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How to communicate a change in FLSA exemption status to employees

Discover best practices for explaining FLSA reclassification, including compensation changes, time reporting, and overtime expectations.

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by Deborah Tibbetts

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

Communicating a change in status to an employee can be 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.

Our how-to guide outlines the steps may be used to communicate a change in FLSA exemption status to an employee.

In this guide, get step-by-step guidance on:

  • Step 1: Explain Why the Change Is Occurring
  • Step 2: Discuss the Meaning of a Change in Status
  • Step 3: Apprise the Employee of Changes in Compensation
  • Step 4: Inform the Employee of Changes in Position
  • Step 5: Provide Reassurance Regarding Perceived Changes in Status, Position or Value to the Company
  • and more…

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