Employee Reclassification Letter
(Exempt to Nonexempt) (FLSA)

Summary

This template is an Employee Reclassification Letter (Exempt to Nonexempt) (FLSA) that is used to inform an employee that their job position has been reclassified from exempt to nonexempt, reasons why the position was reclassified, and information about being a nonexempt employee. This template includes practical guidance, drafting notes, and alternate and optional clauses. This template is intended for private employers. It is based on federal law and does not address all potential state law distinctions; therefore, it is important that you check any relevant state and local laws. For detailed information on exemptions from the FLSA, see Non-White Collar Exemptions to Minimum Wage and Overtime Requirements under the FLSA, White Collar and Sales Exemptions (FLSA), Partial Overtime Exemptions under the FLSA, FLSA Exemption Pitfalls to Avoid Checklist, and Motor Carrier Exemption and Other Exemptions to Overtime Requirements Only under the FLSA. See also Domestic Service Workers under the Fair Labor Standards Act (FLSA). For additional information regarding federal wages and the FLSA see Salary Payments for Exempt and Non-Exempt Employees under the FLSA, Compensable Time (FLSA) and Regular Rate of Pay: Excluded Compensation (FLSA). For information on how employers can reduce their susceptibility to DOL investigations regarding wages and classification of employees, see Wage and Hour Programs: Key Components of Comprehensive Programs, Exempt/Non-Exempt Employee Classification Audits: Key Considerations, Independent Contractor Classification Audits and Reclassifying Employees and Independent Contractors, Pay Equity Audits: Best Practices, Timekeeping Policies and Practices under the FLSA, and How to Communicate a Change in FLSA Exemption Status to Employees. To assess an employer's compliance with wage and hour requirements under the FLSA, see Wage and Hour Compliance Assessment Checklist. For videos regarding FLSA issues, see Salary Basis Test Video, Outside Sales Exemption Video, Retail and Inside Sales Exemption Video, Wage and Hour Claims Avoidance: Exempt Employees and Independent Contractors Video, Wage and Hour Claims Avoidance: Non-Exempt Employees Video, Wage and Hour Claims Defense Video, and DOL Wage and Hour Investigation Preparation Video. For Training Presentations on the FLSA, see Fair Labor Standards Act (FLSA) Issues for Managers: Training Presentation and Wage and Hour Training Programs for Employees: Best Practices. For analysis of state exemptions, see the Exempt vs. Non-exempt column of Wage and Hour State Practice Notes Chart.