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Change in FLSA Status for Nonexempt Employee Letter

Authors: Michael Cardman, XpertHR Legal Editor, and Allen S. Kinzer, Vorys, Sater, Seymour and Pease LLP

When to Use

The sample letter below may be used to inform a once-nonexempt employee that he or she has been classified as exempt from the overtime requirements of the Fair Labor Standards Act. The employer's legal department should carefully review any changes in exemption status before the employee is informed.

NOTE: The US Department of Labor (DOL) has proposed regulations that would, if finalized, increase the minimum salary for most overtime-exempt employees from $455 per week to $679 per week (or from $23,660 per year to $35,308 per year). The proposed regulations also would allow employers to count nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the standard salary level test, as long as they are paid annually or more frequently. The DOL projects the regulations will take effect January 2020.

Customizable Letter