How to Reclassify Previously Exempt Employees as Nonexempt
Any employee can be classified as a nonexempt employee, although we generally recommend that all employees in the same role have the same classification.
That being said, exempt employees sometimes feel there is a certain “status” involved in being salaried and exempt. If you decide to reclassify an employee, aim to do so in a manner that does not belittle them or cause them to become disengaged.
When reclassifying employees from exempt to nonexempt, it’s important to clearly communicate the change in writing, make the change effective in payroll and job descriptions, and communicate your policies and expectations that will be affected. You’ll also want to ensure that managers understand all applicable wage and hour laws impacting nonexempt employees and how they may affect their day-to-day work. These may include:
