In the first installment on FLSA classifications we suggested
that employers perform an internal audit to assess compliance with
FLSA and state law exemptions from overtime. In this post, we
review a key strategic tool to address the misclassifications.
Reclassification from exempt to non-exempt is a key compliance step
under the FLSA. When done proactively, it helps reduce risk and
ensures employees are properly compensated.
When Should You Reclassify?
Reclassification is appropriate when a position no longer meets
exempt requirements. Common triggers include:
– Changes in job duties
– Failure to meet salary basis requirements
– Audit findings
– Organizational restructuring
