it okay to do this? What do we need to do to change their status?

Yes, it’s possible to make this change. Any employee can be classified as a nonexempt employee, although we generally recommend that all employees in the same role have the same classification.

That being said, exempt employees sometimes feel there is a certain “status” involved in being salaried and exempt. If you decide to reclassify an employee, aim to do so in a manner that does not denigrate them or cause them to become disengaged.

When reclassifying employees from exempt to nonexempt, it’s important to clearly communicate the change in writing, make the change effective in payroll and job descriptions, and communicate your policies and expectations that will be affected. You’ll also want to ensure that managers understand all applicable wage and hour laws impacting nonexempt employees and how they may affect their day-to-day work. These may include:

– Taking meal and rest breaks
– Properly tracking their time
– Reporting any overtime worked

We also highly recommend that you implement this change with advance notice to the affected employees and with an effective date that falls on the start of a workweek and your payroll cycle. This gives you time to communicate your expectations and train your employees on the policies they’ll need to follow now. We recommend obtaining a written acknowledgment from the affected employees showing their understanding of these changes.

If you are reclassifying the employee because you realized they have been misclassified as exempt, you may want to speak with an employment attorney first since the change may tip the employee off that they were previously missing out on overtime or other benefits.

This Q&A does not constitute legal advice and does not address state or local law.

Answer from Sergio, SHRM-CP:
Sergio has over a decade of customer service experience including non-profit, food service, and hotel management. He graduated from Portland State University with a Bachelor of Science in Business Management and Leadership. In his free time Sergio loves physical fitness, spending time with family, and travelling.

Leave a comment

Never miss an opportunity to earn HRCI/SHRM credits, identify a mentor, or connect 1:1 with another HR Girlfriend in your city or across the country.

0 Comments
Inline Feedbacks
View all comments
Author picture

HR Girlfriends™ is a Human Resources networking organization dedicated to advancing the practice and culture of people empowerment. Our team of Girlfriends consult, train, educate, develop, share, promote, and advocate for solutions in the field of human resource management.

Are You IN?
Or Are You OUT?

It’s time you join forces with a community of like-minded peers ready to tackle the issues unique to the women of HR.
  • All
  • Affirmation
  • Career Mondays
  • Certification
  • COVID-19
  • CyberSAFE
  • Guest Blogger
  • HR Advisor
  • HR Law Alert
  • HR Q&A
  • HR Reading
  • HR Reel Talk
  • Join Our Team - Apply Now
  • Membership
  • Talent Management
All
  • All
  • Affirmation
  • Career Mondays
  • Certification
  • COVID-19
  • CyberSAFE
  • Guest Blogger
  • HR Advisor
  • HR Law Alert
  • HR Q&A
  • HR Reading
  • HR Reel Talk
  • Join Our Team - Apply Now
  • Membership
  • Talent Management
HR Q&A

Q&A: A remote employee told us they were injured at home during their workday. What are our responsibilities?

When an employee informs you that they were injured while working from home, take the claim seriously and follow your usual procedure for a workplace ...
Read More →
Affirmation

Affirmation: My choices today support my goals for tomorrow

Each day is a reminder that I am one step closer to my goals. Keeping that in mind helps me to stay on track with ...
Read More →
Career Mondays

Career Monday: How to Make the Most of Working from Home

Working from home is becoming much more common. On the surface, it sounds ideal. You can work in your robe while you talk to your ...
Read More →
Share via
Copy link
Powered by Social Snap