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How to Communicate a Change in FLSA Exemption Status to Employees

Author: Deborah J. Tibbetts, Esq.

Sometimes as a result of changes in job duties, an employer may have to reclassify an exempt employee as nonexempt and restructure his or her compensation plan.

Communicating a change in status to an employee is a delicate matter. Such a change may impact significant areas of an employee's life, including compensation, work schedule, flexibility, work routine, job duties and self-esteem. It is important to communicate a change in exemption status face to face and to be clear, firm and diplomatic.

To communicate a change in status, a prudent employer should be guided by the steps set forth below.