How Do You Change Non-Exempt to Exempt?
Practical tips for reclassifying employees from exempt to non-exempt status
- Identify positions.
- See also: DOL takes aim at white-collar overtime exemption.
- Set a date.
- Determine pay rates.
- Inform employees.
- Inform payroll.
- See also: Lawsuits pile up against DOL’s overtime rule.
- Consider changing the position.
Can you reduce salary of non-exempt employee?
An employer can reduce a non-exempt employee’s salary as long as the employee is compensated at no less than the California minimum wage. In addition, the employer must compensate the employee for any overtime at no less than one and one-half (1 ½) times the minimum hourly wage.
What does non-exempt mean in HR?
Nonexempt: An individual who is not exempt from the overtime provisions of the FLSA and is therefore entitled to overtime pay for all hours worked beyond 40 in a workweek (as well as any state overtime provisions). Salaried nonexempt employees must still receive overtime in accordance with federal and state laws.
What does exempt vs non exempt employee mean?
The primary difference in status between exempt and non-exempt employees is their eligibility for overtime. Under federal law, that status is determined by the Fair Labor Standards Act (FLSA). Exempt employees are not entitled to overtime, while non-exempt employees are.
Can the same job be exempt and non exempt?
Recently I was asked a question, “Can I have two employees with the same job title, but with different exempt/nonexempt classifications?” The simple answer is yes, this is possible. From a compliance standpoint, federal and California law agree that job title is not determinative of exemption status.
