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FLSA: Can You Reclassify Employees?

Posted by Eric Daniel on Dec 21 2016

The short answer is yes. All employees may be classified as non-exempt. Being classified as non-exempt is considered a benefit to the employee, while being classified as exempt is considered a benefit to the employer. The Department of Labor is fine with any and all employees being classified as non-exempt.

A piggy bank filled with $100 bills

That said, when making classification changes, keep in mind that similarly-situated employees should generally be classified the same way. It could be seen as discriminatory if Jr. Accountant John is classified as salaried exempt, giving him more flexibility and a pay increase, while Jr. Accountant Maria is reclassified as hourly non-exempt. If you’re going to split up a group of employees like this, you’ll want to make sure that you have legitimate business reasons for your decision, and that you’ve documented those reasons in your employees’ files.

Topics: Common Questions

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As HR professionals, we are most interested in the intersection of the HR practice, technology and business results in today’s organizations. We have a strong interest in areas like recruiting, payroll, benefits, and ACA management, and the technology that manages these areas of interest.  We also keep an eye towards the thousand other areas that impact HR Generalists at every level (VP, Director, Manager, etc.). This Blog does just that.

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