Florham Park counsel Bill Horwitz published an article for Employee Benefit News titled, “Practical tips for reclassifying employees from exempt to non-exempt status.” As a result of regulatory changes, class and collective action lawsuits, and increased crackdowns by federal and state governments, many employers are scrambling to reclassify employees.
Bill provides practical tips for every stage of the process, from identifying positions for reclassification to reevaluating pay rates after reclassification.
“Even if employees were properly classified in the past, they may now be misclassified because the work employees actually perform often changes over time,” Bill wrote. “Exemption requirements change over time as well.”
He also recommends informing employees in writing, informing payroll, issuing new job descriptions, training newly non-exempt employees and requiring reclassified employees to sign-off on their new timekeeping and overtime policies, among other key tips.